Debated in Parliament on 7 Nov 2023.
Miss Rachel Ong asked the Minister for National Development whether there will be a review of the penalties imposed on real estate agents who market or sell HDB flats that do not fulfil the minimum occupation period, such as to make the fine comparable to the commission potentially gained from selling such flats or to include other non-financial deterrent penalties.
The Council for Estate Agencies (CEA) takes a serious view of errant behaviour by property agents and has strengthened its disciplinary framework when the amendments to the Estate Agents Act came into force on 30 July 2021. The maximum financial penalty that CEA's Disciplinary Committee (DC) may impose on errant agents for serious disciplinary breaches was raised from $75,000 to $100,000.
When determining the appropriate penalties to be meted out, the DC considers all relevant facts and circumstances of the case, including the potential commission earned, the extent of the agent's culpability and whether there are other aggravating or mitigating factors.
For property agents who breach HDB's minimum occupation period (MOP) rules when facilitating HDB property transactions for their clients, the DC not only censures and imposes financial penalties on the agents, but also suspends the agents' registrations. This is a strong deterrent, as the agents cannot earn any commission since they are not allowed to conduct estate agency work when suspended.
CEA has no plans to review the penalties for breaches of MOP rules at this juncture.
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