Sell HDB BTO Before MOP: 2 Property agents fined for selling flats before MOP

Two property agents have been fined by the Council for Estate Agencies (CEA) for marketing Build-To-Order (BTO) flats that did not fulfil the five-year minimum occupation period, or MOP.

2 Property agents marketed BTOs before MOP

Ms Christina Au was fined $1,000 on Jan 18, 2023 and censured for her involvement in marketing a Housing Board flat in Yishun Street 51, while Ms Isabelle Loo was fined $500 on Tuesday, Oct 10, 2023 and censured for marketing a flat in 110A Depot Road, according to a public register of estate agents that detailed the disciplinary actions.

In a statement to The Straits Times on Tuesday, CEA said two agents had breached the Code of Ethics and Professional Client Care in failing to comply with regulations that apply to HDB flats. It did not name the agents or the agencies they work for.

The code sets out the performance standard required of estate agents and salespersons when carrying out estate agency work, and in their dealings with clients and the public.

ERA Realty Network

According to the public register on the CEA website, the two agents are from ERA Realty Network.

Property agent tried to sell before MOP

A disciplinary note on the register said Ms Au had tried to facilitate the resale of the Yishun flat despite knowing that the sellers had not physically occupied it and did not fulfil the MOP.

Property agent held viewings before MOP

Meanwhile, Ms Loo had held viewings of the Depot Road flat for prospective buyers, even though the owners were not eligible to sell the flat on the open market at the time. This was because they had “not physically occupied the flat for the duration of the MOP”, said the register.

When contacted, Ms Au and Ms Loo declined to comment.

ERA Singapore key executive officer Eugene Lim said it was “very unfortunate” that these two incidents had occurred.

“We have taken this opportunity to reinforce (our agents’) understanding of this,” he said.

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HDB BTO units were repossessed

Will be released in Sale of Balance Flats exercises

In response to queries, a spokeswoman for HDB said it had moved to repossess the Yishun and Depot Road flats, and one of them was already in its keeping.

“Investigations revealed that the flat owners had not fulfilled their MOP when they put their units up for sale on the open market,” she said.

Flats that are compulsorily acquired will be put up for sale in Sale of Balance Flats exercises.

Owners may be fined up to $50,000

For violation of MOP rules

“HDB takes the violation of MOP rules seriously and will not hesitate to carry out enforcement actions,” the spokeswoman added.

Owners who do not occupy their flats during the MOP may have their units compulsorily acquired by HDB, be fined up to $50,000, or issued written warnings.

CEA told ST that two other agents, who had marketed seemingly vacant HDB flats in Bukit Batok East Avenue 6 and Henderson Road, were found to have not breached the code.

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Unrenovated BTO units up sale

In December 2022, Straits Times reported that several unrenovated BTO flats that appeared to have never been lived in were put up for sale on property listing portals.

5-Room HDB, Yishun Street 51

This came after media outlet Mothership reported that a five-room HDB flat in Yishun Street 51 had allegedly been vacant for eight years, as the buyers had moved into their family’s landed property. Ms Au listed it on PropertyGuru with an asking price of $690,000.

3-Room HDB, 110A Depot Road

ST later reported a listing for a three-room flat in 110A Depot Road, which Ms Loo described as “never stayed in before, brand new”, with an asking price of $650,000. At the time, the unit was just over five years old.

4-Room HDB, 292B Bukit Batok East Ave 6

The listing for a four-room unit in 292B Bukit Batok East Avenue 6 showed photos of an empty kitchen and bedroom, and a toilet bowl wrapped in plastic. The agent who listed the unit had described it as a “blank canvas”. The unit, which reached its MOP in 2022, had an asking price of $688,888.

3-Room HDB, 95A Henderson Road

Another listing showed a three-room flat in 95A Henderson Road that appeared to have never been renovated, aside from lighting installed on the ceiling. It had an asking price of $750,000. A walkthrough video showed a pile of spare tiles – which HDB provides free to help owners in their renovations – stored in the unit’s household shelter.

HDB BTO MOP is 5 Years

National Development Minister Desmond Lee said then that buying a BTO flat and selling it as “almost brand new” may be a breach of HDB rules. Owners must live in their unit for the full five-year MOP before any resale.

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This article was first published in The Straits Times.