 It is no more than common sense that if you are sick, you see a doctor; if you want to go to court, you find a lawyer. However, it may not be generally known that in buying, selling or renting a property, if it is done through a third party, the entrusted person must be a licensed estate agent.
As of 1st January 1999, individuals and firms engaging in the estate agency business must hold licences, otherwise it is against the law. In the following case, a person transacted a property deal without going through a licensed person and suffered losses.
Mrs Au had a lot of friends, and she was also very fond of playing mahjong. So the mahjong table became her information exchange centre. She knew who had a flat for sale and who wanted to buy one. Then she would usually go one step further and assumed the role of an intermediary, and had successfully clinched a number of deals and made some easy money.
Recently, she helped to conclude another deal successfuly. Not long after he moved into the flat he bought, Mr Ng, the purchaser, received a notice from the management office of the building demanding a contribution towards repair of the building in tens of thousands of dollars. It turned out that an external wall maintenance project was carried out a few months before. The previous owner had not mentioned it during the course of transaction. Now that the sale of the flat was completed, Mr Ng believed that it would not get him anywhere if he tried to parley with the previous owner. When he complained to Mrs Au, she proved to be equally in the dark. There was nothing Mr Ng could do but to resign to the fate of losing tens of thousands of dollars.
The above-mentioned practice of an unlicensed person acting as an agent to earn extra income used to be quite common, especially among some night-watchmen and caretakers who, taking advantage of their positions, mediated the purchase, sale or rental of flats. But after the licensing requirement under the Estate Agents Ordinance has become effective, such practice is now against the law.
The consumer should also ascertain the status of the estate agent before proceeding with the deal. Under the Practice Regulation, an estate agent or salesperson shall inform his prospective clients the fact that he is licensed and of his licence number. If the consumer is in doubt about the status of the estate agent or salesperson, he may make inquiries at the relevant estate agency. He may also either go to the offices of the Estate Agents Authority in person or visit the website of the Authority to search, free of charge, the register containing information on licence holders.
|