RES exam question on Regulation & the CEA Framework: Mdm Lim believes her agency overcharged her $4,500 in commission under the estate agency…
Mdm Lim believes her agency overcharged her $4,500 in commission under the estate agency agreement she signed. The agency's KEO suggests the matter can go through CEA's Dispute Resolution Scheme, and Mdm Lim reads up on how the scheme works before deciding. (i) If she starts the scheme, the agency and its salesperson must take part in it. (ii) In mediation the mediator helps, but Mdm Lim and the agency decide the outcome themselves. (iii) She must attempt mediation before she may take the dispute to arbitration. (iv) The scheme also covers a co-broking dispute between two agencies over a commission split. (v) An arbitrator's award under the scheme binds both Mdm Lim and the agency. Which of the statements is/are correct?
- A(i), (ii) and (v) only
- B(i), (ii), (iii) and (v) only
- C(ii), (iv) and (v) only
- D(i), (iii) and (v) only
Show answer & explanation
Answer
A. (i), (ii) and (v) only
Explanation
Answer: (i), (ii) and (v) only. The agency must take part once she starts, mediation outcomes are the parties' own, and an arbitral award binds both.(i) True. If the client starts the scheme, the estate agent and salesperson must take part.(ii) True. The mediator facilitates, but the parties decide the outcome.(v) True. Arbitration ends in an award that binds both parties.Rule: CEA's Dispute Resolution Scheme resolves client-versus-agency disputes under an estate agency agreement by mediation or arbitration. The agency must take part if the client starts it, and arbitration need not wait for mediation.Source: Estate Agents (Dispute Resolution Schemes) Regulations 2011; CEA, Dispute resolution (cea.gov.sg, read 26 Sep 2026); /learn/cea-licensing-vs-registration
Why the other options are wrong
- (iii) False. Mediation is not a compulsory first step. A consumer can choose arbitration after writing to the agency.
- (iv) False. The scheme is client against agency, resting on an estate agency agreement. It does not cover co-broking disputes between agencies or salespersons.
Study the concept behind this question: Estate Agent Licensing vs Salesperson Registration (CEA)
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