Tag Archives: Foreign Properties

Professional practice when marketing projects

Posted on 5 Jul 2014 | Comments Off on Professional practice when marketing projects

Professional practice when marketing projects

The CEA had received feedback on instances of salespersons holding placards near the road kerb that pose road hazard, or distributing flyers in area without obtaining prior approval.

(1) Salespersons shall not do anything that may bring discredit or disrepute to the estate agency trade or industry; and

(2) Salespersons shall conduct their business and work with due diligence, despatch and care, and in compliance with all laws including statutory and regulatory requirements, practice circulars and guidelines.

Distribution of flyers is allowed only in specific locations of designated SMRT stations and SMRT bus interchanges.

Salespersons are required to seek prior approval from LTA, as SMRT is the operator. Distribution of flyers is not allowed at SBST Bus interchanges and SBST MRT stations.

Dummy advertisements and Advertising with consent by developers

Advertisement of a property shall be done only when there is an actual property to be marketed.  Salespersons shall not advertise any property that is no longer available for sale or letting. If salespersons are advertising developer’s units for rental or sale, they are required to seek the developer’s prior approval before advertising the developer’s properties. Salespersons are to retain proof of the approval to advertise.

Marketing foreign properties by estate agents involving third parties

If an estate agent secures a foreign project through a third party, it must ensure that due diligence on the project and the developer, including on the third party, is performed before marketing the property. If the EA is unable to perform due diligence, then the EA should not market the property.

If the third party is not licensed with CEA, then the third party is not allowed to conduct estate agency work in Singapore. Licensed EA cannot be present in name only and cannot let the third party perform estate agency work as the third party is not licensed with CEA. The estate agency work is to be done by the estate agent and salespersons deployed must be conversant with the facts and processes for marketing foreign property.

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Unlicensed Estate Agent Charged for Conducting Estate Agency Work for Foreign Properties

Posted on 24 May 2014 | Comments Off on Unlicensed Estate Agent Charged for Conducting Estate Agency Work for Foreign Properties

The Council for Estate Agencies (CEA) charged Tan Yang Po (50 years old, Singaporean female) trading as AZEA Personal Coaching (“APC”) in Court today for allegedly acting as an estate agent without being licensed with CEA. This is the first prosecution case related to unlicensed estate agency work for the sale of foreign properties.

Under the Estate Agents Act, an estate agent must be licensed with CEA before it can market local or foreign properties in Singapore. Tan, trading as APC, faces five charges for acting as an estate agent without being licensed as an estate agent. CEA’s charges are listed in the Annex.

About the Case
CEA’s allegations against Tan are as follows. APC had first advertised to invite members of the public to attend its free property investment seminar. Those who attended the seminar were encouraged to enrol in a two-day investment course, with a fee, to learn about investment strategies. The course participants were awarded membership to a property club of AZEA.

APC introduced its client, Sterling Camden LLC, a foreign property developer to members of the property club. Tan allegedly informed members that the developer was selling apartments in Houston, Texas, USA costing about US$49,000 to US$60,000 each, with a guaranteed investment return of 8% plus net rental yield for two years. Thereafter, Tan allegedly facilitated the sale transactions for the said foreign properties and for each successful sale, collected commission for the sales from the foreign property developer. At all material times, APC acted as an estate agent while it was not licensed as an estate agent with CEA.

CEA’S CHARGES AGAINST TAN YANG PO TRADING AS APC
Five charges for acting as an estate agent without being licensed as an estate agent, by introducing her clients, Sterling Camden LLC, the vendor and developer of Camden Court Royal Residences to members of the property club of AZEA, arranging and closing the transactions and collecting commission from her clients for the sale and purchase transactions.

The punishment for each offence under Section 28(1)(b) of the EAA 2010 is a fine not exceeding $75,000/- or imprisonment for a term not exceeding 3 years or both. In the case of a continuing offence, there is a further fine not exceeding $7,500/- for every day or part thereof during which the offence continues after conviction.

Advice for Consumers
Consumers should only engage licensed estate agents and registered salespersons. They are advised to check the CEA Public Register of Estate Agents and Salespersons at CEA website or use the “CEA@SG” mobile app to verify whether the estate agent is licensed with CEA or the salesperson is registered with CEA. 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.

Consumers should exercise due diligence when buying foreign properties. They should find out pertinent details such as their eligibility to buy the particular property and all the costs involved, e.g. taxes, maintenance cost, foreign currency fluctuation, if any. Consumers should be wary of claims of high returns and low initial down payments. They should conduct their own research, look at the viability, pricing and terms and conditions of the purchase, and not rely solely on the advice of representatives of the developer of the foreign property.

For tips on buying foreign properties, consumers can refer to the online guide http://www.cea.gov.sg/cea/content/binary/pdf4Files/NewForeignProperties.pdf.

For more consumer education materials, visit CEA’s Consumer Resource Centre.

About Council for Estate Agencies
The Council for Estate Agencies (CEA) is a statutory board established under the Estate Agents Act to regulate and promote the development of a professional and trusted real estate agency industry. The key responsibilities of CEA are to license estate agents and register salespersons, promote the integrity and competence of estate agents and salespersons, and equip consumers with the necessary knowledge to make informed decisions in property transactions. For more information, please visit: www.cea.gov.sg

Source : CEA – 21 May 2014

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