Property agents may 'borrow' transactions to meet new requirement for registration renewal, despite the rules

Property agents in Singapore may be tempted to "borrow" transactions from inactive agents to meet the new requirement for registration renewal, which mandates completing at least three transactions over three years starting from 2027. Some agents informed CNA that they could submit a transaction under an inactive agent's name, even though the agent was not directly involved in the deal.

The inactive agent would then transfer the commission to the actual agent involved. This practice could undermine the Council for Estate Agencies' (CEA) efforts to ensure property agents stay updated with current knowledge and provide accurate advice to clients, according to an expert. Currently, about 40% of property agents registered with CEA since 2023 have not completed the required transactions within the preceding three years.

Most of the eight agents CNA spoke to anonymously admitted to being aware of this practice and acknowledged that it could serve as a workaround when the requirement becomes effective next year. The CEA stated that it would recognize one agent per side of a transaction – one for the buyer or tenant, and one for the seller or landlord.

Agents pointed out that proving who played a significant role in the transaction can be challenging due to team dynamics, with senior agents potentially assisting junior members. While some suggested this practice could be allowed, it is technically not permitted. Instead, agents can pass a refresher examination to maintain their registration eligibility.