Paper 2 · Ethics & Professional Conduct
The CEA Code of Ethics & Professional Client Care
Conduct is governed by the Code of Ethics and Professional Client Care, set out under the Estate Agents (Estate Agency Work) Regulations. It is not aspirational — it is enforceable, and breaches are a rich source of Section B scenarios.
Core duties of a salesperson
- Act with honesty, integrity and in the client's best interest.
- Avoid conflicts of interest (and disclose any that arise).
- Do not mislead — no false or exaggerated representations.
- Never handle or hold transaction money for the client (a salesperson must not receive it directly).
- Protect confidential information; keep proper records.
- Be competent and diligent, and keep up CPD.
Specific obligations under the PCC
- Use the prescribed estate agency agreements with clients.
- Give accurate information; do not exaggerate or make false representations.
- Recommend independent professional/legal advice where appropriate, and do not draft legal documents beyond your role.
- Disclose any conflict of interest or personal interest in the transaction.
- Handle complaints properly and avoid high-pressure / hard-sell tactics.
Mandatory vs best practice
Provisions phrased as “shall” are mandatory obligations; “should/may” signal recommended best practice. The exam deliberately tests whether you can tell a binding duty from a guideline.
Consequences of a breach
| Outcome | What it involves |
|---|---|
| Disciplinary action | CEA Disciplinary Committee inquiry |
| Financial penalty | Fine imposed for misconduct |
| Suspension | Registration suspended for a period |
| Revocation | Registration cancelled — can no longer practise |
How discipline works
A complaint or breach is investigated by CEA; a Disciplinary Committee can hold an inquiry and impose sanctions — from a financial penalty to suspension or revocation of registration. There are avenues to appeal. The point for the exam: the Code is enforced with real consequences.
Common mistakes
- Receiving or holding the client's transaction money directly — never allowed.
- Assuming disclosure cures a prohibited conflict (e.g. dual representation) — it doesn't.
- Drafting legal documents / giving legal advice beyond the salesperson's role.
- Treating the Code as optional 'best practice' rather than binding rules.
The trap
Misreading a mandatory “shall” obligation as merely recommended. The Code sets binding duties — and the most-tested one is that a salesperson must never receive or hold the client's transaction money.
Exam takeaway
Treat the Code as enforceable law, not etiquette. In a scenario, name the specific duty breached (conflict? misleading? handling money?) and the likely consequence — that's what earns the marks.
Common questions
- Is the CEA Code of Ethics legally binding?
- Yes — it sets out mandatory professional obligations under the estate-agency regulations, and breaches can result in disciplinary action against the salesperson or agency.
- What is Professional Client Care (PCC)?
- PCC is the set of standards governing how a salesperson must serve and protect clients — acting in their best interest, communicating honestly, and safeguarding their money and information.
Keep learning
Study material aligned to the public CEA syllabus. Not financial or legal advice — verify current figures with the relevant authority (IRAS, HDB, CEA, MAS).