Paper 2: Lesson 1 Council for Estate Agencies (CEA) Flashcards
(25 cards)
What does the Estate Agent Act 2010 consist of?
- Estate Agency Work (governs all pptys in SG - including overseas ppty)
- Licensing and Regulation
- Public Register (Check all EA and RES)
- Dispute Resolution (Mediation & Arbitration)
- Best Practices (Circulars and Guides)
Under Licensing and Registration - Licensing: Section 28 (2), what is the penalty for operating without a License?
$75K fine and/or 3 years imprisonment.
Under Licensing and Registration - Licensing: Section 29 (3), what is the penalty for operating without registration?
$25K and/or 12 months imprisonment.
What is the role of a KEO?
Responsible for proper administration and overall management of the estate agent’s business and supervision of its salesperson. (e.g. CEO / MD)
What are the criteria for being a KEO?
- Sole Proprietor, Partner, Director
- 3 Year working experience / 30 transactions (past 3 years)
- Must not be a KEO/RES of another Estate Agency or Moneylender.
- Fit and Proper (Not un-discharged bankrupt / No criminal record / REA Cert / at least 21 years old)
*In the event of death/resignation/revocation, estate agent must notify CEA within 1 week & appoint new.
What are the fees for Salespersons?
Application & Renewal Fee: $50 (NO GST)
Statutory Fee: $230
What does CPD stand for?
Continuing Professional Development
Who does CPD applies to and what must be done?
- Applies to ALL KEO, practicing director/partner and Salesperson
- Must fulfil min 6 CPF credits, where 4 must be from courses under professional competencies and 2 from courses under generic competencies for each CPD cycle
- Must fulfil CPD requirements before renewal of the licence
What are some topics under Professional Competencies course?
- Laws and regulations:
- Estate agents act & regulations & ethics.
- Other laws & regulations - Property markets:
- Residential / Commercial / Inudstrial / Foreign - Other real estate knowledge:
- Sustainable environment
- Appreciation of other real estate knowledge
Example of topics:
- Professional Service Guidelines for Salesperson (by CEA)
- Marketing Private Residential Properties: OTP and Law Society conditions of sales 2012)
- Law pertaining to uncompleted housing project
- Understanding Sucession, Trusts, Ownership, Tenures in real estate transactions
What are some topics under Generic Competencies course?
16 Critical Core Skills:
- Thinking critically
> Creative thinking
> Decision making
> Problem solving
> Sense making
> Transdisciplinary thinking
- Interacting with others:
> Building inclusivity
> Collaboration
> Communication
> Customer Orientation
> Developing People
> Influence - Staying Relevant:
> Adaptibility
> Digital Fluency
> Global Perspective
> Learning Agility
> Self management
Examples of topics:
- Negotiating your comms
- Filing income tax for salesperson
- Effective telemarketing
Estate Agents (Estate Agency Work) Regulations 2010: What does the Regulation of Estate Agency Work consist of?
- No dual representation
- No referral to moneylenders
- No holding of transaction monies
- Use of council symbols and representations
- Display of estate agent card
Explain Dual Representation.
Cannot represent both vendor and purchaser OR both landlord and tenant FOR THE SAME PROPERTY, regardless of consent or agreement of the client.
*Fine not exceeding $25K OR imprisonment not exceeding 12 months or both.
What are Monies RES are allowed to handle during a transaction?
Sale & Purchase of all ppty in SG:
- Valuation fee
- Commission
Lease of Private Property:
- Valuation fee (if applicable)
- Commission
- Stamp duty lease
- Rental deposit
- Monthly rental
Lease of HDB Property:
- Commission
- Stamp duty fees
What are some examples of TRANSACTION MONIES that RES cannot handle?
- 1% Option fee & 4% Exercise fee for private / $1000 option fee and $4000 exercise fee for HDB
- 1 Month deposit / advance rental for HDB flat
*Transaction Monies can only be handled via Cheque/Cashier’s Order
What are some examples of NON-TRANSACTION MONIES that RES can handle?
- Stamp duty payments (lease)
- Valuation fee
- 1 month deposit / advance rental for industrial/commercial ppty
- Agent commission
- For leases, if RES pay stamp fees first, then reimbursement in cash is fine.
What is the penalty for misuse of Council symbol and representation?
$10,000 and/or 6 months imprisonment.
What is the penalty for not displaying Estate agent card as required?
$10,000 and/or 6 months imprisonment.
What information does the Estate Agent Card consist of? [5 things]
- EA name
- EA Licence No.
- RES Photo
- RES Name
- RES Registration No.
What are some Key changes to the Estate Agents Act?
- Higher maximum financial penalties in disciplinary proceedings:
- Max financial penalty that CEA Disciplinary Committee (DC) may impose will increase from $75,000 per case for both RES and EA to $100,000 for RES and $200,000 for EA (because EA earns more than RES).
New limits will apply to cases referred to the DC on or after the amended EAA is operationalised.
- Enhanced investigations and inspection
- Enhances CEA power for statement-taking. e.g. docs and electronic devices to be furnished.
When is the Prescribed Estate Agency Agreements CEA forms 1-8 applicable?
Only for Residential Properties.
NOT APPLICABLE:
- Ppty outside of SG
- Commercial or industrial properties
- actual or proposed collective sale of ppty
- any actual or proposed sale by a developer of ppty
What are the 3 institutions for Mediation?
- Consumers Assosciation of Singapore (CASE)
- Singapore Institute of Surveyors and Valuers (SISV)
- Singapore Mediation Centre (SMC)
*Mediation is not legally binding
What are the 2 institutions for Arbitration?
- Singapore Institute of Arbitrators
- Singapore Institute of Surveyors & Valuers.
*Arbitration is legally binding
What are the different methods of Dispute resolution?
- Negotiation (Cheap and fast)
- Mediation (Cost involved, not legally binding)
- Arbitration (Costly, legally binding. private settlement)
- Litigation (Costly, legally binding, public settlement)
When is the effective date that all salespeople are required to display their estate agent card?
1st March 2011.
