Property agent who sold HDB flat and rented it out to others gets $4,000 fine, licence revoked for 4 months

A buyer was met with an unpleasant surprise when he discovered that his purchased HDB flat had been rented out to another family.

According to a report by 8world, the previous owner of the HDB unit approached a property agent in Oct 2021 to sell or rent his home. He reached an agreement with the agent on Oct 10 that year to sell the unit, with a commission equal to two per cent of the transaction price.

The following month, the owner accepted a $340,000 offer by a buyer.

Before the Option to Purchase was signed by said buyer, a tenant reached out to the agent and expressed his interest in renting the flat.

The agent informed the tenant that the owner was selling the unit and so could only rent it out for four months. The two parties reached a four-month lease agreement.

According to 8world, after the owner and the tenant signed the lease, the tenant paid a deposit of $1,700 and a monthly rent of $1,700. At the same time, the agent was given a commission of $700.

The tenant moved into the home with his family on Nov 23, 2021, but the buyer who was interested in purchasing the house had signed the lease on Nov 28 and was waiting for HDB to approve the purchase.

When the buyer first inspected the house, he was not aware that the flat had also been rented out, according to the report. It was not until his inspection on Feb 26, 2022, that he saw another family living there.

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After completing the transaction procedures, the buyer informed HDB that there were tenants living in the unit, and the authorities requested the previous owner to move the tenants out immediately so that the buyer could move in.

The tenants reportedly vacated the unit nine days later, though they left their furniture and personal belongings behind, which took the buyer several days to clear.

The property agent was subsequently fined $4,000 and had his licence revoked for four months for violating HDB regulations.

According to HDB's website, flat owners must rent an HDB flat for a minimum of six months and are not allowed to rent out their flat on a short-term basis, as it may "disrupt the living environment and pose security concerns for residents".

All tenants must also be approved by HDB.

syarifahsn@asiaone.com

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