Learning outcomes of this chapter:
- Understand the background and rationale for the enactment of Estate Agents Act (EAA) 2010 and regulations, and the formation of the Council for Estate Agencies (CEA).
- Understand provisions in EAA that concern salespersons, including:
- Principal functions and general powers of CEA
- Scope of EAA, and the meaning of property, estate agent, salesperson and estate agency work
- Licensing of estate agents and registration of salespersons; suspension and revocation of licence and registration
- Duties of salespersons
- Inspection, enforcement, discipline and offences
- Understand offences and corresponding penalties under EAA and the various Regulations, e.g. Regulation of estate agency work 5(3) where any person who contravenes paragraph (1) shall be guilty of an offence and liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both.
- Comply with the Estate Agents (Licensing & Registration) Regulations; in particular the registration requirements for salespersons, including the fulfilment of continuing professional development (CPD).
- Comply with the Estate Agents (Estate Agency Work) Regulations, including:
- Ban on dual representation
- No referrals to moneylenders
- No holding of transaction monies in cash
- Usage of council symbols and representation
- Display of estate agent card
- Use of prescribed estate agency agreements
- Professional indemnity insurance requirements
- CPD requirements
- Understand the Code of Practice for Estate Agents and describe the duties of estate agents in respect of management and supervision, estate agent card, claims and complaints, and retention of documents and records.
- Keep abreast of and comply with all applicable laws, practice circulars and guidelines in relation to estate agency work such as Professional Service Manual (PSM).
- Keep abreast of and comply with all applicable laws, practice circulars and guidelines relating to CEA’s Code of Ethics and Professional Client Care (cross-reference to PSM), including but not limited to the following:
- General duty to clients and public (include communicating all offers to clients in a timely manner, act in the best interest of clients, updating clients on development and issues pertaining to the transactions)
- Not to bring discredit or disrepute to real estate industry
- Duty in respect of agreements
- Duty in respect of advertisements (including outdoor advertising). Cross-refer to practice guidelines on ethical advertising and be conversant with the required information to include, such as salesperson’s name or business name as stated in the public register
- Recommending professional advice to clients where appropriate
- Duty to avoid conflict of interests
- Safeguarding confidential information
- Discuss the significant court prosecution and disciplinary cases related to estate agency work as reported in CEA’s website and understand what provisions of the EAA its subsidiary Regulations have been contravened.
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