Concrete Analysis | Hong Kong’s property agents must comply with rules when advertising new homes
- They must exercise due care before releasing property information to the public and ensure that no misrepresentation is made, writes Ruby Hon, chief executive of the Estate Agents Authority
- Failure to do so can result in disciplinary action and fines
As the first-sale residential property market has shown recent signs of a recovery, estate agents are once again eagerly promoting new developments to their clients and the public via different channels. Consumers might have come across advertisements issued by estate agents through the internet or distribution on the street. The Estate Agents Authority (EAA) is, as always, concerned about non-compliances in this area.
To ensure the compliance of estate agents when carrying out promotional activities for first-hand residential properties, including the issuance of advertisements, the EAA conducts inspections at sites and agency shops, and also conducts cyber patrols in view of the increasing popularity of online property advertisements.
Here I would like to share a non-compliant case.
The EAA received an anonymous complaint regarding an online advertisement for a first-hand residential property posted by an estate agency on an online property platform. The listing price of the property was HK$16,000,000.
According to the price list published on the Sales of First-hand Residential Properties Electronic Platform, the price of a first-hand unit from that development ranged from HK$16,567,000 to HK$21,541,000.
The estate agency company claimed that it had received a special notice from the developer that the price of a first-hand unit from that development could be adjusted to HK$16,000,000 or below. However, upon the EAA’s inquiry, the developer said they had not given permission for any appointed estate agency to adjust the listing price stated in the price list.