Singapore property agents were not allowed to do

Whether you will need to buy, sell, rent or lease a property in Singapore, high chances are you will engage a property agent’s service. Often, this agent would be a relative or friend of yours, or even come highly recommended by a trusted contact. Perhaps you have little knowledge in engaging or interacting property agents because you have not transacted or invested in a property before. Imagine you want to purchase Florence Residences for your own use and it is your first time engaging real estate agent services, this article will guide you as an important education of the actions that your property agent is allow or not allow to do. 

Before engaging your agent’s service, make sure to ask for their estate agent cards and ensure their name is on the cards. They must wear their cards at all times when they meet their clients.

1. Your property agent cannot represent for both sides

In every property transaction, there must be at least two parties where each of them represent a buyer and a seller, and in the case of renting, it is the tenant and landlord.

Do remember that your appointed agent cannot represent both you, and the other party in the same transaction. Your appointed agent can only represent you in one single property transaction, what means is that he cannot receive commission from both you and other party in the same transaction as doing so is an offence as it is known as dual representation. 

Similarly, if you are a buyer who has identified the property to buy, the seller’s agent cannot ask you for commission since the agent is already representing the seller. 

2. Agents are not allow to handle certain monies on your behalf

While some may trust their property agent to handle all transaction matters relating to property, your property agent cannot handle certain monies relating to transactions. There are some examples like when you are paying the down payment for a property, you should make the required payment directly to the rightful owner of the property rather than getting your property agent to pass the monies to the owner on your behalf. Similarly, if you are selling a property, your agent is not allow to receive the amount paid on your behalf.

3. Real estate agent cannot introduce a moneylender to you

As we all know, property transactions usually require large amounts of financing. Here’s a classic example, while you may have purchased a new home while your property agent was still in the midst of helping you to sell your existing home. You may also need some funds to renovate your new home. However, knowing the tight cash flow situation that you are in, your ‘helpful’ agent may recommend and introduce you some moneylenders (ah long/loan shark) you could have high chances to borrow money in the interim. You thought your agent is kind and thoughtful. 

Under no circumstances should your property agent be allowed to introduce you to a moneylender, even a legal one which also applies even if your agent stands to receive no personal benefits (commissions) for introducing and genuinely dong it to provide you with the help that they thought you needed. 

4. Agent cannot advertise your property without your consent

Agent is not allow to copy an advertisement from an owner, or from another agent and pass it off as their own. If they do not have permission to advertise, they cannot market and advertise it with below market value in order to attract potential buyers to contact them. On the other hand, if they are given permission to advertise, do note that your agent should ensure all information listed in the advertisement is accurate. 

Words or phrases that go against your best interest such as ‘no co-broke’, ‘no agents’ or ‘buyers pay commission’ should not be used in the advertisement. Reason being these phrases will limit the pool of potential interested parties. An agent must always act in the best interest of the client that he/she is representing. 

Now that you know some of the important things that your property agent should or should not do. Not only you will protect your own interests but also receive appropriate service that you should expect from a registered professional. This is also to ensure that both parties with agents do enjoy a pleasant experience as you buy, sell, rent or lease with the help of an agent.