A registered real estate agent was fined for mentoring an unregistered colleague through a S$900,000 property deal, breaking Singapore's estate agent registration rules.
KEY POINTS
IN SIMPLE TERMS
A property agent tried to help a new recruit by guiding him through a property sale, but the recruit wasn't officially registered yet. Both agents got fined because only registered agents are allowed to handle property deals in Singapore.
WHY IT MATTERS
WHERE DO YOU STAND?
Should mentoring an unregistered agent through a property deal remain illegal, even if no fraud or harm occurred?
👍 👎 Vote ↓A real estate agent’s attempt to mentor a new recruit led to legal trouble and fines for both parties.
In a recent article by CNA, a real estate agent’s attempt to help a new recruit backfired, resulting in fines for both parties.
Spencer Ng Boxiong, 32, from ERA Realty Network, was fined S$8,000.
He helped Benjamin Chang Yongxie, 33, who didn’t have proper registration, with a S$900,000 condo sale.
Chang got a bigger fine of S$21,600 for his part in the deal.
| What Happened? |
|---|
| Spencer Ng Boxiong, a registered ERA property agent at ERA Realty Network, mentored Benjamin Chang Yongxie, who was preparing to become a registered agent. |
| Chang informed Ng that he had passed the CEA examination in September 2021 but had not yet obtained his registration. |
| Ng provided guidance and advice to Chang on facilitating property purchases, despite knowing that Chang was not yet registered. |
| Chang represented his two friends and their friend in purchasing a condominium unit at Symphony Suites for S$900,000. |
| Chang contacted Irene, the seller’s agent from PropNex Realty, and agreed to share her commission equally. |
| Ng encouraged Chang throughout the transaction process and reminded him to aim for a five-figure commission. |
| Ng and Chang met Irene to finalise the transaction, with Ng signing off as the purchaser’s salesperson on behalf of ERA. |
| Chang obtained his registration on 3 November 2021, after the transaction was completed. |
| Irene lodged a complaint with CEA after realising that Chang had facilitated the transaction before being registered. |
According to CNA, Ng’s lawyers said, “The accused’s chief fault lay in failing to respect the sanctity of the RES registration system amidst his zealousness to inspire and show the ropes to Chang.”
This quote shows that Ng’s intentions were good, but he broke the rules.
The Estate Agents Act says unregistered people can’t help with property deals.
Breaking this rule can lead to serious punishment.
The selling agent, Irene from PropNex Realty, reported the problem to CEA in March 2022.
This started an investigation into what happened.
The investigation led to fines for both parties, issued by a court.
Even after getting fined, both Ng and Chang are still working as ERA property agents with ERA Realty Network.
This case shows why following rules in real estate is very important.
New agents must wait until they are properly registered before doing any work.
Experienced agents should not help unregistered people with property deals.
It’s crucial to respect the registration system, even when trying to help others.
Always check if someone is registered before working with them on property deals in Singapore.
Should mentoring an unregistered agent through a property deal remain illegal, even if no fraud or harm occurred?
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