RES exam question on Regulation & the CEA Framework: activities constitutes "estate agency work" requiring CEA registration
XYZ Facilities Management Pte Ltd manages a condominium MCST and provides the following services: (i) collecting monthly maintenance and sinking fund contributions from subsidiary proprietors (ii) negotiating service contracts with cleaning and security vendors on behalf of the MC (iii) marketing individual units for sale and lease on behalf of unit owners for a fee (iv) preparing the annual budget and management accounts for MC approval. Which of these activities constitutes "estate agency work" requiring CEA registration?
- A(iii) only — marketing units for sale or lease for owners for a fee is estate agency work
- B(i) and (iv) only — handling owners' money and accounts for the MC is licensed agency work
- C(ii) and (iii) only — any negotiation for a fee on behalf of others is estate agency work
- DAll four — each is done for a fee in connection with a residential development
Show answer & explanation
Answer
A. (iii) only — marketing units for sale or lease for owners for a fee is estate agency work
Explanation
Under the Estate Agents Act, 'estate agency work' means doing any act or providing any service in connection with the purchase, sale, or rental of a property for a fee. Negotiating and marketing property for sale or lease on behalf of unit owners (activity iii) falls squarely within this definition and requires CEA registration. Facilities management tasks — collecting maintenance fees (i), negotiating vendor contracts for the MC's operational needs (ii), and financial reporting/budgeting for the MC (iv) — are property management functions, not estate agency work, and do not require CEA registration. A company may provide property management without a CEA licence but must hold one if it also provides brokerage/estate agency services.
Study the concept behind this question: Estate Agent Licensing vs Salesperson Registration (CEA)
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