The Disciplinary Committee suspended an estate agent's licence for a period of six months for failing to honour a promise of cash incentive that was made to the client.

The estate agent was working for an agency company that was appointed by a developer to promote the sale of units in a new development. In April 2000, the agent offered to provide to a customer a cash incentive equivalent to 1.5% of the purchase price if the customer, after being shown flats in the development, were to purchase one through the agent's company. The agent also promised that the cash incentive would be paid to the customer four or five months after her company had received the commission from the developer. Relying on the agent's promise, the customer entered into a provisional agreement for sale and purchase in respect of a property in the development. Both the agent and the customer returned to the agent's office where the customer was given a document signed by the agent recording the said promise. However, as it turned out, the customer did not receive the cash incentive as promised despite repeated requests and demands.

At the inquiry hearing before the Disciplinary Committee, the agent argued that she had not promised any cash incentive to the customer. She claimed that the document was intended to record an introduction to the customer of a bank offering a cash incentive of 1.5% in respect of mortgage loans. The agent explained that she had by mistake put down the incentive as 1.5% of the purchase price, whereas it should have been 1.5% of the mortgage loan.

After careful consideration of the evidence presented and the submissions made by the parties at the inquiry hearing, the Committee decided that the agent's explanation could not be believed. The Committee observed that the trade's reputation was adversely affected by such an incident and that the agent's conduct rendered her not a fit and proper person to hold an estate agent licence. In view of the agent's misconduct, it was ordered that her licence be suspended for a period of six months.