Property agents may ‘borrow’ transactions to meet new requirement for registration renewal, despite the rules

Key executive officer of ERA Eugene Lim said the agency will step up legal and compliance training to reinforce that it is an offence to falsify transaction submissions.

Committing such an offence may result in CEA revoking their registration, and they will no longer be able to conduct estate agency work after that, he said.

He added that CEA will start collecting commission payment information from all estate agencies from next year, and can easily match this against the transactions submitted.

“If an agent is found to record a transaction under another agent’s name, he would have made a falsified submission, and that may likely constitute an offence,” he said.  

He added that three transactions over three years is not difficult to achieve, and that CEA recognises all types of transactions.

Huttons Asia’s CEO Mark Yip said the company expects all transactions submitted by its salespersons to “accurately reflect the estate agency work carried out”.

The salesperson responsible for the transaction is expected to submit the relevant documents in accordance with CEA’s requirements, he added.

“Our internal processes are designed to support accurate record-keeping and regulatory compliance,” he said.

In terms of how the new requirements may affect headcount, he said the company expects the overall impact to be gradual, with the more noticeable effects likely to be around the next major renewal cycle.

Chief agency officer of PropNex Realty Eddie Lim said the agency does not allow a transaction to be recorded under the name of a salesperson who was not genuinely appointed or involved in the transaction.

The transaction submission is supported by relevant documents, including the prescribed CEA estate agency agreement or applicable appointment forms.

These documents identify the appointed salesperson and are signed or acknowledged by the property owner or client and the salesperson concerned. This provides a formal record of the appointment and the salesperson responsible for representing the client.

He added that any suspected inaccurate declaration or improper attribution will be reviewed under PropNex’s governance and compliance processes.

In practice, salespersons may work in partnerships or teams on the same side of a transaction to provide greater value to consumers, Mr Lim said.

However, only one agent can formally record the transaction to meet the currency requirement. Other team members who contribute substantially through marketing outreach, buyer engagement, market analysis, consultation, negotiations, documentation and transaction coordination cannot record the transaction, he added. 

“But when a consumer complaint comes in, CEA holds everyone responsible.

“PropNex intends to engage CEA on how the currency requirement could appropriately recognise genuine and documentable team participation without weakening the integrity of the framework.”

OrangeTee & Tie declined to comment, while SRI did not respond to queries.

Mogul.sg’s Mr Mak said the workaround may undermine CEA’s governance of the property agency industry.

“The ‘borrowing’ of real estate transactions among property agents not only misleads the public on the proficiency of the agents, but it also makes a mockery of the government policy and regulations,” he said. 

He suggested ways to plug the loophole, including raising the minimum number of transactions, strengthening auditing processes and increasing penalties for wrongdoing.

“You have to make an example. Justice must be done and seen,” he added.