Property agent fined for handling buyer's money for condominium booking fee

SINGAPORE: A property agent was fined S$5,000 on Wednesday (Dec 1) for handling his consumer's transaction money on behalf of a property developer for the acquisition of a condominium unit.Charles Tan Chun Peng, 42, provided to assist the patrons situation a cheque for the booking fee. They would then pay him the quantity in money, mentioned the Council for Estate Agencies (CEA) in a media launch.The case goes again to October 2016 when Tan, who's from PropNex Realty, performed a viewing of a present flat for a father and his household.The father determined to buy a unit along with his son and pay a 5 per cent booking fee of S$44,300.However, when the booking fee was resulting from be paid, the daddy knowledgeable Tan that he may solely pay the fee in money as he didn't have a checking account, CEA mentioned.They accepted Tan's provide to situation a cheque for the cost and the daddy handed over S$11,000 in money on the present flat. Tan deposited the money into his checking account the subsequent day, mentioned CEA.Tan later went to the daddy’s residence the place he was handed a pink plastic bag containing S$32,300 in money. The agent used his private funds to cowl 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," mentioned CEA.A couple of days later, Tan was knowledgeable by the daddy’s ex-wife that he was an undischarged bankrupt, whereas the son was beneath 21 years outdated and due to this fact not eligible to purchase property in Singapore.She requested that the acquisition be made void and the booking fee refunded to the purchasers, CEA mentioned.The developer later refunded the booking fee in full. Property companies and brokers are usually not allowed to deal with transaction funds for or on behalf of any get together within the sale or buy of property in Singapore and the lease of HDB property. “This regulation is to guard shoppers’ pursuits," mentioned CEA."If companies or brokers deal with transaction monies, they might compromise the integrity of the transaction and put their purchasers in danger particularly in the event that they misappropriate the money or convert the money for their very own use.”CEA additionally suggested shoppers to not hand transaction funds to their property companies and brokers or make such requests to them.