By Andrew Batt:
From the start of 2014, overseas developers selling their projects through real estate agents in Singapore will need to meet additional requirements.
Singapore’s Council for Estate Agents (CEA) has published a 34-page Professional Service Manual which stipulates guidelines that Singapore’s 30,000 registered real estate agents must adhere to – some of which are new and some of which apply to overseas developers for the first time.
From January 1, 2014, Singapore agents will be required to conduct due diligence checks to protect consumer interests, and will need to ensure that foreign properties that are marketed in Singapore have obtained building plan approval from the relevant overseas authorities.
In recent years there have been several incidents where overseas developers have sold their projects to Singapore buyers and investors prior to obtaining planning consent. The consent was subsequently declined and the investors lost their deposits.
Misrepresenting the surroundings of a development in any advertising, for example by using artists’ impression and drawing open green pastures around the development when there are in fact surrounding buildings and structures near to the new development, omitting certain nearby buildings or facilities, or substantially lowering the height of nearby buildings, will also be an offence,
Any advertising which include expected capital gains or rental returns from property must also be substantiated.
Currently overseas developers can sell their own properties using their own sales staff within Singapore however the vast majority choose to work with a local agent. Real estate agents from outside Singapore must be registered with the CEA to perform any estate agency work within Singapore
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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