| The Freshman |
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| When acting as an intermediary on line, beware of your liabilities |
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 Mr Wang was an insurance agent and also a computer buff who liked to browse the net in his spare time. Recently, he found that a real estate network was recruiting members and the terms were quite attractive. For example, if one listed a property for sale or let, or if he brought in a friend to do the same on this site, he would receive cash gifts. Mr Wang therefore registered to be a member without hesitation.
As there were some property investors among his friends and clients, Mr Wang, being a popular person, quickly brought in several property owners and purchasers and earned some extra income in the process. Through his work connections, Mr Wang regularly introduced his clients to the real estate network, from which he derived a considerable income. In time, introducing property purchasers and vendors became part of his work.
One day, a friend of Mr Wang who was an estate agent told him that in so doing, he might have violated the Estate Agents Ordinance by doing estate agency work without a licence. However, Mr Wang thought that he only introduced purchasers and vendors to the network and did not participate in the transaction of the properties, and therefore his work should not count as estate agency work.
Should Mr Wang, in so doing, be regarded as doing estate agency work? According to the Estate Agents Ordinance, the definition of estate agency work includes introducing vendors or purchasers, or landlords or tenants to clients in the course of business. As to what is meant by "in the course of business", many factors have to be taken into consideration and it also depends on the actual circumstances of each case. Generally speaking, to introduce a friend or relative once does not count as doing estate agency work in the course of business. However, if one does it regularly and is paid in the process, one is regarded as doing estate agency work in the course of business. Therefore, Mr Wang was in fact already doing estate agency work and should obtain an estate agent's licence. Otherwise he will have committed an offence under the Estate Agents Ordinance for which the maximum penalty is a fine of $500,000 and two years' imprisonment.
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