⚖️ Industry Regulation, Professional Ethics, Role of Salespersons and PMLPFTF Obligations

1. What are the two main aims of the regulatory framework set up under the Estate Agents Act 2010 (EAA)?

1. To raise professional standards in the industry and protect consumers
2. To control property prices and limit purchases by foreign buyers
3. To set commission rates and settle every fee dispute between parties
4. To license property developers and approve the sale of new launches

The EAA protects consumers' interests and raises the professionalism of the real estate agency industry; the syllabus describes a framework that raises professional standards and safeguards consumer interests. Price and foreign-buyer controls are cooling measures and Residential Property Act matters, developers are licensed under the Housing Developers (Control and Licensing) Act, and the CEA does not set commissions. (CEA, Legislation page; RES Examination Syllabus 2027, Competency Unit 3 overview)

2. Who made the Estate Agents (Estate Agency Work) Regulations 2010, which contain the Code of Ethics and Professional Client Care and the Code of Practice for Estate Agents?

1. Parliament, as Schedules enacted together with the Estate Agents Act
2. The Minister for Law, on the advice of the Attorney-General's Chambers
3. The Housing and Development Board, with the concurrence of the URA
4. The CEA, with the approval of the Minister for National Development

The Regulations were made by the Council for Estate Agencies under sections 42, 44 and 72 of the EAA, with the approval of the Minister for National Development. They are subsidiary legislation, not part of the Act passed by Parliament, and every licensed estate agent and registered salesperson must comply with the CEPCC set out in their First Schedule (reg. 3). (Estate Agents (Estate Agency Work) Regulations 2010, enacting words and regs 3-4)

3. Part 2 of the Estate Agents Act 2010 establishes the Council for Estate Agencies. Which statement correctly describes the legal status of the CEA?

1. A body corporate with perpetual succession that can sue and be sued
2. A division of a Ministry, with no legal identity of its own
3. A society of property agencies whose members elect its president
4. A company limited by guarantee and owned by licensed estate agents

Section 6 establishes the Council for Estate Agencies as a body corporate with perpetual succession, capable of suing and being sued, of holding and disposing of property and of doing the other acts that bodies corporate may lawfully do. Under s.8(1), it consists of a president and not fewer than 5 nor more than 15 other members, as the Minister determines; it is not a members' association or a company owned by the industry. The Act's long title states its purpose: an enhanced framework for the regulation of estate agents and their salespersons, and the formation of the CEA. (EAA 2010, long title, ss.6 and 8)

4. Which of the following is one of the functions of the Council for Estate Agencies (CEA) under section 9 of the Estate Agents Act 2010?

1. To fix the commission rates that estate agents may charge clients
2. To develop codes of practice, ethics and conduct for the industry
3. To approve the resale price of every HDB flat sold on the market
4. To grant housing loans to first-time buyers of private property

Section 9(1) lists the CEA's functions, including administering the licensing and registration regimes, regulating the practice of estate agents and salespersons, developing codes of practice, ethics and conduct, administering examinations and conducting investigations and disciplinary proceedings. The CEA does not fix commission rates, which are agreed between agent and client, nor does it price HDB flats or grant loans. (EAA 2010, s.9(1))

5. Ms Hannah Lim, a registered salesperson, markets a condominium unit in Johor Bahru to buyers who live in Singapore. Does the Estate Agents Act 2010 apply to this work?

1. Yes, the Act applies to estate agency work for property in and outside Singapore
2. No, foreign property is regulated by the authorities of the country concerned
3. Yes, provided that the buyer is a Singapore Citizen or a Permanent Resident
4. No, the Act covers estate agency work for property situated within Singapore

Section 2 provides that the Act applies to estate agency work in respect of property situated in Singapore and outside Singapore, and 'property' in s.3(1) includes an interest in land situated elsewhere. The buyer's citizenship does not affect the scope of the Act. (EAA 2010, ss.2 and 3(1))

6. Under section 3 of the Estate Agents Act 2010, which of the following falls within the meaning of 'property'?

1. A unit in a building that is still under construction
2. A season parking permit issued for an HDB car park
3. Shares in a company listed on the Singapore Exchange
4. A movable kiosk placed in a shopping centre atrium

'Property' means an interest in land, whether in Singapore or elsewhere, that is recognised by law, and includes any building or part of a building, whether completed, being constructed or to be constructed, and a future interest in land. Company shares, parking permits and movable items are not interests in land. (EAA 2010, s.3(1))

7. Ms Farah Aziz is an advocate and solicitor with a practising certificate. In the course of her legal practice, she introduces a client who wants to sell a shophouse to another client who wants to buy one, and charges a fee for the introduction. She does no other estate agency work in the deal and holds no estate agent's licence. Which statement is correct?

1. The Act does not apply to this introduction made in her legal practice
2. She commits an offence, as any introduction for a fee requires a licence
3. She must first register as a salesperson with a licensed estate agent
4. She may act if the buyer and the seller each sign a prescribed agreement

Section 4(1)(b) excludes things done by a solicitor in the course of practising, in introducing to the client third persons who wish to acquire or dispose of a property (whether for remuneration or otherwise), provided the solicitor does no other work within the definition of estate agency work. If she went further, for example by negotiating the price, the exclusion would no longer apply. (EAA 2010, s.4(1)(b))

8. Larkspur Realty Pte Ltd wants its subsidiary company to be registered as a salesperson so that the subsidiary can earn co-broking fees. What does the Estate Agents Act 2010 provide?

1. A company may register if all its directors are registered
2. A company may register if it holds professional indemnity cover
3. Only a natural person may be registered as a salesperson
4. A company may register if a key executive officer supervises it

Section 32(1) states that only a natural person may be registered as a salesperson. A company that does estate agency work must instead hold an estate agent's licence under s.28 and appoint a key executive officer under s.38. (EAA 2010, ss.28, 32(1) and 38)

9. Mr Rajesh Nair, aged 34, passed the RES examination six months ago and has an offer from a licensed estate agent. He is an undischarged bankrupt. How does the Estate Agents Act 2010 treat him when he applies for registration?

1. He is not a fit and proper person unless the Council determines otherwise
2. He may be registered once his estate agent buys extra indemnity insurance
3. He may be registered, as bankruptcy is irrelevant to a salesperson's work
4. He may be registered if he declares the bankruptcy to each of his clients

Under s.3(2)(a)(iv), an individual who is an undischarged bankrupt is not a 'fit and proper person' unless the Council otherwise determines, and s.32(2)(c) requires the Council to consider the applicant a fit and proper person before registering him. Insurance or disclosure to clients does not cure this. (EAA 2010, ss.3(2)(a)(iv) and 32(2)(c))

10. Ms Joanne Seah is registered as a salesperson through Merbau Homes Pte Ltd. On 1 August she resigns from Merbau Homes to join Jambu Lane Realty Pte Ltd, which wants her to start taking new listings for it at once. Which statement is correct?

1. Her registration moves to Jambu Lane automatically when she resigns
2. She must be registered through Jambu Lane, on an application it supports
3. She may act for Jambu Lane at once if Merbau Homes consents in writing
4. She may act for Jambu Lane for one month while her transfer is processed

Registration is not transferable and is subject to the salesperson continuing to act for the licensed estate agent she is registered through (s.34(6)). She therefore needs a new registration, applied for through and with the support of Jambu Lane, which must certify that she meets the requirements (s.34(2)); her Merbau Homes registration does not allow her to act for Jambu Lane, and acting as a salesperson without registration is an offence (s.29). Neither the consent of her former agency nor a period of grace changes this. (EAA 2010, ss.29 and 34)

11. Which particular must the public register kept by the CEA show for every registered salesperson?

1. His NRIC number and the address of his place of residence
2. The name of the estate agent he is registered through
3. The total commission he earned in the previous calendar year
4. The names of all clients he is representing at the moment

Section 36(2)(b) requires the register to contain, for every salesperson, his name, the name of the estate agent he acts for and is registered through, the period of registration and any suspension or revocation. The register must be available for public search or inspection (s.36(5)). (EAA 2010, s.36)

12. Under section 38 of the Estate Agents Act 2010, what is the key executive officer (KEO) of an estate agent responsible for?

1. Acting as the agency's solicitor in the completion of property sales
2. Handling the clients' option fees and deposits for each transaction
3. Valuing every property before the agency is allowed to market it
4. Managing the agency's business and supervising its salespersons

An estate agent must appoint a KEO and ensure that he is responsible for the proper administration and overall management of its business and the supervision of its salespersons (s.38(1)); the KEO must be contactable by the Council and the salespersons at all reasonable times (s.38(4)). No agent may hold transaction monies (Estate Agency Work Regulations, reg. 7). (EAA 2010, s.38)

13. The key executive officer of Kenari Point Realty Pte Ltd resigns and stops carrying out his duties on 3 March. Under section 38(5) of the Estate Agents Act 2010, what must the estate agent do?

1. Notify the CEA within one month and appoint a new KEO within three months
2. Notify the CEA within one week and appoint a new KEO within one month
3. Notify the CEA within 14 days and appoint a new KEO within six months
4. Appoint a new KEO within one week; no notice to the CEA is required

When the post of KEO falls vacant through death, resignation or revocation of appointment, s.38(5) requires the estate agent to notify the Council within one week of the KEO ceasing to carry out his duties, and to appoint another KEO within one month. (EAA 2010, s.38(5))

14. A licensed estate agent ends its appointment of a salesperson. Within what period must it notify the CEA of the cessation?

1. Within 30 days, by registered post to the Executive Director
2. Within 3 months, when it next renews its estate agent's licence
3. No notice is needed, as the salesperson must inform the CEA
4. Within 7 days, using the electronic form on the CEA's website

Section 43(2) requires a licensed estate agent that ceases to appoint, associate with or employ a person as a salesperson to notify the Council within 7 days (or such other period as is prescribed). Regulations 20 and 21 of the Licensing and Registration Regulations require the notice to be given electronically within 7 days, in the form provided on the CEA website. (EAA 2010, s.43(2); Estate Agents (Licensing and Registration) Regulations, regs 20-21)

15. Under the Estate Agents (Transaction Records) Regulations 2021, which particular of a client's completed residential transaction is included in the report submitted to the CEA but is not among the particulars that may be shown in the public register?

1. The address of the property that was the subject of the transaction
2. The registration number of each salesperson who did the estate agency work
3. Whether the client acted as the purchaser, vendor, landlord or tenant
4. When the transaction was completed by the client of the estate agent

Regulation 3 lists the particulars that may be included in the public register: for an HDB flat, its HDB Town, and for other property, its postal district number and general location, but not its address. Regulation 4 lists the particulars of the report under s.43A, which include the address of the property. The client's role, the completion date and the salesperson's registration number appear in both lists. (Estate Agents (Transaction Records) Regulations 2021, regs 3-4; EAA 2010, ss.36(3)(aa) and 43A)

16. A buyer wishes to complain about the conduct of a registered salesperson. Under section 49 of the Estate Agents Act 2010, which statement is correct?

1. It must be filed with the Small Claims Tribunals, which pass it to the CEA
2. It may first be made to the Executive Director, who refers it to the Council
3. It must first be approved by the key executive officer of the salesperson
4. It is heard first by the Appeals Board, which may then refer it to the Council

Section 49(1) provides that any complaint of the conduct of a licensed estate agent or registered salesperson may in the first place be made to the Executive Director, who must refer it to the Council. The Council may require a complaint to be supported by a statutory declaration, except where it is made by a public officer (s.49(3)). The Appeals Board hears appeals against decisions of the Council or a Disciplinary Committee (s.59). (EAA 2010, s.49(1)-(3))

17. After an investigation, the Council is satisfied that there is sufficient cause for action against a salesperson for a breach unrelated to anti-money laundering rules. Without referring the matter to a Disciplinary Committee, what may the Council itself impose under section 49(6)?

1. Imprisonment of up to 6 months, or a fine of up to $10,000
2. A revocation of registration and a fine of up to $25,000
3. A financial penalty of up to $100,000 and a suspension
4. A financial penalty of up to $5,000, a censure, or both

Under s.49(6)(b), where the Council is satisfied that there is sufficient cause (other than an AML/PF/TF contravention, dealt with in s.49(6)(a)), it may impose a financial penalty not exceeding $5,000, censure the person, or both. Larger financial penalties, with suspension or revocation, are imposed by a Disciplinary Committee to which the Council may refer the matter instead (ss.49(11) and 52(3)); the Council's own power to suspend or revoke a registration comes from s.55, not s.49(6), and fines or imprisonment are imposed by a court on conviction. (EAA 2010, ss.49(6), 49(11), 52 and 55)

18. On 2 May, the Council serves written notice on Mr Daniel Ong, a salesperson, that it intends to impose a financial penalty on him under section 49(6). He wants to explain why no penalty should be imposed. The Council serves its written decision on 10 June and he does not appeal. Which statement is correct?

1. He may show cause within 21 days of notice; the decision takes effect at once on 10 June
2. He may show cause within 14 days of notice; the decision takes effect 14 days after 10 June
3. He may show cause within 7 days of notice; the decision takes effect 30 days after 10 June
4. He has no right to show cause; the decision takes effect once the CEA publishes it online

Before deciding under s.49(6), the Council must give written notice of its intention (s.49(7)); the person may show cause within 14 days after the date of the notice (s.49(8)). Subject to an appeal under s.59, the decision does not take effect until 14 days after the written notice of the decision is served (s.49(10)). The 21-day period applies to representations against a proposed suspension or revocation by the Council under ss.54-55. (EAA 2010, s.49(7)-(10))

19. The Council proposes to revoke a salesperson's registration because he no longer meets the eligibility requirements. Under section 55 of the Estate Agents Act 2010, what must happen first?

1. He is suspended at once and may appeal to the Appeals Board within 30 days
2. He gets an oral warning and 7 days to find another licensed estate agent
3. His estate agent is told to dismiss him within 14 days of the Council's decision
4. He and his estate agent get written reasons and 21 days to make representations

Under s.55(3)-(4), where the Council proposes to suspend or revoke a registration, it must give the salesperson and the estate agent he is registered through written notice of the proposal and the reasons for it, stating that written representations may be made within 21 days (or a longer period allowed). The Council must consider any representations before suspending or revoking (s.55(5)). (EAA 2010, s.55(2)-(5))

20. A Disciplinary Committee suspends the registration of Mr Kelvin Yeo for six months, and he does not appeal. During the suspension, a long-time client asks him to arrange viewings of her condominium unit and to negotiate with buyers, promising to pay him privately. What is the legal position?

1. He may act for a client he served before the suspension, if his estate agent agrees
2. He may act if the client signs a prescribed estate agency agreement with him directly
3. He must not act; while suspended he is treated as unregistered, so acting is an offence
4. He may act, because the suspension bars him from new clients rather than old ones

While a suspension order is in force, the salesperson must cease to act as a salesperson for any person (s.56(3)) and is deemed not to be registered, except for the purposes of disciplinary proceedings (s.56(4)). Acting as a salesperson while unregistered is an offence under s.29(1), punishable by a fine of up to $25,000, imprisonment of up to 12 months, or both (s.29(3)). (EAA 2010, ss.29 and 56)

21. A Disciplinary Committee orders that Ms Priya Menon's registration be suspended for three months and that she pay a financial penalty of $8,000. She gives due notice of appeal to the Appeals Board, and the Council makes no application to the Board about the appeal. Pending the appeal, which statement is correct?

1. Both the suspension and the penalty are stayed until the Appeals Board decides
2. Neither order is stayed, as an appeal does not affect a disciplinary decision
3. The penalty is stayed, but the suspension starts on the date it was pronounced
4. The suspension is stayed, but lodging the appeal does not suspend the penalty order

Section 59(3) states that lodging an appeal does not suspend the effect of the decision appealed against, subject to s.59(4): where an order revoking or suspending a licence or registration is appealed with due notice, that order is stayed pending the appeal unless the Appeals Board, on the Council's application, orders otherwise. The financial penalty order therefore remains in effect. (EAA 2010, s.59(3)-(4); s.52(9))

22. Mr Tony Chia holds no estate agent's licence and is not a registered salesperson. He advertises online that he can 'sell your condo fast', finds a buyer for a neighbour's unit and negotiates the price. The neighbour then refuses to pay the agreed fee of S$15,000. Which statement is correct?

1. He has committed no offence, because the neighbour agreed to pay him a fee
2. He may sue for the fee, but must first pay a composition sum to the CEA
3. He may recover the fee if he registers with a licensed estate agent in 7 days
4. He has committed an offence and cannot recover the fee in any action or suit

Holding oneself out to the public and acting as an estate agent without a licence is an offence under s.28(1), punishable by a fine of up to $75,000, imprisonment of up to 3 years, or both (s.28(2)). Section 28(3) adds that no fee, commission or reward for anything done in respect of the offence is recoverable in any action, suit or matter, so later registration does not help. (EAA 2010, s.28)

23. What is the maximum penalty on conviction for a person who acts as a salesperson for a licensed estate agent without being registered under the Estate Agents Act 2010?

1. A fine of up to $25,000, imprisonment of up to 12 months, or both
2. A fine of up to $75,000, imprisonment of up to 3 years, or both
3. A fine of up to $5,000, with no possibility of imprisonment
4. A fine of up to $10,000, imprisonment of up to 6 months, or both

Section 29(3) sets a maximum fine of $25,000, imprisonment of up to 12 months, or both, for being or acting as a salesperson without registration. The $75,000/3-year maximum applies to unlicensed estate agents (s.28(2)), and $10,000/6 months applies, for example, to the estate agent card offence in reg. 9 of the Estate Agency Work Regulations. (EAA 2010, ss.28-29)

24. A salesperson tells a homeowner that she acts for Senna Grove Realty Pte Ltd, a large agency, although she is registered through a different estate agent. What does section 40(3) of the Estate Agents Act 2010 provide?

1. It is an offence punishable by a fine of up to $5,000
2. It is a breach dealt with only by mediation at the SMC
3. It is permitted if the two agencies have a co-broking deal
4. It is a matter for Senna Grove to settle in a civil claim

A salesperson who makes any false representation, whether verbally, in writing or by conduct, that she is employed by or authorised to act for a specified estate agent commits an offence and is liable on conviction to a fine not exceeding $5,000 (s.40(3)). A co-broking arrangement between agencies does not authorise a salesperson to claim to act for another agency. (EAA 2010, s.40(3))

25. Ms Cheryl Lau submits a forged diploma with her application for registration as a salesperson. What is the maximum penalty on conviction for this offence under the Estate Agents Act 2010?

1. A fine of up to $20,000, imprisonment of up to 6 months, or both
2. A fine of up to $5,000 only, as no imprisonment is provided
3. A fine of up to $50,000, imprisonment of up to 3 years, or both
4. A financial penalty of up to $100,000 imposed by the Council

Section 34(7) makes it an offence for any person, in an application for registration or renewal of registration (for himself or another person), to submit false documents or make a statement that is false or misleading in any material particular; the maximum penalty is a fine of $50,000, imprisonment of 3 years, or both. The Council may also suspend or revoke a registration obtained with false or misleading information (s.55(2)(c)). Financial penalties imposed by the Council are capped at $5,000 (s.49(6)) and are not criminal penalties. (EAA 2010, ss.34(7), 49(6) and 55(2)(c))

26. Tembusu Crest Realty Pte Ltd appoints a new director but fails to notify the CEA within the period required by section 43(3) of the Estate Agents Act 2010. Section 43(6) makes this an offence without stating a penalty. Which penalty applies on conviction?

1. Only a daily fine of up to $1,000, for each day the notice is late
2. A fixed composition sum of $500 set by the Act for any late notification
3. The general penalty: a fine up to $10,000, imprisonment up to 12 months, or both
4. A financial penalty of up to $200,000 imposed by a Disciplinary Committee

Under s.64(2), a person guilty of an offence under the Act for which no penalty is expressly provided is liable on conviction to a fine not exceeding $10,000, imprisonment not exceeding 12 months, or both; the further fine of up to $1,000 a day applies only to a continuing offence after conviction and is not the whole penalty. No composition sum is fixed by the Act (s.69 only caps it), and financial penalties imposed by a Disciplinary Committee arise in disciplinary proceedings, not on criminal conviction. (EAA 2010, ss.43(3), 43(6), 64(2) and 69)

27. Angsana Quay Realty Pte Ltd let three newly registered salespersons carry out estate agency work for it for several months before any written agreement between them and the company was signed, an offence under the Estate Agents Act 2010. Its key executive officer, Mr Lim, knew of the arrangement and approved it to save on paperwork. The company is prosecuted. What is Mr Lim's position?

1. He has no liability, because the offence was committed by the company
2. He faces disciplinary action by the CEA but commits no criminal offence
3. He is also guilty of the offence, as it was committed with his consent
4. He is liable if he personally received a share of the fees they earned

A licensed estate agent must not cause or permit a salesperson to carry out estate agency work for it unless a written agreement authorises the salesperson to do so (s.41(1)); contravention is an offence (s.41(3)). Under s.68(1), where an offence committed by a body corporate is proved to have been committed with the consent or connivance of an officer, or to be attributable to the officer's neglect, the officer as well as the body corporate is guilty of the offence; 'officer' includes a key executive officer (s.68(5)(a)). Disciplinary action may follow as well, but it does not replace criminal liability. (EAA 2010, ss.41 and 68)

28. A salesperson is reasonably suspected of two offences under the Estate Agents Act 2010: offence A, which carries a maximum fine of $5,000, and doing estate agency work without a written agreement with his estate agent under section 41(2) (maximum fine $25,000). Assume both are prescribed as compoundable offences. What is the most that may be collected under section 69 to compound both offences?

1. S$10,000 in total composition sums
2. S$7,500 in total composition sums
3. S$15,000 in total composition sums
4. S$5,000 in total composition sums

Section 69(1) caps each composition sum at the lower of half the maximum fine for the offence and $5,000. Offence A: half of $5,000 = $2,500, which is lower than $5,000. Section 41(2): half of $25,000 = $12,500, capped at $5,000. Total = $2,500 + $5,000 = $7,500. $15,000 ignores the $5,000 cap; $10,000 applies the cap without halving the first fine; $5,000 applies one cap to both offences together. (EAA 2010, ss.41(3) and 69(1))

29. Mr Benjamin Tan, aged 45, is a director of Pulai Ridge Homes Pte Ltd. He has four GCE 'O' level passes, eight years of estate agency work and 35 completed property transactions in the past 3 years. He passed the RES examination in 2017 but has never sat the Real Estate Agency examination, and holds none of the degrees or diplomas listed in the First Schedule. The agency wants to appoint him as its key executive officer. Which statement is correct?

1. He qualifies now, as his transaction record replaces the examination requirement
2. He qualifies now, because he passed the RES examination before his appointment
3. He qualifies once he completes 16 CPD training hours in Prescribed Essentials
4. He must first pass the Real Estate Agency exam within 2 years before appointment

Regulation 9(1) of the Licensing and Registration Regulations requires a KEO to be the sole proprietor, a director or a partner, aged 21 or above, with 4 GCE 'O' level passes or equivalent, at least 3 years of estate agency experience, at least 30 transactions in the 3 years before appointment (or 3 years of management experience) and, subject to exemptions, a pass in the Real Estate Agency examination within the 2 years before appointment (reg. 9(1)(e)). Mr Tan meets every requirement except the examination. (Estate Agents (Licensing and Registration) Regulations, reg. 9)

30. Ms Aisha Rahman passed both papers of the RES examination in March 2024 but did not take up a job in the industry. In September 2026 she joins a licensed estate agent and applies for registration for the first time. She has four GCE 'O' level passes and no exempting degree or diploma. What is her position?

1. She must pass the RES examination again, as her pass is over 2 years old
2. She may register, because a pass in the RES examination does not expire
3. She may register after completing 16 CPD training hours for the year 2026
4. She may register if her estate agent's key executive officer approves it

Regulation 16(1)(b) requires an applicant to have passed the RES examination in the 2 years immediately before applying for registration. The exemption in reg. 16(4) covers persons who are, or were within the past 2 years, registered salespersons, KEOs or specified individuals and who kept up their CPE requirements; Ms Rahman was never registered, so CPD hours cannot replace a fresh pass. (Estate Agents (Licensing and Registration) Regulations, reg. 16)

31. Under the CEA's 2026 Continuing Professional Development (CPD) framework, how many training hours must a salesperson complete in each CPD cycle?

1. 12 hours: 6 Prescribed Essentials, 6 Professional Competencies, 0 self-directed
2. 16 hours: 8 Prescribed Essentials, 4 Professional Competencies, 4 self-directed
3. 16 hours: 4 Prescribed Essentials, 8 Professional Competencies, 4 self-directed
4. 20 hours: 4 Prescribed Essentials, 12 Professional Competencies, 4 self-directed

Every KEO, practising director or partner and salesperson must complete 16 training hours per CPD cycle: at least 12 hours of Structured Learning (including 4 hours of Prescribed Essentials and 8 hours of Professional Competencies) and 4 hours of Self-directed Learning. Each CPD cycle runs from 1 January to 31 December. (CEA, 2026 CPD Framework, para 2; Estate Agency Work Regulations, reg. 15(1))

32. Mr Kenneth Low is registered as a salesperson for the first time in April 2026. What CPD requirement applies to him for his first CPD cycle?

1. He is exempted for the first cycle and must comply from the next cycle
2. He must meet the full annual requirement within his first calendar year
3. He must complete a pro-rated share of the annual hours in that cycle
4. He must complete the Prescribed Essentials course before he may work

New salespersons are exempted from the CPD requirement for their first CPD cycle, but must comply with it for the next and subsequent cycles. (CEA, CPD Guidelines for Estate Agents and Real Estate Salespersons, para 10; CEA, CPD framework page)

33. In the 2026 CPD cycle, Ms Grace Teo completes the required Prescribed Essentials course and two accredited Professional Competencies courses with contact hours of 3.5 and 4.5 hours. She also completes 5 hours of Self-directed Learning, all duly recognised. How many more training hours must she complete before the cycle ends?

1. 1 more Professional Competencies hour
2. 4 more Professional Competencies hours
3. 1 more hour of any type, including SDL
4. None, as her total exceeds the minimum

Training hours are credited in whole hours and partial durations are rounded down: 3.5 h = 3 h and 4.5 h = 4 h, so her Professional Competencies hours are 3 + 4 = 7, one short of the 8-hour minimum. Her Prescribed Essentials and Self-directed Learning (5 h against a 4-hour minimum) components are met, but hours in one category cannot substitute for another, so the extra SDL hour does not help. (CEA, CPD Guidelines, paras 9 and 15; CEA, CPD framework page, Important Note)

34. Under the 2026 CPD framework, how are the Self-directed Learning (SDL) hours of a salesperson recognised?

1. The hours are credited when the course provider issues a bill
2. The course must be accredited by the CEA before she attends
3. Her estate agent's KEO verifies and approves the attendance
4. Her clients sign a form confirming that she attended training

Structured Learning courses (Prescribed Essentials and Professional Competencies) are accredited by the CEA, whereas attendance at Self-directed Learning courses is verified and approved by the salesperson's KEO, who assesses the relevance of the activity; SDL attendance records must be kept for 5 years. (CEA, 2026 CPD Framework, Table; CPD Guidelines, paras 7, 16-17)

35. What is the purpose of the professional indemnity insurance (PII) that every estate agent must take out and maintain while it carries out estate agency work?

1. To cover civil liability for negligence in carrying out estate agency work
2. To insure the client's property against fire and damage during marketing
3. To guarantee that the option fee is refunded if the sale falls through
4. To pay the commission owed to co-broking agents if the client defaults

Under reg. 13(2) of the Estate Agency Work Regulations, the insurance must be in respect of civil liability for negligence in the performance of estate agency work, and reg. 14 bars anyone from undertaking estate agency work without the required cover. A licence is not granted or renewed unless the PII requirements are met (Licensing and Registration Regulations, reg. 11). Candidates are not required to memorise the minimum amounts. (EAW Regulations, regs 13-14)