RES exam question on Regulation & the CEA Framework: require a licence
XYZ Facilities Management Pte Ltd is the managing agent of a condominium and offers the following services for fees. It holds no estate agent's licence and asks which services would require one, with the work done by registered salespersons. (i) Collecting monthly contributions to the management fund and sinking fund from the subsidiary proprietors. (ii) Negotiating cleaning and security contracts with vendors on behalf of the management corporation. (iii) Marketing individual units for sale or lease for their owners, and negotiating with buyers and tenants. (iv) Preparing the annual budget and management accounts for approval at the annual general meeting. (v) Arranging contractors to repair the lifts and coordinating the works with residents. Which of the following would require a licence?
- A(iii) only
- B(i) and (iii) only
- C(ii) and (iii) only
- DAll of the above
Show answer & explanation
Answer
A. (iii) only
Explanation
Answer: (iii) only. Only marketing units and negotiating sales and leases for owners is estate agency work; the other services involve no dealing in property.(iii) True. It introduces buyers and tenants and negotiates sales and leases for owners, which is estate agency work.Rule: Estate agency work is work for a client, in business or for a fee, introducing a third person who wishes to acquire or dispose of property, or negotiating an acquisition or disposition, a lease included. Doing it as a business needs a licence and individuals doing it for an agency need registration; managing agents have no licence of their own.Source: Estate Agents Act 2010 ss 3(1), 28 and 29; Building (Strata Management) Act 2004 (BSMA) s 66; current versions at 1 Oct 2026 (sso.agc.gov.sg)
Why the other options are wrong
- (i) False. Collecting contributions involves no acquisition or disposition of property.
- (ii) False. Cleaning and security contracts are service contracts, not dealings in property.
- (iv) False. Preparing the budget and accounts involves no acquisition or disposition of property.
- (v) False. Arranging lift repairs involves no acquisition or disposition of property.
Study the concept behind this question: Estate Agent Licensing vs Salesperson Registration (CEA)
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