Singapore real estate agents have been ordered not to offer free gifts or cash vounchers in an attempt to lure potential clients.
The trend has caught the attention of the Council for Estate Agencies (CEA), prompting it to release a circular last week calling the practice “undesirable” and a form of cash-back.
Purnima Shantilal, Director (Licensing & Investigation) at the CEA, said they have been receiving feedback on the practice through regular dialogue sessions with the industry. She noted that offering free gifts or cash vouchers “is not in line with CEA’s goal of raising the level of professionalism in the real estate agency industry”.
A CEA circular on August 23 told all estate agents and salespersons “not to advertise or offer any free gifts, including cash or cash vouchers, to consumers or clients with immediate effect”.
Salespersons and estate agents who fail to comply could be subjected to disciplinary actions, including warnings, fines, and eventually, revocation or suspension of their licence or registration.
Jason Dorai, an agent with Dennis Wee Group, welcomed the new ruling as he believes the act of giving gifts to attract clients is “somewhat similar to bribery”.
“I believe it is fair that agents aren’t allowed to give gifts in return for engaging their services,” he said.
While these gifts have been used as a “thank you” tool by some agents, Dorai emphasised that using an agent’s services should be based on their “level of competency, professionalism and knowledge to meet the client’s needs”.
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