Paper 2 · Section 3.2

Role of Salesperson & CEPCC

Last reviewed: · Verify policy details against official sources before exam.
Personal study notes. Not professional, legal, financial, tax, or investment advice. Verify all rules and rates against the official Singapore agency (CEA, IRAS, HDB, URA, MAS, SLA, CPF Board) before relying.

Duties · Advertising Rules · Conflict of Interest · Documents · Client Monies · Dispute Resolution

1What is the CEPCC?

The Code of Ethics and Professional Client Care (CEPCC) is the First Schedule of the Estate Agents (Estate Agency Work) Regulations 2010 (subsidiary legislation under EAA 2010). It sets out the standards of professional conduct and client care that licensed estate agents and registered salespersons must observe — covering advertising, conflicts of interest, document handling, client monies, and communications.

Violations of CEPCC result in administrative penalties only — Letter of Censure, Suspension, or Revocation. No jail time for CEPCC violations alone.

2Advertising Rules

Full Promotional Materials

(flyers, social media posts, banners)

Must include ALL 5:

  • Your name
  • Mobile number
  • CEA registration number
  • Agency name
  • Agency licence number

Classified Ads (text only)

(newspaper classifieds, SMS-style listings)

Need only 2:

  • Your name
  • Mobile number

Other Advertising Rules

  • No calls or SMS between 9pm and 9am
  • No dummy ads — do not advertise a property that is not actually available
  • Photos must be from the actual unit — no using other units' photos
  • Remove ads immediately once property is no longer available
  • Minimum font size: 8pt for all advertising
  • Do NOT advertise industrial property as "office/business" — use correct approved use description

3Conflict of Interest — Must Disclose in Writing

An RES must proactively disclose any conflict of interest before starting work, in writing, and obtain the client's written consent. Conflicts include:

  • !Referral fees from banks (mortgage referral commission)
  • !Co-broking fees received from other agents
  • !Co-broking with another salesperson from the same agency or team
  • !Receiving gifts related to the transaction
  • !Selling client's property to your own relatives or friends
  • !Buying or selling your own property (cannot remain anonymous)
  • !Husband and wife both being RES in the same co-broking deal

Process: Disclose → Written Consent → Then Proceed

Disclose the conflict in writing BEFORE commencing work. Get the client's written consent. Only then may you continue.

4Handling Documents & Client Monies

Document Handling Rules

  • Fill in ALL blanks before asking client to sign
  • ALL property owners must sign (not just one)
  • Give client a copy immediately after signing
  • Give client adequate time to read before signing
  • Explain terms if client asks

Client Money Rules

  • No blank cheques — never accept a blank cheque from client
  • No moneylending or helping clients arrange loans to pay service fees
  • Communicate ALL offers — verbal and written — to client
  • Cannot unilaterally reject any offer on client's behalf

5Dispute Resolution

MethodCostLegally Binding?Setting
Negotiation (direct)CheapestNoPrivate
Mediation (SMC)ModerateNo (unless agreement signed)Private
Arbitration (SIArb)ExpensiveYesPrivate
Litigation (Courts)Most expensiveYesPublic

3.2★Verifying Property Details — INLIS, REALIS & HDB InfoWEB

Salespersons must use available resources to verify ownership details, encumbrances, and property information before acting for clients.

ResourceFull NameWhat It Provides
INLISIntegrated Land Information Service (SLA)Title search: ownership, encumbrances (mortgages, caveats, charges), land area, tenure
REALISReal Estate Information System (URA)Transaction data: past sale prices, rental transactions, project details for private properties (paid annual subscription — trade professionals only)
HDB InfoWEBHDB's online portalHDB flat details: owner info, ethnic quota, MOP status, resale transaction history

Statutes & Regulations RES Must Stay Current On2027 · Explicit list · 3.3.5

The 2027 syllabus explicitly lists the legislation an RES must be conversant with. Examiners may quote any one of these statute titles — you should be able to identify what each governs and when it affects a transaction.

Statute / RulesWhat it governs
Building Maintenance & Strata Management Act 2004 (BMSMA)Management Corporations, by-laws, general meetings, lot improvements, SP contributions, MC information disclosure (S27, S32, S37, S40, S47)
Conveyancing and Law of Property (Conveyancing) Rules 2011Conveyancing Accounts — how solicitors handle transaction monies
Estate Agents (PMLPFTF) Regulations 2021Customer Due Diligence, beneficial ownership, suspicious indicators, STR filing
Housing and Development Act 1959 (H&D Act)HDB flats — sale, lease, pledging (S58), public housing policy
Housing Developers (Control & Licensing) Act 1965 + RulesSale of uncompleted private residential — sale/no-sale licence, standard OTP & S&P, payment schedule
Immigration Act 1959Verifying tenant immigration / employment status before leasing
Land Acquisition Act 1966State's power to compulsorily acquire land
Land Betterment Charge Act 2021 (LBCA)LBC payable on enhanced land use / intensification (replaces Development Charge from 2022)
Land Titles (Strata) Act 1967 (LTSA)Strata titles, collective sale (en-bloc), Strata Titles Boards
Oaths and Declarations Act 2000Penalty for false declaration of transaction prices (false stat dec)
Personal Data Protection Act 2012 (PDPA)Collection / use / disclosure of personal data; Do Not Call (DNC) Registry
Planning Act 1998 + Planning RulesLand-use zoning, change of use, Written Permission (URA)
Residential Property Act 1976 (RPA)Foreign ownership restrictions on landed / restricted residential
Sale of Commercial Properties Act 1979 (SCPA) + RulesSale of uncompleted commercial — analogous to HDCLA but for commercial
State Lands Protection Act 20222027Protection of State land from unauthorised use, occupation, structures and damage — see dedicated section below
Estate Agents Act 2010 (EAA) + RegulationsMaster regulator framework — see Section 1 of this page

State Lands Protection Act 2022 (SLPA)2027 · New Act

The State Lands Protection Act 2022 (passed 30 Nov 2022, assented 27 Dec 2022) consolidates and modernises the law protecting State land from unauthorised use, occupation, damage, and unlawful structures. It replaces the State Lands Encroachments Act 1883. It is administered by the Singapore Land Authority (SLA). The Act is explicitly listed in the 2027 syllabus — RES must recognise the title and the scope.

What SLPA Covers

Unauthorised occupation of State land — squatting, illegal encroachment by neighbouring owners
Unauthorised structures on State land — illegal extensions, fences, sheds, plantings
Damage to State land — vandalism, dumping, unauthorised excavation, environmental harm
Enforcement powers — SLA may issue notices to remove structures, restore land, and prosecute offenders
Penalties — fine up to S$50,000 and/or imprisonment up to 6 months for unauthorised activities on or damage to State land; cost of restoration recoverable from the offender

⚠ RES practice point

When marketing landed properties near State land (e.g. road reserves, drainage reserves, vacant State land boundaries), check for unauthorised extensions, fences, or sheds that encroach on State land. Buyers inherit the encroachment risk and may face SLA enforcement notices post-completion. Disclose if visible.

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Section Quiz

3.2 — Role of Salesperson & CEPCC

10 questions · 90 seconds each · exam-style difficulty

Rules: Time runs out → question is marked wrong. Read carefully — options are designed to trap you.