Tag Archives: Estate agent

Real estate salesman charged with receiving payment from moneylender

Posted on 29 May 2013 | Comments Off on Real estate salesman charged with receiving payment from moneylender

A real estate salesman has been charged with receiving payment from a licensed moneylender for the loans his clients took and handling transaction monies for his clients.

52-year-old Mustafa Kamal Seri was a registered salesman with licensed estate agent Your Estate Specialist LLP when he allegedly committed the offences.

In February 2012, a married couple engaged the services of Mustafa to sell their four-room HDB flat and buy a smaller three-room flat.

In late February 2012, Mustafa approached his clients for a personal loan of S$50,000.

Mustafa asked the couple to borrow the sum from a moneylender and give him the money in advance and that they repay the moneylender using the sales proceeds from the HDB property.

The couple agreed to this.

In February, March and April 2012, Mustafa brought his clients to a licensed moneylender to obtain three separate cash loans totalling S$57,500.

The moneylender deducted a total of S$7,500 in acceptance fees for the three loans, and the couple handed the remaining S$50,000 to Mustafa.

Sometime between May and July 2012, Mustafa received a payment of S$2,000 from the moneylender for the three moneylending transactions of his clients.

For the sale of the couple’s flat in March 2012, Mustafa requested for and received the Option-To-Purchase deposit of S$3,000 from the buyer via a bank transfer, and paid it to his clients.

After the sale transaction was completed in May 2012, the husband handed Mustafa S$15,000 in cash, which Mustafa then handed to his clients’ law firm in July 2012 to complete their purchase of the three-room HDB flat.

Under the Estate Agents Act, it is an offence for estate agents and salespersons to introduce the services of any moneylender to their clients and to receive commissions, rewards, fees, payments or any benefits from any moneylender for any moneylending transaction.

Estate agents and salespersons are prohibited from holding or handling any money for or on behalf of any party in relation to the sale and purchase of any property in Singapore.

Source CNA – 29 May 2013

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CEA “aware” of under-the-radar property sales

Posted on 25 Apr 2013 | Comments Off on CEA “aware” of under-the-radar property sales

More than two years after the formation of the Council for Estate Agencies (CEA) with the aim of regulating the buying and selling of property in the city state, a number of unlicensed real estate agents are continuing to sell overseas property to local buyers in direct breach of current laws.

By doing so they are risking fines, imprisonment or both – and the CEA is aware and watching.

PropertyGuru understands that low-profile events take place each week where ‘experts’ – usually in the guise of a market update presentation, or through an information session about how to make money from property investing which then turns in a sale pitch.

Several buyers who contacted PropertyGuru after attending one of the sessions felt they were pressed into buying something they neither wanted nor knew enough about. They are now seeking legal redress.

These ‘property sales’ events are very much under the radar. You will not see them being promoted in the mass media. Attendees are normally invited to attend by SMS, generally with their details having been passed on by someone known to them who will benefit from a referral fee if a sale is made.

Although the number of such events in Singapore is still small, it’s certainly on the rise.

When contacted by PropertyGuru, CEA’s Deputy Director (Licensing) Mr Yeap Soon Teck, said: “The Council for Estate Agencies (CEA) is aware that some foreign estate agents and salespersons are conducting estate agency work in Singapore without licence or registration, and is currently investigating some cases.”

“CEA takes a serious view of foreign estate agents and salespersons who come to Singapore to conduct estate agency work, without being licensed or registered by CEA. Under the Estate Agents Act and Regulations, only estate agents licensed by and salespersons registered with CEA are allowed to conduct estate agency work in Singapore. Foreign estate agents who conduct estate agency work in Singapore without a licence or registration may be fined or imprisoned, or both.”

“Estate agents who are not licensed to carry out estate agency work in Singapore may instead tie up with licensed estate agents when marketing overseas property developments in Singapore. Overseas developers may also choose to sell their overseas properties in Singapore through their own staff. Such transactions which do not involve estate agents are direct sales from the developers and therefore not regulated by CEA.”

“When marketing property, estate agents and salespersons have to comply with the Estate Agents Act and its Regulations, such as the Code of Ethics and Professional Client Care and the Practice Guidelines on Ethical Advertising. Some requirements are that they must provide accurate information on the property, and state the basis and source of data in their marketing information.”

He added: “The CEA will not hesitate to take disciplinary action against any estate agent or salesperson for such infringement.”

Source : PropGuru – 24 Apr 2013

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