The Council for Estate Agencies (CEA) has charged the first agent involved in money lender referrals. Six charges were filed against 38-year old Ghazali Bin Mohamed Rasul, a registered agent with PropNex Realty who allegedly referred clients to a moneylender and received payments for it.
CEA alleged that “Ghazali introduced four clients to a licensed moneylender, AM Credit, for loans” between November 2010 and November last year.
“The clients had engaged his services separately to sell their respective HDB flats,” said CEA. Two of them borrowed S$5,000 each while another took a S$7,000 loan. For these deals, AM Credit gave Ghazali two payments of S$150.
The Estate Agents Act prohibits agents and salespersons “to introduce, refer or recommend or suggest the use of the services of any moneylender to their clients. They are also prohibited from receiving commissions, rewards, fees, payments or any benefits from any moneylender for any moneylending transaction”.
Moreover, HDB flat owners are not permitted to use their flats as security or collateral of any debt, obligation or claim as these units are “intended to be a home for owner occupation, and an asset to help meet retirement needs”.
As such, agents engaged by clients with financial needs should not involve themselves with moneylending activities conducted by either licensed or unlicensed moneylenders.
Purnima Shantilal, Director (Licensing & Investigation) at CEA, said: “Estate agents and salespersons may have obtained confidential information from their clients in the course of acting for them, such as knowledge about their clients’ financial needs. They should handle such information responsibly and act in the interest of their clients.”
“CEA does not condone any collusion with moneylenders or involvement in moneylending activities by estate agents and salespersons.”
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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