Tag Archives: CEA

Code of Ethics and Professional Client Care

Posted on 6 Jan 2011 | Comments Off on Code of Ethics and Professional Client Care

Terminology: Under the new Estate Agents Act

  • “Estate agents” means estate agency businesses(sole proprietors, partnerships, and companies)
  • “Salespersons” means individuals who perform estate agency work

The Code of Ethics and Professional Client Care is established under the Estate Agents (Estate Agency Work) Regulations 2010. The provisions in the Code will commence on 15 Nov 2010.

The Code sets the standard of performance required of estate agents and salespersons when carrying out their estate agency work and dealings with clients and public. If you fail to observe the Code, it may amount to unsatisfactory professional conduct or professional misconduct and you could be subject to disciplinary actions under CEA.

The Code covers:

i. Knowledge of and compliance with relevant laws, practice circulars and guidelines, and essential facts
ii. Due diligence and compliance with law and statutory requirements
iii. General duty to clients and public
iv. Prohibition against bringing discredit or disrepute to real estate industry
v. Duty to clients in relation to signing of documents
vi. Obligations in respect of agreements
vii. Obligation in conveying offers and counter offers
viii. Interpretation or translation if necessary
ix. Duties in respect of advertisements
x. Duty to avoid conflict of interests
xi. Recommending professional advice where appropriate
xii. Safeguarding confidential information

The Code is part of the Estate Agents (Estate Agency Work) Regulations 2010. Click here to download the Estate Agents (Estate Agency Work) Regulations 2010.

Estate Agents (Estate Agency Work) Regulations 2010

In addition to the requirements set out in the Code, the Estate Agents (Estate Agency Work) Regulations 2010 will prohibit dual representation by salespersons (i.e. no salesperson is allowed to act for both buyer & seller or landlord & tenant in any property transaction), and prohibit estate agents and salespersons from handling cash in certain transactions or referring their clients to any moneylender. Starting from 1 January 2011 estate agents will also need to use prescribed estate agency agreement/s with their clients for the sale, purchase or lease of residential property in Singapore.

 

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Council for Estate Agencies to start operations on October 22

Posted on 28 Sep 2010 | Comments Off on Council for Estate Agencies to start operations on October 22

Legislation has been passed to set up a new statutory board to regulate the real estate agency industry.

Speaking in Parliament on Wednesday, National Development Minister Mah Bow Tan said the Council for Estate Agencies (CEA) will start operations on October 22.

It will take over the Inland Revenue Authority of Singapore’s (IRAS) role of licensing estate agents and implement a new regulatory framework for real estate agencies.

Under the new framework, all sales persons will have to register with CEA from January 1 next year before they can start work.

As part of the registration criteria, they will need to have a minimum of four GCE “O” Level passes or equivalent and also pass a mandatory CEA examination for salespersons. They must also not have criminal records for fraud or dishonesty.

The framework also provides enhanced licensing conditions for estate agents.

CEA will start accepting applications for licences from November 1. IRAS will not accept applications for House Agent’s Licence from September 30. Existing estate agents with a valid House Agent’s Licence issued by IRAS will be deemed licensed by CEA until end of this year. They can apply to CEA for a new licence from November 1, before their current licence expires on December 31.

Newly-registered sales persons will need to attend a compulsory examination preparatory course before they can take the new CEA examination. The course will be available from November and will be conducted by CEA-approved course providers. Those who have passed an industry examination such as the Common Examination for House Agents, the Common Examination for Salespersons and the Certified Estate Agent Examination will not be required to take the new CEA examination.

The licensing fees for estate agents will range from S$300 to S$3,000 per annum and the fee is tiered. The annual registration fee for each salesperson is S$230.

Mr Mah said his ministry has briefed industry players on the key changes and prepared them ahead of the new framework that aims to boost standards of professionalism in the industry.

He said: “While the majority of estate agents and salespersons are providing professional services, a few black sheep have seriously tarnished the image of the industry, undermined consumer confidence, and hurt the interest of consumers that they are supposed to represent.

“The purpose of the new regulatory framework is not just to safeguard consumers against errant agents, but also to preserve the integrity of the industry.”

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