Four things to note when engaging a property agent

If you’re looking to buy, sell, or rent a property – you might consider engaging the services of a property agent.

Before you get started, take note of these four steps:

1. Visit the CEA Public Register to check your agent’s registration status and past property transactions

All property agents in Singapore must be registered with the CEA through a licenced property agency. Each registered property agent has a unique CEA registration number, e.g. R123456A. 

It is an offence for any individual to carry out estate agency work (e.g., referring/introducing a client to another party to transact a property, negotiate a property transaction on behalf of a client) without valid registration. 

Before engaging a property agent, visit CEA’s Public Register  to verify if he/she has a valid registration. 

You can also use the Public Register to check the property agent’s:

1. Residential property transactions closed within the last two years, and which parties they represented, 

2. Industry accolades and awards, and, 

3. Disciplinary records within the last two years, if any.

The Public Register and transaction records will help you make an informed decision on which property agent to engage for your property transactions.

The information in the Public Register can also help you to verify the following details of a property agent, which are required to be listed in their property advertisements^*:

• Property agent’s name, CEA registration number and phone number

• Property agency’s name and licence number

*For newspaper classified advertisements and phone text advertising, only the property agent’s name (in full or abbreviated) and phone number are required to be stated.

The absence of or failure to verify one or more of the above details could be an indication that the advertisement is not placed by a bona fide property agent registered with CEA.  

Protect yourself against scams

Scams continue to be on the rise. There have been cases involving individuals posing as property agents who place fake property advertisements on property listing platforms. Some even use fake property agency cards to appear more credible. When property seekers contact them to view the property, the scammers may ask for deposits to secure viewing appointments, then disappear with the money.

To protect yourself against scams, you should:

1. Verify the identity of the property agent against the CEA Public Register to verify that he/she is registered with CEA.

2. View the property with the CEA-registered property agent in person to verify that it exists. Do not make any payment before viewing the property.

3. Make payment directly to the property owner and not the property agent, using verifiable modes of payment such as crossed cheques and bank transfers.

You can verify if a property agent is registered with CEA by searching for the property agent on the CEA Public Register using the advertised phone number. If the search does not lead to a property agent’s profile page, it means that the phone number is not registered with CEA by any property agent, and could be an indication that the advertisement is a scam. If you believe that you may have been a victim of a scam, please file a police report. 

2. Use the standard contract templates for your property transactions

 To protect your interests, use the standard contract templates for your sale and purchase, as well as rental residential property transactions.

Here are the key benefits of using the available templates:

• The templates establish a common standard that is fair to all parties in the transaction.

• The templates offer room for flexibility by allowing parties to add and vary terms in the annexes.

• First-time users are made aware of non-standard terms in the process.

• The templates provide clarity in disclosure requirements by the property agent if a conflict of interest arises.

• Property agent commission will be clearly stated at the beginning, leaving little room for dispute later.

3. Agents cannot dual represent

A property agent can only act for one party in a property transaction. In other words, a property agent cannot represent and collect commission fees from both buyer and seller, or both tenant and landlord, in the same property transaction. 

If the property agent represents more than one party in the same property transaction, it will be considered as dual representation and is an offence under the Estate Agents Act.

However, your property agent can help the other party with the paperwork as long as they have obtained your consent. It must also be clear to all involved that your property agent is not acting for the other party. Similarly, your property agent cannot collect a fee from the other party.

4. Property agents should not handle monies related to property transactions

When it comes to monies related to your property transaction – be it a sale and purchase, or a rental transaction – it is best to handle the money yourself. In fact, it is illegal for property agents to handle certain monies related to property transactions.

You should pay the payee (e.g. the property owner for rentals) directly  and do not pass the payment to a third party.

We also encourage that you protect yourself and prevent disputes by using verifiable payment modes such as crossed cheques and bank transfers when making payments.

For more information, please visit https://www.cea.gov.sg.