The Parliament has passed the Estate Agents Bill, which calls for the creation of a new statutory board, the Council for Estate Agents (CEA), to oversee the real estate industry.
National Development Minister Mah Bow Tan said the new board will start operations on October 22.
Starting 1 January 2011, all real estate agents must register with the CEA and should meet certain standards to continue their profession.
The bill comes as the government acts to address the standards of the real estate industry, which has been plagued by an increasing number of complaints against errant property agents.
It also follows a housing bill that was passed in July to close a loophole, which had enabled moneylenders to lodge caveats on HDB flats to claim a share in sale proceeds.
Among the other unethical practices seen recently as the country experienced a real estate boom is the connivance between irresponsible agents and moneylenders to mislead homeowners, said MPs.
Many MPs also raised several concerns on foreigners who operate as agents, as well as on consumer awareness and guidelines.
When asked if foreigners with no local knowledge of laws could be banned, Mr. Mah said no, as such measures will violate several free trade agreements between Singapore and its trading partners, and would be regarded as a discriminatory practice.
While foreigners can still work as real estate agents, they must qualify for a Ministry of Manpower work pass, abide by the new rules and, under the new bill, must register with an agency.