Paper 2 · Regulation
CPD & Professional Indemnity Insurance for RES
Must-know for the exam
- After registration a salesperson must keep competency current through CPD and the estate agency must carry professional indemnity insurance; both are compliance points.
- A registered salesperson must earn CPD credits each year as a recurring renewal condition; falling short can cause registration renewal to be withheld.
- CPD is split into Professional Competency (PCC) credits for technical, practice-specific topics and Generic Competency (GCC) credits for broader professional skills.
- There is a minimum in each of PCC and GCC plus an overall minimum; exact credit figures change, so the current CEA requirement should be confirmed.
- Credits are earned through CEA-recognised courses and activities, and the salesperson and their agency must track and keep records of credits earned.
- An estate agency, not the individual salesperson, must maintain professional indemnity insurance as a condition of its licence.
- PI insurance covers claims arising from the agency's estate agency work, such as losses from a negligent act, error or omission by the agency or its salespersons.
- PI insurance protects consumers as a source of compensation and the agency against claim costs, which is why the Council for Estate Agencies (CEA) makes it mandatory at renewal.
- Individual salespersons are covered under the agency's policy and are not required to buy their own PI insurance.
Getting registered is not the end of it — a salesperson must keep their competency current and their agency must carry insurance. Both are compliance points the exam likes to test. (Exact credit figures change, so confirm the current CEA requirement.)
Continuing Professional Development (CPD)
- A registered salesperson must earn CPD credits each year to be eligible to renew their registration — miss the requirement and renewal can be withheld.
- CPD is split into Professional Competency (PCC) credits — technical, practice-specific topics — and Generic Competency (GCC) credits — broader professional skills; there is a minimum in each plus an overall minimum.
- Credits are earned through CEA-recognised courses/activities; the salesperson (and their agency) must track and keep records of the credits earned.
Professional Indemnity (PI) insurance
- An estate agency (not the individual salesperson) must maintain professional indemnity insurance as a condition of its licence.
- PI insurance covers claims arising from the agency's estate agency work — e.g. losses from a negligent act, error or omission by the agency or its salespersons.
- It protects consumers (a source of compensation) and the agency (against the cost of claims) — which is why CEA makes it mandatory at renewal.
The trap
CPD is a renewal condition, not a one-off — and it has a PCC + GCC split, not just a single total. And PI insurance is an agency-level requirement, not something each salesperson buys individually.
Exam takeaway
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Practise exam-style questions on Regulation — with instant answers and explanations.
Practise Regulation questions →Exam-style questions on this topic
- RES exam question on Regulation & the CEA Framework: A salesperson's annual registration comes up for renewal
- RES exam question on Regulation & the CEA Framework: A salesperson checks what his registration actually requires of him
- RES exam question on Regulation & the CEA Framework: activities constitutes "estate agency work" requiring CEA registration
- RES exam question on Regulation & the CEA Framework: A newly licensed agency is setting up and registering its salespersons
- RES exam question on Regulation & the CEA Framework: A newly registered salesperson considers his obligations
Common questions
- What happens if a salesperson doesn't meet the annual CPD requirement?
- Their registration renewal can be withheld — CPD is a condition of renewing, so falling short of the required credits (including the PCC and GCC minimums) can stop them from continuing to practise until it's met.
- Who must hold professional indemnity insurance — the agent or the agency?
- The estate agency. PI insurance is a licensing condition at the agency level, covering claims arising from the estate agency work of the firm and its salespersons; individual salespersons are covered under the agency's policy, not required to buy their own.
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