Tag Archives: CEA

Two salespersons disciplined for bypassing landlord’s salesperson

Two salespersons, Goh Seow Guan, Vincent and Chua Say Siong, Eric were disciplined for misleading acts in an attempt to bypass the landlord’s salesperson, bringing disrepute to the estate agency industry.

Goh represented a tenant who was interested in renting a property. He contacted the landlord’s salesperson to arrange for a viewing and agreed to co-broke with him for the potential rental transaction. Later, Goh’s client made an offer which was conveyed to the landlord through her salesperson and the landlord counter-offered. Goh’s client then made another offer to rent the property at $8,500 per month if the landlord was agreeable to pay $1,500 to repair certain defects.

Instead of conveying the offer to the landlord’s salesperson, Goh decided to bypass him and asked his colleague Chua to call the landlord to close the transaction. Chua pretended that he had an interested tenant for the property and conveyed the same offer that Goh’s client had proposed.

Upon reviewing the profile of Chua’s prospective tenant, the landlord became suspicious that this tenant was the same person as Goh’s client. Although Chua denied it when asked, the landlord discovered that the tenant was indeed Goh’s client when she met up with him. The landlord informed her salesperson that he had been bypassed, and the salesperson filed a complaint to Goh’s and Chua’s estate agent.

The estate agent subsequently conducted investigations. When asked, Goh and Chua misrepresented to their director that they had come to know of the prospective tenant independently.

For bypassing the landlord’s salesperson even though having agreed to co-broke and lying to a director of his estate agent, Goh has brought disrepute to the estate agency industry, a breach of the Code of Ethics and Professional Client Care (CEPCC). He was sentenced to a total financial penalty of $3,000 and four months’ suspension, with a two months’ suspension running concurrently.

Chua was convicted of bypassing the landlord’s salesperson, lying to the landlord about the identity of the prospective tenant and lying to a director of his estate agent. He was sentenced to a total financial penalty of $5,000 and four months’ suspension, with another three months’ and two months’ suspension running concurrently.

Less new blood joining property industry

Fewer people are willing to become real estate agents given the weak transaction levels in Singapore’s HDB and private housing markets, according to media reports.

In 2013, HDB resale deals plummeted to a historic low of 18,100. But this year’s figure is expected to be lower than that, as there were only 12,683 transactions in the first nine months of 2014.

As for the private residential market, sales barely reached 10,000 in the first three quarters — a figure is roughly equivalent to the quarterly average in 2012.

Given the weak sales, the number of new property agents declined to 3,061 in the last fiscal year compared to 4,289 a year ago, revealed the Council for Estate Agencies’ (CEA) latest report last week.

Moreover, many estate agents have sought alternative sources of income as commissions from selling houses have been hit by weak transaction levels.

For example, 28-year-old Nicholas Chia decided to establish a car-polishing business and a franchise of a pre-school enrichment centre in Q1 2014.

“Because of the slow market, I need something to supplement my income and something in which I can tap the network I’ve made,” said Chia, who has been a property agent since 2010.

Setting up a car-grooming business was an innate choice, he explained. “Almost every property agent has a car, and image is important when they meet clients.”

Other agents turned to multi-level marketing or driving a taxi, noted Dennis Wee Realty agent Aaron Lin.