Estate Agents (Dispute Resolution Schemes) Regulations 2011

THIRD SCHEDULE

Regulations 5 and 6

Terms and Conditions of the Council for
Estate Agencies Mediation-arbitration Scheme

1. In the Council for Estate Agencies Mediation-Arbitration Scheme, a relevant dispute between the parties shall first be resolved in the following manner:

The CEA Mediation Sub-scheme

(a)

The parties shall proceed to mediation at an approved mediation centre selected in writing by the client (referred to in this Schedule as the selected approved mediation centre), unless the client elects in writing not to mediate.

(b)

The selection of the selected approved mediation centre by the client shall be irrevocable.

(c)

In relation to the relevant dispute —

(i)	the client may make a written request to the licensed estate agent to proceed to mediation at the selected approved mediation centre. Upon receipt of such request, the licensed estate agent shall proceed with the mediation at the selected approved mediation centre; or
(ii)	the licensed estate agent may ask the client in writing whether he elects to mediate or not and for the approved mediation centre selected by the client. If the client does not reply or does not expressly make any election in writing within 3 weeks after receipt of such enquiry, he shall be deemed to have elected in writing not to proceed to mediation.

(d)

The client shall select the selected approved mediation centre and inform the licensed estate agent in writing of his selection within 4 weeks from the date of the request referred to in sub-paragraph (c)(i) or the date of the election referred to in sub-paragraph (c)(ii), as the case may be.

(e)

The appointment of the mediator shall be in accordance with the rules of the selected mediation centre.

The CEA Arbitration Sub-scheme

(f)

If the relevant dispute remains outstanding for any reason whatsoever, including the following:

(i)	the client has elected not to mediate;
(ii)	the client fails to select the selected approved mediation centre and inform the licensed estate agent of his selection within the period specified in sub-paragraph (d); or
(iii)	the relevant dispute is for any reason not resolved by mediation within 6 weeks from the date of a written notification from the selected approved mediation centre informing the parties of the date of the first mediation session, or such longer period as the parties may mutually agree,

the relevant dispute shall be referred to and finally resolved by arbitration in Singapore at an approved arbitration centre selected by the client (referred to in this Schedule as the selected approved arbitration centre) by an arbitrator, unless the client elects in writing not to arbitrate.

(g)

The selection of the selected approved arbitration centre by the client shall be irrevocable.

(h)

The licensed estate agent may ask the client in writing whether he elects to resolve the relevant dispute by arbitration or not and for the approved arbitration centre selected by the client. If the client does not reply or does not expressly make any election in writing within 3 weeks after receipt of such enquiry, he shall be deemed to have elected in writing not to resolve the relevant dispute by arbitration and neither party shall be bound to proceed to arbitration.

(i)

The arbitrator shall be appointed in accordance with the rules of the selected approved arbitration centre.

(j)

Where the relevant dispute is referred to arbitration by, or with the consent of the client, the arbitration shall proceed and the arbitrator may make an award based on the evidence before him for the purpose of resolving the relevant dispute notwithstanding the failure of the licensed estate agent or the relevant registered salesperson to participate in the arbitration proceeding. This shall be without prejudice to the power of the Council to take the necessary action against such licensed estate agent or registered salesperson under section 66(3) of the Act.

(k)

If arbitration proceedings at the selected arbitration centre are not commenced by the client within 3 weeks after the date of the reply or election referred to in sub-paragraph (h), as the case may be, the licensed estate agent shall not be bound to proceed to arbitration thereafter.

2. The Council for Estate Agencies Mediation-Arbitration Scheme shall not apply to a dispute other than a relevant dispute.

3. A person who has presided as a mediator over a mediation proceeding of a dispute resolution proceeding shall not preside as an arbitrator over an arbitration proceeding of the same dispute resolution proceeding.

4. Subject to paragraph 5, nothing in these Regulations shall oblige a client to resolve a relevant dispute by way of the Council for Estate Agencies Mediation-Arbitration Scheme and the client may commence an action against a licensed estate agent in relation to the relevant dispute in court.

5. Where a client commences an action in court against a licensed estate agent in relation to a relevant estate agency agreement, the client shall not require the licensed estate agent to resolve any relevant dispute, whether arising from such relevant estate agency agreement or other relevant estate agency agreement, by way of the Council for Estate Agencies Mediation-Arbitration Scheme.

6. A licensed estate agent who is a party to a dispute resolution proceeding shall comply with the following rules which the Council may, in such manner as it considers appropriate, issue or approve —

(a)	the rules governing the mediation processes at the selected approved mediation centre; and
(b)	the rules governing the arbitration processes at the selected approved arbitration centre.

7. Subject to paragraph 8, a licensed estate agent who is a party to a dispute resolution proceeding shall bear the following costs:

(a)	50% of the mediation fees incurred for the mediation proceeding conducted at the selected approved mediation centre;
(b)	50% of the deposit as may be required by the selected approved arbitration centre for the arbitration proceeding; and
(c)	such percentage of the arbitration fees as may be ordered by the arbitrator of the arbitration proceeding, which shall not be less than 50% of the arbitration fees.

8. Where the parties to a dispute resolution proceeding comprise more than one licensed estate agent, the licensed estate agents shall bear the costs referred to in paragraph 7 equally or in such proportion as may be determined by the arbitrator.

9. Subject to paragraphs 10 and 11, a client who is a party to a dispute resolution proceeding shall bear the following costs:

(a)	50% of the mediation fees incurred for the mediation proceeding conducted at the selected approved mediation centre;
(b)	50% of the deposit as may be required by the selected approved arbitration centre for the arbitration proceeding; and
(c)	such percentage of the arbitration fees as may be ordered by the arbitrator of the arbitration proceeding, which shall not be more than 50% of the arbitration fees.

10. Where the parties to a dispute resolution proceeding comprise more than one client, the clients shall bear the costs referred to in paragraph 9 equally or on such proportion as may be determined by the arbitrator.

11. In the event the arbitrator finds a claim, defence or counterclaim made by a client to be frivolous, vexatious or an abuse of process, he may order the client to bear more than 50% or up to 100% of the arbitration fees.

12. For the avoidance of doubt, the arbitrator of an arbitration proceeding shall not award any costs against any party other than the arbitration fees.

13. A licensed estate agent who is a party to a dispute resolution proceeding shall be represented by a person authorised to make decisions on behalf of the estate agent in the conduct of any dispute resolution proceeding.

14. Any party may be represented by his counsel in any dispute resolution proceeding.

15. A licensed estate agent who is party to a dispute resolution proceeding shall comply with any settlement agreement entered into pursuant to a mediation or with any award that may be made in an arbitration, as the case may be, under the Council for Estate Agencies Mediation-Arbitration Scheme.

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