Investigation underway after property agent allegedly attempts to collect commission from non-client seller.
A property agent in Singapore is under investigation after allegedly attempting to solicit a commission from a seller, Ashley Lim, who had not engaged his services. Ms. Lim, a freelance marketing consultant, was attempting to sell her parents’ five-room HDB flat in Choa Chu Kang independently, listing it on platforms like Carousell, Ohmyhome, and Facebook.
Despite the flat being privately listed, most of the inquiries she received came from property agents offering to market the flat on popular property platforms such as PropertyGuru and 99.co. These agents, while promising not to charge her, suggested collecting their commissions from buyers or inflating the asking price to pocket the difference.
Regulations in Singapore prohibit property agents from soliciting commissions from individuals who have not contracted them. Agents are also limited to representing only one party in a transaction. However, Ms. Lim found herself in a difficult situation when an agent from Huttons Asia, whom she agreed to allow to market the property, later demanded commission from her after the buyer refused to pay it. Ms. Lim rejected the request, leading to the deal falling through.
Ms. Lim lodged a formal complaint with the Council for Estate Agencies (CEA), and the CEA is currently investigating the agent’s conduct. In response, Huttons Asia’s CEO, Mark Yip, emphasized that the company does not condone any actions that breach regulations and will take action accordingly.
The CEA is investigating whether the agent breached the rules by soliciting commission from a seller he did not represent. The CEA may impose financial penalties or disciplinary actions for breaches of the Estate Agents Act, including warnings or fines of up to $5,000 for minor breaches and up to $100,000 for more serious cases.
Real estate experts emphasize the importance of transparency and clear agreements between agents and their clients to avoid such conflicts.
