XN000022-1995-11-17 — Page 11

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Bill to establish Estate Agents Authority

The Governor-in-Council has approved that legislation be introduced into the Legislative Council to set up an independent Estate Agents Authority (EAA) to regulate the trade with a licensing system.

The proposed regulatory system will improve the standard of service provided by the trade and give greater protection to consumers involved in property transactions. Under the Estate Agents Bill 1995, all estate agents and salespersons must obtain a licence from the EAA in order to practise.

An estate agent's licence may be granted to an individual or a company operating an estate agency business in Hong Kong, including those engaged in buying, selling and leasing of properties on behalf of others. A salesperson's licence may be granted to a person who performs estate agency work as an employee of a licensed estate agent.

The Secretary for Housing, Mr Dominic Wong, said today (Friday): "Licensing will be introduced in a gradual and planned manner to ensure that it will not cause unnecessary anxieties in the trade and disruption of service to the public.

"Initially the EAA will issue transitional licences to practising agents and their employees, subject to compliance of some basic and minimum requirements. There will be sufficient time for them to meet the full licensing requirements set by the EAA."

Mr Wong noted that under the proposed legislation, his approval will be required for the licensing requirements prescribed by the EAA and for arrangements to regulate the conduct and practice of estate agents.

Apart from operating as a licensing authority with the power to grant, revoke or suspend licences, the other primary functions of the EAA will be as follows:

* to investigate complaints and conduct inquiries;

to take disciplinary action;

✦ subject to the agreement of both parties, to settle disputes relating to the

payment of commission or fees between a licensed estate agent and a client;