Tag Archives: Council for Estate Agencies

Agents and developers preying on elderly residents for control of their voting rights

At one condominium in Ang Mo Kio, the developer, which also owned units in the property, seized control of the management council and tried – albeit unsuccessfully – to push through a collective sale as well as a proposal to build a covered car park using the maintenance and sinking funds.

At another development in Simei, property agents infiltrated its management council and then transacted several units, with residents suspecting they did so by accessing their personal data or leasing information.

Such “proxy wars” have been waged for years at condos across the island: Home owners who are also property agents or developers allegedly coerce or harass other residents for proxies in a bid to seize majority voting power, get themselves elected into the management council and ultimately make decisions to their benefit.

Association of Management Corporations chief executive Francis Zhan told TODAY: “The whole idea is to get into the management office, copy down residents’ information and contacts, which will help (property agents) in their daily work of selling property. It’s a simple opportunity for those without many contacts.”

He added: “The agents target seniors who are … not so well-educated. They coerce them, harass them … to get them to sign the (proxy) forms.”

Mr Zhan noted there is also the risk of property agents sitting on management councils appointing either themselves or their affiliates as managing agents for the developments.

Last month, condo resident Tan Chuan Poh wrote in to this newspaper to voice his concern at such tactics. He described how a property agent who lived at his condo collected more than 50 proxy votes from owners who could not attend the AGM and voted in three property agent associates and a client, before making himself the chairman of the management council.

The Building and Construction Authority (BCA) is reviewing the Building Maintenance and Strata Management Act, including the use of proxies at annual general meetings, its spokesperson said in response to TODAY’s queries. The review is undergoing public consultation till the end of this month. It is expected to be completed by the end of the year.

Mr Zhan and property agents TODAY spoke to suggested that the authorities disallow the use of proxies for the election of council members.

Mr Tan also proposed banning property agents from holding key appointments on a management council. However, property agent Daniel Ong pointed out: “If it’s a lawyer, insurance agent or a salesman, do you stop them? It does not matter who the person is, we all do what is necessary to survive as long as it does not break the law.”

Ms J Lim is a property agent who also chairs the management council of her condo in the Novena area.

She makes it a point to stay out of matters involving sales of units at her condo. She also tells her husband, who is an engineer, not to get involved or to provide quotations for building inspections.

She noted that the impending introduction of the Personal Data Protection Act will address concerns about potential misuse of personal information.

Ms Lim told TODAY: “It is not all bad, as the experience I have comes in useful at times. The other members will ask me for my advice when it comes to doing things that may affect the valuation of the building … it is about how open you are.”

The BCA spokesperson reiterated that all condo management council members who have direct or indirect interests in any matters or contracts should declare the nature of this interest and abstain from any discussion or voting.

On the issue, Council for Estate Agencies (CEA) Deputy Director (licensing) Yeap Soon Teck warned that property agents “should not take advantage of their position and influence (in the management council) to benefit their estate agency work.”

Also, under CEA’s Code of Ethics and Professional Client Care, salespersons “must not use threatening or harassing tactics or apply unreasonable pressure on any person to get themselves elected (to the management council), and bring discredit or disrepute to the real estate agency industry.” The CEA will look into complaints and property agents who are found guilty of breaching the code could be fined, or have their licences revoked or suspended, Mr Yeap said.

Source : Today – 2012 Jun 11

Unregistered Salesperson Sentenced to $40,000 Fine under the Estate Agents Act

On 25 May 2012, Sim Soon Leong Raymond, was sentenced to a fine of $40,000, or in default 8 weeks imprisonment, in respect of two property transactions.

About the Case
The Council for Estate Agencies (CEA) has earlier charged Sim in Court on 20 October 2011. Sim was not registered with CEA and also did not have a written agreement with the estate agent for him to practise. Despite this, Sim advertised two HDB flats for rental on an online property portal under his name, while describing himself as a Sales Director of a licensed estate agent. He also represented clients in making offers, negotiated property transactions directly and conducted flat viewings.

Sim’s offences were discovered when his clients lodged a complaint with CEA against him for impersonating a registered salesperson. Sim had assumed the identity of a bona fide registered salesperson of a licensed estate agent when he introduced himself to a couple who were interested in buying a HDB property.

The latter checked the Public Register of Estate Agents and Salespersons on CEA’s website and discovered that the photograph of the named person shown on the Public Register record did not look the same as Sim. They filed a complaint with the Council and CEA’s investigations found Sim to have violated the Estate Agents Act. He was the second unregistered salesperson to be charged in court by CEA and convicted. This case illustrates the importance of checking the identity of a salesperson on the Public Register before consumers engage any salesperson for his or her services.

Other Cases Involving Unregistered Salespersons

On 12 January 2012, the first unregistered salesperson to be prosecuted by CEA, Tan Cher Peng, was sentenced to a fine and jail term. There is one more prosecution involving an unregistered salesperson, Lim Beng Kwang, pending a further Court hearing on 21 June 2012. CEA will be prosecuting several more persons for doing estate agency work without being registered over the next few months.

CEA has introduced registration of salespersons to ensure that they fulfil the fit and proper criteria, possess the necessary knowledge to provide professional service to their clients, and adhere to ethical practices. For many Singaporeans, their home is the largest single investment they will ever make and many of them do property transactions through salespersons. If there are problems with the transaction or with the property, they may suffer losses and other consequences. Therefore, it is important that they be given the best possible advice and service in making such investment. The Estate Agents Act and Regulations impose requirements that registered salespersons have to comply with so as to ensure professional conduct and service in the industry.

Advice for Consumers
Consumers should only engage salespersons who are registered with CEA. They are advised to request for the salesperson’s registration number, and verify that the salesperson is listed on CEA’s Public Register at http://www.cea.gov.sg before engaging his or her services. The Public Register allows consumers to search the particulars of a salesperson, using the salesperson’s name, registration number or mobile number.

Consumers are also advised not to respond to any real estate agency flyer, leaflet or advertisement that does not provide a salesperson’s details or registration number.

Consumers should report to CEA when they encounter any person not listed on the Public Register but carrying out estate agency work illegally. They can report the person to the CEA at 1800-6432555 or feedback@cea,gov.sg.

Source : CEA – 2012 May 29