| Practice Directions for Estate Agents (Individuals) |
|
|
|
| I.
Introduction II. Practice Directions
III. Code of
Ethics |
|
|
|
| Part I. Introduction |
| 1.1
Purpose |
|
|
These Practice
Directions and the Code of Practice ("PDC") are issued by the Estate Agents
Authority ("EAA") for the purpose of providing guidance and directions to
practitioners of the estate agency trade in the conduct of their work after the
implementation of the licensing system on 1st January, 1999. |
|
|
| 1.2
Application |
|
1.2.1 |
The PDC applies
to all licensed estate agents and salespersons under the EAO. |
|
1.2.2 |
Licensed estate
agents who are individuals employed or carrying on business should observe and comply
with the directions in Part II herein and the Code of Ethics in Part III herein. |
|
1.2.3 |
Whilst the
provisions of the PDC are not legally binding, many provisions herein have identical or
similar provisions in the EAO and its subsidiary legislation the breach of which may
subject a licensee to criminal sanctions and/or disciplinary actions. Further, any
breach of the PDC may be taken into consideration when the EAA considers the licensee's
application for the renewal of licence. |
|
1.2.4 |
The PDC will be
updated from time to time to give guidelines of good practice in areas of estate agency
work to the licensees. |
| 1.3
Interpretation |
|
1.3.1 |
Except as
otherwise provided herein, words and expressions used in the PDC shall have the same
meanings as in the EAO and its subsidiary legislation. |
|
1.3.2 |
A reference to a
gender shall include the opposite and the neuter gender. A reference to the singular
mode shall include the plural and vice versa. |
|
1.3.3 |
The directions
herein relating to the provisions in the EAO are for reference only. In case of any
discrepancy between the two, the provisions of the EAO shall prevail. Practitioners
should consult the EAO for details of the provisions. For ease of reference, the
relevant section number(s) of the EAO and/or the Estate Agents (Licensing) Regulation
("EA(L)R") relevant to any part or parts of a direction is/are given in
parentheses after such direction. |
|
|
|
| Part II. Practice Directions |
|
2.1 |
A licensed estate
agent should observe and comply with the EAO, its subsidiary legislation, the PDC, and any
other Practice Directions and/or Codes to be issued by the EAA from time to time. |
|
2.2 |
An estate agent
should have a valid estate agent's licence issued by the EAA to do estate agency work.
(s. 15(1), EAO) |
|
2.3 |
A licensed estate
agent should comply with all the conditions on his licence. (s.
27(2)(f), EAO) |
|
2.4 |
A licensed estate
agent should notify the EAA on the change of his registered address within 14 days of such
change. (s 14(3)(a), EAO) |
|
2.5 |
A licensed estate
agent should apply to the EAA as soon as is practicable for the replacement of his licence
if it is lost, stolen, damaged, or destroyed. (s. 11, EA(L)R) |
|
2.6 |
An estate agent
should cease doing any estate agency work once he is notified by the EAA that his licence
has not been granted or renewed, or has been suspended or revoked, as the case may be.
(s. 15(1), EAO) |
|
2.7 |
If his
application for the grant or renewal of a licence is refused by the EAA, or if his licence
is revoked by the EAA, an estate agent should not apply again before the expiration of 12
months from the date of such refusal or revocation, as the case may be.
(s. 25, EAO; s. 15, EA(L)R) |
|
2.8 |
A licensed estate
agent should apply for the renewal of his licence not more than 3 months and not less than
1 month prior to the expiration of such licence unless the EAA has given prior written
consent to a shorter period within which the application for renewal of licence should be
made. (s. 13, EA(L)R) |
|
2.9 |
A licensed estate
agent should identify to his clients his status as an estate agent in the course of doing
estate agency work. He should carry a staff identification document when at work for
such purpose and for inspection by the EAA. |
|
2.10 |
A licensed estate
agent should learn and prepare for the obtaining and provision of the property information
to be prescribed under section 36(2) of the EAO and the use of the standard forms (estate
agency agreements, property information form, and vendor's statement) when details of the
same have been made available by the EAA.. |
|
2.11 |
When he receives
moneys for or on account of a client, a licensed estate agent should use the moneys or any
part thereof for making payments to his client or as his client directs. He should
repay such moneys or any balance thereof when he is instructed by his client to do so.
(s. 43, EAO) |
|
2.12 |
A licensed estate
agent should cooperate with the EAA's inquiry and investigation, answer questions and/or
give statements if required, present himself for interviews and/or hearing if necessary,
furnish his licence and/or other documents in his control, custody or possession, and
maintain confidentiality in respect of such inquiry and investigation.
(s. 28, EAO) |
|
2.13 |
A licensed estate
agent should notify the EAA when he ceases to be engaged in estate agency work within 31
days of his ceasing to be so engaged in Form 1 here. (s. 40(1),
EAO) |
|
2.14 |
A licensed estate
agent should notify the EAA when he becomes or ceases to become a partner of a partnership
engaged in estate agency work within 31 days of his becoming or ceasing to become such a
partner in Form 2 herein. (s. 40(5), EAO) |
|
2.15 |
A licensed estate
agent who carries on the business of an estate agency, either as sole proprietor or in
partnership, should :- (a)
have a valid statement of particulars of business issued by the EAA for each place of
business under a particular business name and display the statement of particulars of
business at a conspicuous place of each of such places; (ss. 10(1)
and 14(1)(a), EA(L)R)
(b) in case of changes in any particulars of his business apply for
corresponding amendments in the relevant statement of particulars of business;
(s. 14(1)(e), EA(L)R)
(c) apply for the replacement of any statement of particulars of
business that is lost, stolen, damaged, or destroyed; (s. 11,
EA(L)R)
(d) ensure that each of the principal office and other branch office(s),
if any, is under the effective and separate control of himself or a manager appointed by
him who must be a licensed estate agent; (s. 38, EAO)
(e) ensure all existing and prospective employees have valid estate
agents' or salespersons' licences, as the case may be, and specify, assign and supervise
their works accordingly; (s. 39,EAO)
(f) notify the EAA when he employs or ceases to employ a person as a
salesperson within 31 days of such employment or cessation of employment in Form 3 herein;
(s. 40(2), EAO)
(g) notify the EAA when he appoints or terminates the appointment of a
manager within 31 days of such appointment or termination of appointment in Form 4 herein,
(s. 40(3), EAO)
(h) open and maintain a trust account at a bank in Hong Kong licensed
under the Banking Ordinance (CAP. 155) for the deposit and safe custody of client's
moneys; and
(i) state clearly and conspicuously on any letter, account, receipt,
pamphlet, brochure and other documents as well as all advertisements issued by him or on
his behalf the following:-
(i) his name;
(ii) his licence number;
(iii) the business name as stated in the relevant
statement of particulars of business; and
(iv) the place of business as stated in the relevant
statement of particulars of business (except for advertisements). (s. 14(1)(b), (c),
EA(L)R) |
|
|
|
| Part III. Code Of Ethics |
| 3.1
Compliance with the law |
|
3.1.1 |
Estate agents and
salespersons shall refrain from undertaking any activities during their practice which may
infringe the law. |
| 3.2
Good understanding of related legislation and requirements |
|
3.2.1 |
Estate agents and
salespersons should be fully conversant with the Estate Agents Ordinance, its subsidiary
legislation, this Code of Ethics and the Practising Regulations and other guidelines
issued by the EAA from time to time and shall comply with them in the course of their
practice. |
|
3.2.2 |
Estate agents and
salespersons should keep themselves informed of any laws, Government regulation, essential
facts and developments in the real estate market in order to be in a position to advise
their clients in a responsible manner. They should strive to provide services and
opinions based on knowledge, training, qualifications and experience in real estate
business. |
| 3.3
Professional knowledge and competence required from estate agents |
|
3.3.1 |
Estate agents and
salespersons shall, in their course of business, provide services to clients with honesty,
fidelity and integrity. They should protect their clients against fraud,
misrepresentation or any unethical practices in connection with the real estate
transactions. |
| 3.4
Ethical and moral standard of estate agents during practice and their responsibilities
towards their clients |
|
3.4.1 |
Estate agents and
salespersons, in engaging and accepting an appointment as an agent, should protect and
promote the interests of their clients, carry out the instructions of the clients in
accordance with the estate agency agreement and act in an impartial and just manner to all
parties involved in the transaction. |
| 3.5
Exercising due diligence |
|
3.5.1 |
Estate agents and
salespersons shall, in fulfilling their duties, exercise due care and due diligence. |
| 3.6
Minimizing any conflict of interests situations |
|
3.6.1 |
Estate agents and
salespersons should avoid undertaking to provide services concerning a property in which
they have a beneficial interest. |
|
3.6.2 |
Estate agents and
salespersons shall, in the event of possible/potential conflict of interest (such as in
the case of representing both the vendor and the purchaser), disclose to their clients
that they are so acting and that any pecuniary or other beneficial interests in relation
to the property shall be disclosed fully to all parties concerned. |
| 3.7
Relationship between estate agents and ethical standards to be observed in conducting the
business |
|
3.7.1 |
Estate agents and
salespersons shall not seek unfair advantage over, nor injure directly or indirectly the
reputation of, nor publicly disparage the business practice of other agencies. |
|
3.7.2 |
Estate agents and
salespersons should avoid any practice which may bring discredit and/or disrepute to the
estate agency trade |
|
3.7.3 |
Estate agents and
salespersons should adhere to the principles of promoting competition and refrain form
restrictive business practices. |
|
|
|
