Do Not Fall Prey
Below are some case studies for consumers to take note and
you can avoid the pitfalls during property transactions.
Case Study: Unregistered Salespersons
A 91 year old woman Madam T engaged the service of Miss M
to rent out a room in her flat after seeing the advertisement put
up by M. M found a tenant for T and facilitated the rental of the
room. T was however unaware that M was not a registered
salesperson. T’s
grandson
found
out
about
the
rental
transaction and told M that they did not wish to proceed with
the transaction.
M then turned up at the unit and caused a commotion. The
police was alerted to the scene. The grandson subsequently
reported to CEA about the matter. CEA has decided to charge
M for conducting estate agency work without registration.
Learning Points:
 Verify that the real estate salesperson you engaged is
registered with CEA using the public register.
Case
Study:
Alleged
misappropriation
of
funds
by
salesperson
An 89 year old man engaged a real estate salesperson T in the
sale of his private property. The client, wheelchair bound and
partially blind, was staying with his mentally challenged
daughter and a domestic helper.
The salesperson facilitated the sale of the property and helped
the client purchase another smaller property with the sale
proceeds. The client also issued cheques amounting to half a
million in T’s name to pay for the down payment of the new
property, the renovation and buying of furniture for the
unit. However, T did not carry out the full instructions and used
part of the money for his own benefit, including drinking and
spending it at the casinos.
In 2011, the police informed CEA that T was prosecuted for
Criminal Breach of Trust. CEA carried out its own checks and
determined that T’s actions did not deem him fit to be a
salesperson. CEA then denied T of his renewal for registration
in November 2011. T is no longer a salesperson and the case
is undergoing trial at court.
Learning Points:
 Do not entrust you salesperson with money that is meant
for use in purchasing and preparation of the property.
 Involve your family members/relatives in discussions
regarding the transaction.
Case Study: Salesperson providing wrong information
A 57 year old woman wanted to rent an apartment and
informed her salesperson of her two requirements: the property
was to have a minimum floor area of 1367 square feet and at
least three bedrooms. Her salesperson found her an apartment
in Simei. Both her salesperson and the landlord’s confirmed
that the floor area for the three bedroom unit was 1367 square
feet when she viewed the apartment.
The woman rented the unit but subsequently found out that the
actual floor area was only 1270 square feet. She lodged a
complaint with CEA against her salesperson for providing her
with the wrong information.
Her salesperson had failed to verify the information given by
the landlord’s salesperson on the floor area. The landlord’s
salesperson admitted her mistake too and claimed that the
owner had given her the wrong information. Both salespersons
subsequently received a Letter of Advice from CEA.
Learning Points:
 Raise a formal complaint to CEA about salesperson for
misrepresentation, misconduct, etc.
Case study: Conflict of Interest
Kee was charged for failing to declare her interests which were
in conflict with those of the buyers (her clients) as one of the
co-sellers was her husband and colleague, and the other two
co-sellers were her parents-in-law.
She had also facilitated the buyers to enter into a supplemental
agreement to extend the sellers’ stay beyond completion. She
also arranged the sellers to grant the Option to Purchase (OTP)
on the same day as the completion of the Sellers’ Resale
Checklist - which was not allowed within the 7 days of “cooling
off period”. Kee had also asked the sellers to sign an undated
OTP and she had made a false declaration in her salesperson’s
Statutory Declaration that the buyers and sellers had not
entered into a supplemental or other agreement other than the
standard
For failure to declare her interests, the Disciplinary Committee
(DC) imposed a suspension of three months and a financial
penalty of $3,000. For failing to comply with HDB resale
procedures, she was sentenced to a one month suspension.
The sentence of suspension for both charges ran concurrently.
In addition, the DC awarded $1,000 as costs to CEA.
Learning Points:
 Raise a formal complaint to CEA about salesperson for
misrepresentation, misconduct, etc.
Case Study: Avoid premature cashing out of HDB Homes
A 70 year old widow Y faced financial difficulties and wanted to
sell her flat for urgent cash flow after her husband passed away
recently. Y engaged a real estate salesperson to sell her flat
but decided to cancel the sale after some reconsideration. As
she had already signed the Option to Purchase (OTP), she was
likely to face legal action from the buyer.
Considering
Y’s
psychological
state
after
her
recent
bereavement, the salesperson could have explained the
consequences of premature cashing out to his client and
advised Y to consult her family members before persuading her
to sign the OTP.
Learning Points:
 Consult other family members, such as your children,
extensively and know the consequences of encashing
your home before deciding to sell your flat.
 Your salesperson should give you appropriate advice and
explain the consequences of premature cashing out.