Consequences of Refusing Co-Broking & Misleading Advertising

Unprofessional Behaviour in Real Estate

A real estate salesperson was disciplined for two serious breaches of professional conduct:

1. Failure to co-broke — declining collaboration with another licensed colleague despite being aware of the colleague’s involvement and interest.

2. Misleading advertisement — intentionally entering incorrect address details, providing a false listing to prospective buyers.

The disciplinary outcome was a $14,000 fine and 7-month suspension for breaching the Code of Ethics and Professional Client Care (CEPCC), specifically failing to act fairly, breaking commitments, and making inaccurate advertising representations.

Expert Analysis & Industry Impact

• Ethical obligations: Licensed professionals must be open to co-broking arrangements if another colleague has introduced a buyer. Refusing such collaboration unfairly excludes legitimate parties and breaches industry ethics.

• Transparency & trust: Misleading clients with false property information damages trust and diminishes the reputation of the profession.

• Enforcement & deterrence: Heavy fines and suspensions are strong reminders that unethical behaviour will not be tolerated. These disciplinary actions also serve as a deterrent for others who may consider similar conduct.

Incident Breakdown

• The agent ignored multiple requests from another salesperson who had a ready buyer.

• He listed a property with an intentionally incorrect address.

• He conducted private viewings directly with the buyer without informing the co-broking salesperson.

• Despite verbal commitments to “settle” co-broking arrangements later, no action was taken.

• A complaint was filed, leading to disciplinary investigation and penalties.

Scenario Examples

Scenario 1: Entrenched Competition

Agent X lists a property. Agent Y brings a buyer. Agent X deliberately avoids Agent Y, conducts private viewings, and changes listing details.
Outcome: Sanctions for dishonesty and unethical exclusion.

Scenario 2: Broken Commitment

Agent A promises another agent a share of commission but later refuses to honour it, insisting the buyer was “direct.”
Outcome: Penalty for misrepresentation and failure to uphold fair conduct.

Scenario 3: Unintentional Error vs. Intentional Misrepresentation

Agent B mistakenly enters the wrong postal code, immediately corrects it, and informs all parties.
Outcome: No disciplinary action, as the error was corrected transparently.
In contrast, intentional misrepresentation leads to heavy punishment.

Best Practices for Real Estate Professionals

• Acknowledge co-broking requests promptly and communicate transparently.

• Ensure accuracy in advertisements: Verify postal codes, unit numbers, and property details.

• Document commitments: Written agreements protect all parties.

• Maintain professionalism: Respond courteously and on time.

• Follow through on promises: Upholding integrity builds trust.

• Keep proper records: Emails, chat logs, and agreements form accountability.

• Stay trained and updated: Regular CEPCC training ensures compliance.

Comparison: Ethical vs. Unethical Conduct

Benefits of Ethical Conduct

• Enhanced reputation as a trusted professional.

• Lower regulatory risk by staying compliant.

• Stronger networks and referrals through collaboration.

• Increased client loyalty and retention via transparency.

• Contribution to industry integrity by elevating professional standards.

Frequently Asked Questions (FAQ)

1. What constitutes co-broking?
   Collaborating with another licensed agent who introduces a buyer or seller, with an agreed commission split.

2. Is co-broking mandatory?
   While not legally mandatory, refusal without fair justification may breach ethical codes.

3. How can inaccurate listings be avoided?
   Always verify details before publishing, and correct errors immediately.

4. What penalties apply for misconduct?
   Fines, suspension, or even license revocation, depending on severity.

5. Can an agent refuse co-broking if the buyer contacts them directly?
   Only if justified transparently. Otherwise, excluding another legitimate agent may breach ethics.

6. Do co-broking agreements need to be written?
   Written agreements are strongly recommended for clarity and protection.

7. What rules govern property advertisements?
   Ads must be accurate, truthful, and authorised by property owners or sellers.

8. Can honest mistakes in advertisements be forgiven?
   Yes, if corrected promptly and transparently. Intentional misrepresentation is punishable.

9. How should one respond to co-brokers?
   Acknowledge promptly, be respectful, and maintain professional communication.

10. What if the co-broker is unresponsive?
    Document all communication attempts before proceeding further.

11. Are verbal commitments binding?
    They are binding in principle, but written records provide stronger protection.

12. Can penalties be appealed?
    Yes, through established regulatory appeal processes.

13. How can agents stay updated on rules?
    Attend industry training, workshops, and review regulatory updates.

14. Do these breaches affect only agents?
    No, they impact buyers, sellers, agencies, and overall industry trust.

15. Can ethical conduct be a competitive edge?
    Yes, ethical agents build stronger reputations, earn more referrals, and reduce risks.

Key Takeaways

• Co-broking must be handled fairly and professionally.

• Property advertisements must always reflect accurate information.

• Commitments and agreements should never be ignored.

• Professional integrity is a long-term investment that protects both clients and agents.

• Ethical conduct is not just a rule—it is a business advantage.

https://www.cea.gov.sg/about-cea/newsroom-publications/ceanergy-blog/fined-14-000-and-received-7-months-suspension-for-refusing-to-co-broke-a-property-transaction

Algene Toh

Senior Real Estate Salesperson

Asset Investment Brokers Pte Ltd

Email: admin@bsr2.com

Phone: +65 9008 8002

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