New rules by the Council for Estate Agents (CEA) will prohibit dual representation by salespersons, otherwise known as property agents.

This means that from November 15 this year, they will no longer be allowed to represent both the buyer and seller or landlord and tenant in any property transaction.

Estate agents, also known as estate agencies, along with salespersons will also be prohibited from handling cash in certain transactions or referring their clients to any moneylender.

These are among the rules specified by the The Estate Agents (Estate Agency Work) Regulations 2010 (EAW), which contains two codes in its schedules: (i) the Code of Ethics and Professional Client Care, applicable to estate agents and salespersons; and (ii) the Code of Practice applicable to estate agents. These will guide estate agents and salespersons and help to enhance professionalism in the industry and encourage ethical behaviour and good service to consumers.

Other new rules

The EAW stipulates guidelines regarding advertisements and requires estate agents to have systems and processes for the management and supervision of their business and salespersons. Estates agents are also required to have a proper complaints handling system. These will also take effect from November 15.

Meanwhile, from January 1 next year, estate agents will need to use prescribed estate agency agreements with their clients for the sale, purchase or lease of residential property in Singapore.

Persons doing estate agency work will also be required to have professional indemnity insurance coverage, as well as take part in continuing professional development programmes for a minimum of 6 hours per year from 2011.

From March 1, 2011, salespersons will be required to display their estate agent's card when doing estate agency work.

Registration and other requirements

Application for the estate agent's license and salesperson's registration will commence on November 1, at the same time as the implementation of some of the new rules.

Application forms can be downloaded from CEA's website at www.cea.gov.sg, and submitted through their respective estate agencies by November 30, 2010.

Successful registrations will be published on the CEA website on January 1 next year.

From this date, all persons performing estate agency work must be registered with CEA as salespersons via their estate agents and it will be an offence if they operate without registration. They must also have written agreements with estate agents before they can practise.

The CEA will not grant a license or registration to those who do not meet the licensing or registration criteria. This includes those with criminal records, especially for fraud and dishonesty. Applications for individuals with such records will be assessed on a case-by-case basis, taking into account factors such as the severity of the offence and time lapsed.

Council president Mr Greg Seow stressed that CEA would not hesitate to take firm action against estate agents and salespersons for non-compliance.