SINGAPORE — A former Propnex Realty property agent was on Wednesday (Sept 14) slapped with the maximum fine of S$10,000 for handling money meant to pay for a public housing unit on his client’s behalf, a sum he used to settle his debts.

The transaction amount of S$93,000 was the largest a property agent has handled among the 17 agents that the Council for Estate Agencies (CEA) has prosecuted since 2010.

Under the Estate Agents Act, it is against the law for property agents or agencies to handle transaction money meant for the sale and purchase of properties here or for the lease of Housing and Development Board (HDB) property on any party’s behalf.

In January last year, Goh Chung Yong, 48, received S$93,000 from his client, who was told by him that it was meant for the conveyancing lawyers, to complete the purchase of the client’s flat in Yishun.

Goh then used the money to pay off debts that he owed to loan sharks.

It was not until about a month later that the lawyers contacted the homebuyer, informing him that he had to foot the amount to complete his purchase on March 13. The lawyers told the buyer that they did not receive the S$93,000 that he had entrusted to Goh.

A complaint was lodged with Propnex, and the property agency advanced the S$93,000 to the buyer. It also asked the HDB to extend the deadline until March 27 for the purchase to be completed.

At first, Goh lied to Propnex that he could not hand over the cash to the lawyers because it had been stolen from his car, but he later admitted that he had used the cash to settle his own debts.

Goh repaid the amount to Propnex after he received money from the sale of his own condominium unit.

The CEA had harsh words for Goh, saying that his case was “aggravated” because his failure to hand over the cash had “betrayed the trust that his client placed (in) him”.

Besides lying to Propnex, he had also caused his client “tremendous stress” since the client had to postpone the completion of his flat’s purchase.

Saying that the regulation was meant to protect consumers because agents or agencies could put them at risk if they misappropriate money meant for their transactions, the CEA advised consumers against handing such money to these parties or requesting that they handle their money.