Dennis Wee Realty hit by $66k fine, banned from selling overseas property

Keshia Faculin7 Dec 2017

Dennis Wee Realty (DWR) has been prohibited from marketing or transacting foreign properties until 24 November 2018 and is required to pay a fine of $66,000, announced the Council for Estate Agencies’ (CEA) Disciplinary Committee on Wednesday (6 December).

“This is the largest fine meted out so far to a property agency for failing to abide by the regulations related to estate agency work involving foreign properties,” said CEA in a statement.

DWR was convicted of six charges under paragraph 16 of the Practice Guidelines for Estate Agents and Salespersons Marketing Foreign Properties (PGMFP). It states that estate agents appointed by a developer must provide a written advisory to clients that they should conduct due diligence. They also need to highlight the risks involved in purchasing offshore properties, such as the fact that these deals are subject to foreign laws.

In 2014, DWR locally marketed units at the Ibis Budget Hotel in Lymm and Ibis Budget Hotel in Knutsford, both in the UK. The agency had exclusive rights to sell these properties in Singapore. A unit at the Knutsford project was sold for £82,500 (approx. $169,645), while that in the other went for £82,500 (about $169,645).

In the same year, six sets of investors, including one who acted on behalf of his firm, purchased five units in the Knutsford project and 13 units in the Lymm project. Collectively, they paid £1,641,000 (around $3,374,400) in booking fees and as full payment for the units to the UK developers via DWR.

The investors were promised returns ranging from eight to 12 percent for the first three years. Thereafter, the developers guaranteed to buy back the units at a premium of nine to 20 percent over their purchase price.

The six investors received monthly returns for periods ranging from one to six months before payments stopped. Then in early-2015, the developers — Hotel Options (Lymm) Limited and Hotel Options (Knutsford) Limited — went into administration.


This article was edited by Keshia Faculin.


You may also like these articles

CEA regulations cause industry shake-up

Real estate companies in Singapore are jostling for the best property agents as a result of the enforcement by the new regulatory body, the Council for Estate Agencies (CEA). New rules state that agen

Continue Reading10 Dec 2010

Idle developers in China banned from land auction bids

The Ministry of Land and Resources will prevent some companies from acquiring more land in future auctions after several of their sites went undeveloped.The ministry highlighted 26 undeveloped sites o

Continue Reading4 Jan 2011

More stringent home-buying regulations for Beijing

In an attempt to rein in the overheating real estate market, Chinese authorities have banned the local government from selling land above record highs.The Ministry of Land and Resources also said it w

Continue Reading15 Mar 2011