PRACTICE GUIDELINES TO RAISE PROFESSIONALISM OF ESTATE AGENTS & SALESPERSONS

PRACTICE GUIDELINES TO RAISE PROFESSIONALISM
OF ESTATE AGENTS & SALESPERSONS
The Council for Estate Agencies (CEA) issued two Practice Guidelines
today to  promote ethical advertising in the real estate agency industry and to
guide the use of prescribed estate agency agreements.

(I) PRACTICE GUIDELINES ON ETHICAL ADVERTISING
2. The Practice Guidelines on Ethical Advertising provides directions and
establishes best practices on the use of advertisements for the real estate
agency industry. The guidelines were developed in consultation with estate
agents, industry associations, government bodies (eg. HDB and URA), and the
Consumers Association of Singapore.  They are applicable to all modes of
advertisements, including classified advertisements, pamphlets or flyers, online
advertising, short messaging services (SMS) and the social media.
3. With effect from 1 August 2011, misleading headlines and claims such
as “Advance loans available’, “Real Estate Specialist” and “King of X X (Name
of Estate)” will not be allowed in advertisements and publicity collaterals. Other
key points include the following:

a. Display Details of Estate Agents and Salespersons
  • Salesperson’s name, registration number and contact number
  • Estate agent’s name and licence number 2
  •  
b. Accurate Advertisement Contents
  • Basis of claims such as rates of return, yield rates, etc, must be
            indicated and substantiated
  • Accurate use of photographs
  • No abetment or suggestion to circumvent existing laws and regulations
      such as selling of HDB flats before minimum occupation period
  • Advertisements in internet postings and portals must be kept current

c. Responsible Advertising
  • SMS  text  advertisements must  provide a mobile telephone number for
      consumers to opt out of future SMS advertisements
  • No SMS advertising or cold calling after 10pm
 
d. Responsible Use of Data
  • No disclosure of transacted properties’ specific floor levels and/or unit
      addresses without client’s approval
  • Compliance  to  Terms and Conditions of usage of public (free) and
             purchased data

4. Mr Lee Say Kee, Director (Regulatory Control) of CEA and Chairperson
of CEA’s Ethical Advertising Work Group said, “Misleading and unauthorised
advertisements are among the top three categories of public complaints. To
date, we have issued 23 letters of advice to estate agents and salespersons on
such complaints.
The Guidelines will provide clarity on the do’s and don’ts of
advertising, thereby raising  professional and ethical standards in the industry.
CEA will work closely with estate agents and salespersons to implement the
Guidelines.”

(II)  PRACTICE GUIDELINES ON THE USE OF PRESCRIBED ESTATE AGENCY
AGREEMENTS FOR RESIDENTIAL TRANSACTIONS

5. The Estate Agency Agreements are standard forms prescribed in the
Estate Agents (Estate Agency Work) Regulations.  They are applicable to the
sale, purchase and lease of residential properties.

6. The Practice Guidelines is an instruction manual that explains the  key
terms in the agreements, including commission clauses, disclosure
requirements, and co-broking clauses.  It also provides guidance on the use of
the agreements.

IMPLEMENTATION OF PRACTICE GUIDELINES
7. The two Practice Guidelines will take effect on 1 August 2011.  They are
to be read with the Code of Ethics and Professional Client Care issued by CEA
last year.  Non-compliance of the Guidelines may result in disciplinary action.
Both Guidelines are available on CEA’s website www.cea.gov.sg.