XN000022-1994-01-04 — Page 2

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TUESDAY, JANUARY 4, 1994

ROLE AND OBLIGATIONS OF ESTATE AGENTS DISCUSSED

* * *

THE

WORKING GROUP ON REGULATION OF ESTATE AGENTS (TUESDAY) EXAMINED THE ROLE AND OBLIGATIONS OF ESTATE AGENTS IN KONG AND ENDORSED SOME SHORT-TERM SOLUTIONS TO EXISTING IDENTIFIED IN THE TRADE.

TODAY

HONG

MALPRACTICES

MOST

IN THE SECOND MEETING, THE GROUP AGREED IN PRINCIPLE THAT ESTATE AGENTS' PRIMARY ROLE IS TO ACT AS MIDDLEMEN BETWEEN VENDORS AND PROSPECTIVE BUYERS IN PROPERTY TRANSACTIONS.

AN ESTATE LEGISLATION

IN ORDER TO AVOID ANY AMBIGUITY ABOUT AND ABUSE OF AGENT'S ROLE AS A MIDDLEMAN, THE GROUP PROPOSED THAT SHOULD PROVIDE THAT A PERSON WHO PLAYS SUCH A ROLE SHOULD IN FUTURE BE CONSIDERED AS AN AGENT FOR BOTH THE VENDOR AND PURCHASER.

ALSO DISCUSSED THE DUTIES OF AN

ESTATE

AGENT AND ESTATE AGENTS

THE GROUP AGREED THAT THE FOLLOWING OBLIGATIONS FOR PRACTISING SHOULD BE LAID DOWN FOR FUTURE DISCUSSIONS ON A LEGISLATIVE FRAMEWORK:

* TO BE A FIT AND PROPER PERSON, WITH NO CRIMINAL RECORD

FRAUDULENT OR DISHONEST OFFENCE;

FOR

*

ΤΟ REPORT AND PRESENT TO THE PROSPECTIVE PURCHASER BEST OF HIS OR HER KNOWLEDGE THE ESSENTIAL INFORMATION ABOUT THE PROPERTY TRANSACTION; AND

TO THE

TO DISCLOSE FULLY HIS OR HER INTEREST INCLUDING AND PROFITS IN THE TRANSACTION,

COMMISSIONS

INTERMEDIARY SUCH AS IT ALSO GIVES

THE WORKING GROUP NOTED THAT ALTHOUGH THE PRESENT SYSTEM IN PROPERTY TRANSACTION HAS A NUMBER OF ADVANTAGES, SPEEDING UP THE TRANSACTION IN A COST-EFFECTIVE WAY, RISE TO THE FOLLOWING MALPRACTICES BY UNSCRUPULOUS ESTATE AGENTS:

ENGAGING CONFIRMORS

TO POCKET THE DIFFERENCE

BETWEEN THE

A

OFFERING PRICE AND THE ASKING PRICE;

TAKING ADVANTAGE OF THEIR DOUBLE AGENCY ROLE BY OFFERING

SELLER HAS FLAT ΤΟ A BUYER AT A PRICE HIGHER THAN WHAT A ASKED FOR;

ACCEPTING COMMISSION ILLEGALLY BY REFERRING HIS CLIENTS TO A SOLICITOR, A BANK OR AN INSURER;

MAKING MISREPRESENTATION TO INDUCE A PROSPECTIVE MAKE A WRONG DECISION ON THE TRANSACTION;

BUYER TO

EXPLOITING THE PRESENT SITUATION OF UNCLEAR OBLIGATION LEADS

TO COMPLAINTS

IRRESPONSIBLE ACTS.

ABOUT POOR QUALITY

OF

THAT

SERVICE

AND

THE

CONSUMER

AS A SHORT-TERM SOLUTION, THE WORKING GROUP ENDORSED THAT

THE AND INDEPENDENT COMMISSION AGAINST CORRUPTION (ICAC) COUNCIL SHOULD STEP UP PUBLICITY TO INCREASE PUBLIC AWARENESS OF THESE MALPRACTICES WITH ADVICE ON HOW TO AVOID THESE PITFALLS.

/THE GROUP