Releasing this figure for the first time to Channel NewsAsia, the Council for Estate Agencies (CEA) stressed that housing agents are also not allowed to work with moneylenders - legally or otherwise.
It used to be a common industry practice for moneylenders to work closely with housing agents.
A person in debt will be offered a quick loan and then persuaded to sell his house to pay back the money owed.
In some cases, the moneylender and the housing agent executing the deal was the same person.
PropNex CEO Mohd Ismail said: "The motive of many of these moneylenders then was not the primary real estate business, but more of to get as many clients to take their loan because it is relatively lucrative. And in a way, they were quite secured, because for all the moneylending businesses they carried out, they used the HDB property in a way as a form of collateral."
When the estate agency watchdog was set up in October 2010, all housing agents were required to register with the council before they could continue practising.
A background check revealed that nine property agents were previously convicted of illegal moneylending activities which immediately disqualified them as fit and proper agents.
Under new rules, an agent cannot hold a moneylender licence, or work for one, to prevent a conflict of interest.
Yeap Soon Teck, Deputy Director of Licensing at CEA, said: "A salesperson who works for sellers must act in the best interest of the seller. That is why he should not work with another party or collaborate with another party. Because by doing that, he may not get the best price for the seller, or may lengthen the resale process to get more interest for the moneylender."
The industry watchdog said it will not hesitate to take errant agents to task.
Mr Yeap said: "Salespersons working with moneylenders is a very serious issue, and cannot be tolerated. We will spare no effect in investigating such cases, and we will not hesitate to prosecute such salespersons who are involved in such cases in court."
Since the Estate Agents Act was introduced in 2010, the law is now harsher on housing agents who get involved with moneylenders.
Introducing or recommending a client to a moneylender can be considered an offence. If found guilty, a housing agent can be fined up to S$25,000 or jailed up to a year.
Agents found to have acted against the interest of the sellers may also be fined up to S$75,000, or have his registration suspended or revoked.
www.channelnewsasia.com/stories/singaporelocalnews/view/1185193/1/.html
No comments:
Post a Comment