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RES exam question on Regulation & the CEA Framework: Kelvin is a salesperson registered through Agency A

HardRegulation of the Estate Agency Industry · Paper 2

Kelvin is a salesperson registered through Agency A. PropFind Pte Ltd, a company with no estate agent licence, markets flats online for a commission and offers Kelvin $1,000 for each buyer he brings to its listings. Kelvin thinks his own registration covers the arrangement. (i) The arrangement is lawful because Kelvin, who would do the actual work, is a registered salesperson. (ii) PropFind commits an offence by acting as an estate agent without a licence. (iii) PropFind cannot recover by legal action any fee for estate agency work done while unlicensed. (iv) Kelvin may take part if Agency A agrees in writing and receives a share of each fee. Which of the statements is/are correct?

  1. A(ii) only
  2. B(ii) and (iii) only
  3. C(i), (ii) and (iii) only
  4. D(ii), (iii) and (iv) only
Show answer & explanation

Answer

B. (ii) and (iii) only

Explanation

Answer: (ii) and (iii) only. PropFind is acting as an estate agent without a licence, and Kelvin's registration cannot cover work for anyone but Agency A.(ii) True. No one may act as an estate agent unless licensed. The penalty is a fine of up to $75,000, imprisonment of up to 3 years, or both.(iii) True. No fee for estate agency work done while unlicensed is recoverable.Rule: Only a licensed estate agent may act as an estate agent, and an unlicensed one cannot recover its fees. A salesperson is registered through one licensed estate agent and may not act for more than one.Source: Estate Agents Act 2010 (EAA), s 28(1), s 28(3) and s 40 (sso.agc.gov.sg, current version at 1 Oct 2026)

Why the other options are wrong

  • (i) False. Kelvin's registration does not license PropFind, and it does not authorise him to work for anyone other than Agency A.
  • (iv) False. Agency A's consent and a fee share cannot make PropFind a licensee or bring its listings within Agency A's licence.

Study the concept behind this question: Estate Agent Licensing vs Salesperson Registration (CEA)

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