SINGAPORE — A real estate agent is under investigation after allegedly trying to solicit commission from the seller of a Housing Board resale apartment he did not represent.

The seller, independent marketing consultant Ashley Lim, was trying to help her parents sell their five-room apartment in Choa Chu Kang herself by listing it on online marketplaces Carousell, Ohmyhome and Facebook.

But more than 40, or the vast majority, of the inquiries she received were requests from real estate agents wanting to market her apartment on PropertyGuru and 99.co, popular real estate platforms that allow listings only by agents.

They promised not to collect commission from her.

Some agents said they would collect that amount from the buyers they introduced to him, while others asked Lim to increase his asking price so they could pocket the difference.

Regulations state that agents are not allowed to solicit payments from people who have not retained their services. They are also authorized to represent only one party in a transaction (either the buyer or the seller).

But Lim’s situation reflects how fierce competition in the real estate market pushes some agents to navigate ethical minefields in order to capture property listings and commissions.

Lim eventually agreed to allow an agent from Huttons Asia to market the apartment on PropertyGuru and 99.co. He told her that he would collect his commission from the possible buyer of the apartment.

But when a potential buyer refused to pay him a commission, the agent turned to Lim.

Lim, 40, refused and the agent withdrew from the deal, causing the deal to fall through.

“It’s frustrating because we were negotiating the sale price with the buyer and I thought we were close to closing the deal,” she said, adding that she initially agreed the agent’s request because she thought it would be a “win-win situation”.

She then filed a complaint with the Council of Real Estate Agencies (CEA).

Huttons Asia’s agent declined to comment when contacted by ST.

Huttons Asia managing director Mark Yip said the company does not tolerate the actions of sellers who do not comply with rules and regulations, and will not hesitate to take action against those who break the rules .

Asked by The Straits Times, a CEA spokesperson said it was “investigating a complaint filed by a property seller against a real estate agent in relation to the marketing of an HDB resale flat”.

“Although not representing the seller, the agent allegedly attempted to solicit a commission from the seller in exchange for introducing a potential buyer to the seller. The CEA is investigating the agent’s conduct,” he said. -she declared.

She added that the CEA takes seriously real estate agencies or agents who do not act responsibly and professionally, and that enforcement action will be taken against those who break the rules.

For minor infractions of the Real Estate Agents Act, the CEA can issue a letter of warning or impose financial sanctions of up to $5,000 on the defaulting real estate agent.

Serious cases will be referred to a disciplinary committee, and the real estate agent and agency may have their registration or license revoked or suspended. Real estate agents can face a fine of up to $100,000 per case, and real estate agencies up to $200,000.

Thomas Tan, managing director of Singapore Realtors Inc, who trained future agents under the Real Estate Salesperson (RES) course from 2011 to 2021, said Lim’s case showed how important it is for agents to ‘be transparent and upfront about who they represent.

“The agent and client must agree on the representation before proceeding – this is covered in the RES course,” he said. “Each party must set their boundaries transparently: the agent wants to receive a commission and the seller does not want to pay any fees. From the start, expectations did not match.”

Professor Sing Tien Foo, chair professor of real estate at NUS Business School, said agents should act in the best interests of their clients, whether the buyer or the seller.

Referring to HDB’s own resale listing portal, which allows flat sellers and buyers to transact directly with each other without agents, he said the service could minimize such conflicts and “serve as an alternative channel to connect buyers and sellers.

ST reported in June that HDB had warned real estate agents against approaching flat sellers through the resale listings portal to offer their services.

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This article was first published in Strait Times. Permission required for reproduction.