Enforcement of Code of Professional Conduct to Ensure Property Agents Do Not Encourage HDB Owners to Sell Their Flats before End of Minimum Occupation Period and Purchase More Expensive Replacements
Ministry of National DevelopmentSpeakers
Summary
This question concerns MP Don Wee's inquiry into measures preventing property agents from encouraging HDB owners to sell flats before their Minimum Occupation Period or purchase unaffordable replacements. Minister for National Development Desmond Lee responded that agents are bound by the Estate Agents Act and a professional code requiring unbiased financial advice. The Council for Estate Agencies ensures compliance through regular surveillance, inspections, and the investigation of public complaints regarding agent misconduct. Errant salespersons may face warnings, financial penalties, or the suspension and revocation of their registration for breaching these ethical standards. These measures are designed to promote professional conduct among agents and protect the financial interests of HDB flat owners.
Transcript
45 Mr Don Wee asked the Minister for National Development (a) what measures are in place to ensure that property agents under the Council of Estate Agencies do not encourage HDB owners to (i) sell their flats before the end of their minimum occupation period (MOP) and (ii) purchase replacement flats which are usually more expensive than the ones they sold; and (b) how is the code of professional conduct enforced and monitored.
Mr Desmond Lee: The conduct of real estate salespersons (RESs), commonly known as property agents, is governed by the Estate Agents Act (EAA) and its Regulations, as well as the Code of Ethics and Professional Client Care (CEPCC). These have been put in place by the Council for Estate Agencies (CEA) to ensure that RESs conduct themselves professionally and ethically, and to safeguard consumer interest.
The CEPCC requires RESs to protect and promote the interests of their clients. RESs must therefore be fully conversant and comply with the relevant laws, regulations and codes that apply to property transactions, and must not do anything which may directly or indirectly lead their clients to infringe them. When advising their clients on their property purchases, RESs must give accurate and unbiased advice which takes into account their clients’ interests, including relevant factors such as affordability.
In the context of the sale and purchase of HDB flats, RESs must ensure that their clients meet HDB's eligibility requirements to sell their flats, including fulfilling the Minimum Occupation Period (MOP). Flat owners can login to My HDBPage to check if they have met the MOP, which can vary for different flat types. RESs may advise flat owners to check on their MOP via the owners' My HDBPage.
CEA will investigate complaints against RESs and conduct regular inspections and surveillance, and take action against those who breach the EAA and its Regulations. Members of the public who are aware of RESs who have breached the EAA and its Regulations can submit a complaint via CEA’s website, and CEA will look into the matter. Errant RESs may be warned, issued with a financial penalty and/or have their registration with CEA suspended or revoked.