SINGAPORE: A property agent was fined S$5,000 on Wednesday (Dec 1) for handling his client's transaction money on behalf of a property developer for the purchase of a condominium unit.
Charles Tan Chun Peng, 42, offered to help the buyers issue a cheque for the booking fee. They would then pay him the amount in cash, said the Council for Estate Agencies (CEA) in a media release.
The case goes back to October 2016 when Tan, who is from PropNex Realty, conducted a viewing of a show flat for a father and his family.
The father decided to purchase a unit with his son and pay a 5 per cent booking fee of S$44,300.
However, when the booking fee was due to be paid, the father informed Tan that he could only pay the fee in cash as he did not have a bank account, CEA said.
They accepted Tan's offer to issue a cheque for the payment and the father handed over S$11,000 in cash at the show flat. Tan deposited the money into his bank account the next day, said CEA.
Tan later went to the father’s residence where he was handed a red plastic bag containing S$32,300 in cash. The agent used his personal funds to cover the shortfall of S$1,000.
"Tan also deposited the S$32,300 cash into his bank account and later handed over a cheque for S$44,300 which he issued to the developer as payment of the booking fee on the purchasers’ behalf," said CEA.
A few days later, Tan was informed by the father’s ex-wife that he was an undischarged bankrupt, while the son was below 21 years old and therefore not eligible to buy property in Singapore.
She requested that the purchase be made void and the booking fee refunded to the purchasers, CEA said.
The developer later refunded the booking fee in full.
Property agencies and agents are not allowed to handle transaction funds for or on behalf of any party in the sale or purchase of property in Singapore and the lease of HDB property.
“This regulation is to protect consumers’ interests," said CEA.
"If agencies or agents handle transaction monies, they may compromise the integrity of the transaction and put their clients at risk especially if they misappropriate the money or convert the money for their own use.”
CEA also advised consumers not to hand transaction funds to their property agencies and agents or make such requests to them.
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Charles Tan Chun Peng, 42, offered to help the buyers issue a cheque for the booking fee. They would then pay him the amount in cash, said the Council for Estate Agencies (CEA) in a media release.
The case goes back to October 2016 when Tan, who is from PropNex Realty, conducted a viewing of a show flat for a father and his family.
The father decided to purchase a unit with his son and pay a 5 per cent booking fee of S$44,300.
However, when the booking fee was due to be paid, the father informed Tan that he could only pay the fee in cash as he did not have a bank account, CEA said.
They accepted Tan's offer to issue a cheque for the payment and the father handed over S$11,000 in cash at the show flat. Tan deposited the money into his bank account the next day, said CEA.
Tan later went to the father’s residence where he was handed a red plastic bag containing S$32,300 in cash. The agent used his personal funds to cover the shortfall of S$1,000.
"Tan also deposited the S$32,300 cash into his bank account and later handed over a cheque for S$44,300 which he issued to the developer as payment of the booking fee on the purchasers’ behalf," said CEA.
A few days later, Tan was informed by the father’s ex-wife that he was an undischarged bankrupt, while the son was below 21 years old and therefore not eligible to buy property in Singapore.
She requested that the purchase be made void and the booking fee refunded to the purchasers, CEA said.
The developer later refunded the booking fee in full.
Property agencies and agents are not allowed to handle transaction funds for or on behalf of any party in the sale or purchase of property in Singapore and the lease of HDB property.
“This regulation is to protect consumers’ interests," said CEA.
"If agencies or agents handle transaction monies, they may compromise the integrity of the transaction and put their clients at risk especially if they misappropriate the money or convert the money for their own use.”
CEA also advised consumers not to hand transaction funds to their property agencies and agents or make such requests to them.
Continue reading...