Written Answer by Ministry of National Development on measures to ensure that property agents under the CEA do not encourage HDB owners to sell their flats before the end of their minimum occupation period

Apr 5, 2021

Mr Don Wee: To ask 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. 

Answer:

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.