As a real estate agent, what if you were personally liable for the projects you sell, and if you had to refund your clients if they lost money because of your words?
We think you would not be pleased, but that’s exactly what’s happened to one agent and his real estate firm in Singapore.
Yesterday the High Court in Singapore ruled in favour of a couple who invested S$ 210,000 (THB 5.1 million).
The real estate agent was found liable for fraudulently misrepresenting the New Zealand investment that lead to the couple’s loss.
The project subsequently turned out to be what Singapore courts described as a ‘con’, with the developer never actually owning the land they were selling.
The real estate agent was found to be negligent but an earlier court deemed the individual agent could not be personally liable.
Yesterday’s decision in the High Court reversed that earlier ruling and ordered the agent to pay the losses that were suffered by the investors.
Although this was Singapore, any real estate agent should take this as yet another warning to conduct every single piece of due diligence possible before offering an investment property opportunity to clients.
In Thailand this matter would be dealt with under Consumer Protection law, and there’s no reason why the same decision couldn’t be reached if enough evidence has been kept by the investor.