Property agent fined for failing to report suspicious transaction over purchase of new condominium unit

SINGAPORE: A property agent was fined S$12,000 on Wednesday (Dec 1) for failing to flag a suspicious transaction after a buyer used cash to try and buy a new condominium unit.

PropNex Realty's Charles Tan Chun Peng failed to make a report even after learning that the buyer was accused of using proceeds from criminal activities to pay for the unit, TODAY reported.

It was later discovered that the buyer was an undischarged bankrupt. 

Tan, 42, pleaded guilty on Wednesday to one count of not making a suspicious transaction report and another of holding money on behalf of the condominium developer. A third similar charge was taken into consideration for sentencing.

The case goes back to October 2016 when Tan conducted a viewing of a show flat for a father and his family.

The father decided to purchase a unit with his son and pay a 5 per cent booking fee of S$44,300, said the Council for Estate Agencies (CEA) in a media release.

However, when the booking fee was due to be paid, the father informed Tan that he could only pay the fee in cash as he did not have a bank account, CEA said.

They accepted Tan's offer to issue a cheque for the payment and the father handed over S$11,000 in cash at the show flat. Tan deposited the money into his bank account the next day, said CEA.

Tan later went to the father’s residence where he was handed a red plastic bag containing S$32,300 in cash. The agent used his personal funds to cover the shortfall of S$1,000. According to TODAY, Tan later collected the S$1,000 from the man's son. 

"Tan also deposited the S$32,300 cash into his bank account and later handed over a cheque for S$44,300 which he issued to the developer as payment of the booking fee on the purchasers’ behalf," said CEA.

A few days later, Tan was informed by the father’s ex-wife that he was an undischarged bankrupt, while the son was below 21 years old and therefore not eligible to buy property in Singapore.

She requested that the purchase be made void and the booking fee refunded to the purchasers, CEA said, adding that the developer later issued the refund in full.  

According to the TODAY report, the ex-wife told Tan that the man runs illegal gambling dens and had been in jail several times.

During investigations, Tan admitted that he found it suspicious that the man had such a large sum of cash when he was an undischarged bankrupt, said the report. He also admitted suspecting that what the man's ex-wife said could be true. 

In its media release, CEA stressed that property agencies and agents are not allowed to handle transaction funds for or on behalf of any party in the sale or purchase of property in Singapore and the lease of HDB property. 

“This regulation is to protect consumers’ interests," said CEA.

"If agencies or agents handle transaction monies, they may compromise the integrity of the transaction and put their clients at risk especially if they misappropriate the money or convert the money for their own use.”

CEA also advised consumers not to hand transaction funds to their property agencies and agents or make such requests to them.

Additional reporting by Natasha Ganesan.