Concrete Analysis | Hong Kong property agents mustn’t mislead buyers or face disciplinary action by watchdog

Stepping into autumn, a number of new residential properties in Hong Kong have been launched for sale by different property developers.

Participating in the sale of these first-hand properties, property agents must not make any misrepresentation to prospective buyers, or they may be disciplined by the Estate Agents Authority (EAA).

The EAA has always been concerned about the conduct of property agents in the sale of first-hand residential properties, not only at the start of the purchase process when orders are registered at the first-sale sites, but also with the information they provide to consumers. Practice guidelines have been issued to agents that they must not provide prospective buyers with false or misleading information.

The following are two cases in which property agents had breached the rules and were sanctioned by the EAA.

The first case involved two property agents (A and B) who had persuaded a prospective buyer to make a purchase in a new development. The buyer was aware that there would be another new development in front of the property he was looking at. He specifically asked agent A whether the view of flats above a certain level would be blocked by the new development. The agent told him that flats on the 25th floor and above would not be affected by the new development.

The buyer nonetheless, asked for a second opinion, posing the same question to agent B and further inquiring about the building height of the new development. Agent B said the new development would range from 16 to 30 storeys, and would not obstruct the view for flats on the 30th floor and above of the project the buyer was interested in.