https://www.scmp.com/rss/328743/feed Ruby Hon Yuen-ping is chief executive officer of Estate Agents Authority en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com The estate agency business has developed a new normal in recent years under the impact of the coronavirus pandemic. Many estate agencies have adopted online promotions, or even online inspections of properties. It is not uncommon to find property agents – or even “KOLs” or key opinion leaders – posting photos and video clips of properties on different online portals or social media platforms to promote these properties. There are also prospective clients who do not wish to visit properties in... https://www.scmp.com/business/article/3193052/be-more-cautious-do-your-homework-when-looking-property-online?utm_source=rss_feed https://www.scmp.com/business/article/3193052/be-more-cautious-do-your-homework-when-looking-property-online?utm_source=rss_feed Tue, 20 Sep 2022 04:00:11 +0000 Purchasing property outside Hong Kong has become increasingly popular among Hongkongers in recent years. Whether the purchase is for investment or emigration, to safeguard their own interests, buyers should study all related information and seek independent professional advice before making a decision. They should also be mindful that issues relating to uncompleted properties outside Hong Kong (UPOH) are particularly complex and there is no guarantee that a developer’s promise of investment... https://www.scmp.com/business/article/3187322/what-buyers-uncompleted-properties-overseas-hong-kong-should-do-protect?utm_source=rss_feed https://www.scmp.com/business/article/3187322/what-buyers-uncompleted-properties-overseas-hong-kong-should-do-protect?utm_source=rss_feed Tue, 02 Aug 2022 04:01:18 +0000 The government has implemented a new tenancy control regime for subdivided units under Part IVA of the Landlord and Tenant (Consolidation) Ordinance, which came into effect on 22 January this year. As estate agents may handle tenancies relating to units that are subject to Part IVA, the Estate Agents Authority (EAA) issued a practice circular setting out the relevant guidelines for estate agents to follow, which also came into effect on the same date as Part IVA. Here I would like to bring to... https://www.scmp.com/business/article/3178019/how-estate-agents-and-landlords-should-implement-hong-kongs-new-tenancy?utm_source=rss_feed https://www.scmp.com/business/article/3178019/how-estate-agents-and-landlords-should-implement-hong-kongs-new-tenancy?utm_source=rss_feed Tue, 17 May 2022 04:00:15 +0000 In order to comply with the requirements of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), estate agents must conduct “customer due diligence” (CDD) to identify and verify the identity of their customer when handling the sale and purchase of a property. The Estate Agents Authority (EAA) issued a relevant practice circular on this for the estate agency sector back in 2018. However, some consumers might still be unaware of the requirements imposed on estate agents... https://www.scmp.com/business/article/3172129/home-buyers-sellers-must-let-estate-agents-verify-their-id-documents?utm_source=rss_feed https://www.scmp.com/business/article/3172129/home-buyers-sellers-must-let-estate-agents-verify-their-id-documents?utm_source=rss_feed Tue, 29 Mar 2022 04:00:30 +0000 Risks exist in the purchase of properties where there was a previous assignment at nil consideration or a deed of gift, as the transaction could be set aside should the previous owner go into bankruptcy or liquidation within five years of the or winding up petition. To protect the interests of their clients, estate agents should bring the purchasers’ attention to the possible risks when they are handling transactions involving such properties. Potential risks associated with purchasing... https://www.scmp.com/business/article/3164564/what-you-need-know-when-purchasing-properties-previous-deed-gift?utm_source=rss_feed https://www.scmp.com/business/article/3164564/what-you-need-know-when-purchasing-properties-previous-deed-gift?utm_source=rss_feed Tue, 25 Jan 2022 04:00:28 +0000 When listing a property or looking for one for sale, purchase or lease, both the vendor/landlord and the buyer or tenant will most likely consider the relevant market data. Such information could affect their decision making. If estate agents decide to provide the relevant market data to their clients, they must ensure that the information provided is accurate. Otherwise, they may be subject to disciplinary action by the Estate Agents Authority (EAA). Estate agents and salespersons should always... https://www.scmp.com/business/article/3157720/hong-kong-property-agents-risk-disciplinary-action-if-information-they?utm_source=rss_feed https://www.scmp.com/business/article/3157720/hong-kong-property-agents-risk-disciplinary-action-if-information-they?utm_source=rss_feed Tue, 30 Nov 2021 04:00:16 +0000 Prospective purchasers are reminded to carefully consider their own financial situation before making a property purchase decision. In most situations, whether a property transaction can be completed depends on the amount of mortgage loan that could be obtained. Prospective purchasers should bear in mind that there are numerous factors affecting the approval of their mortgage applications. Some prospective purchasers may ask property agents for mortgage information before making their purchase... https://www.scmp.com/business/article/3152865/mortgage-borrowers-should-seek-professional-advice-making-purchase?utm_source=rss_feed https://www.scmp.com/business/article/3152865/mortgage-borrowers-should-seek-professional-advice-making-purchase?utm_source=rss_feed Tue, 19 Oct 2021 07:57:20 +0000 Purchasing properties situated outside Hong Kong, particularly uncompleted ones, is complicated and full of risks. Consumers should study all related information before making a purchase decision and be extremely vigilant when investing in these properties so as to protect their own interests. In Hong Kong, there is no legal requirement that the transactions of real estate properties, wherever situated, must be handled by licensed estate agents. In view of the increasing number of Hong Kong... https://www.scmp.com/business/article/3147685/buyers-beware-investors-real-estate-assets-beyond-hong-kong-should-be?utm_source=rss_feed https://www.scmp.com/business/article/3147685/buyers-beware-investors-real-estate-assets-beyond-hong-kong-should-be?utm_source=rss_feed Tue, 07 Sep 2021 04:00:24 +0000 There was a recent media report about a purchaser’s mortgage application being rejected by local banks as the property had unauthorised building work. While some properties might look attractive due to a redesign or modification of their original layout plan, purchasers should be wary of the risks if they involve illegal alterations. They could be in breach of the city’s Buildings Ordinance. To protect their clients’ interests, estate agents have a duty to check whether there is any undischarged... https://www.scmp.com/business/article/3139948/beware-pitfalls-buying-properties-unauthorised-building-work-or-illegal?utm_source=rss_feed https://www.scmp.com/business/article/3139948/beware-pitfalls-buying-properties-unauthorised-building-work-or-illegal?utm_source=rss_feed Tue, 06 Jul 2021 04:00:22 +0000 The recent boom in the first-hand residential property market has helped contribute to an increase in the number of transactions in secondary residential properties. Media reports have shown prospective purchasers queuing up to inspect properties. When searching for properties, prospective purchasers may browse different property advertisements from various property platforms. I would like to remind consumers that they should do more research and comparison on the information contained in these... https://www.scmp.com/business/article/3129303/why-you-should-research-and-compare-information-contained-advertisements?utm_source=rss_feed https://www.scmp.com/business/article/3129303/why-you-should-research-and-compare-information-contained-advertisements?utm_source=rss_feed Tue, 13 Apr 2021 04:05:16 +0000 The sale of new residential developments remains the focus of Hong Kong’s property market this year. In this regard, consumers should not solely rely on promotional materials and advertisements when considering a purchase of a first-hand residential property, particularly those posted on social media or lamp posts. They should always be sceptical about promotional messages. It is not easy for consumers to verify information that appears in advertisements. Advertisements with only a contact name... https://www.scmp.com/business/article/3119127/exercise-care-advertisements-and-be-alert-misrepresentation-when-buying?utm_source=rss_feed https://www.scmp.com/business/article/3119127/exercise-care-advertisements-and-be-alert-misrepresentation-when-buying?utm_source=rss_feed Tue, 26 Jan 2021 04:05:05 +0000 Over the past few years, it is becoming more popular for Hong Kong people to purchase non-local properties. The risk they face is high, especially when those properties are still under construction, or are yet to be completed. Currently, there is no relevant legislation governing the sale of non-local properties in Hong Kong. Selling properties situated outside Hong Kong is generally beyond the purview of the Estate Agents Authority (EAA). A person or company engaging in estate agency work... https://www.scmp.com/business/article/3109043/what-risks-do-hongkongers-face-while-buying-uncompleted-property-abroad?utm_source=rss_feed https://www.scmp.com/business/article/3109043/what-risks-do-hongkongers-face-while-buying-uncompleted-property-abroad?utm_source=rss_feed Tue, 10 Nov 2020 04:00:22 +0000 Last month, the Hong Kong Monetary Authority (HKMA), for the first time in more than a decade, raised the applicable loan-to-value ratio cap for mortgage loans on non-residential properties from 40 per cent to 50 per cent, in a bid to boost the city’s moribund property market weighed down by a recession and coronavirus pandemic. Getting a sufficient amount of mortgage loan is one of the many crucial factors that affects the decision of an individual, for both residential and non-residential... https://www.scmp.com/business/article/3102451/hong-kong-property-agent-finds-hard-way-why-it-important-stay-top-mortgage?utm_source=rss_feed https://www.scmp.com/business/article/3102451/hong-kong-property-agent-finds-hard-way-why-it-important-stay-top-mortgage?utm_source=rss_feed Tue, 22 Sep 2020 04:05:11 +0000 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... https://www.scmp.com/property/hong-kong-china/article/3093871/hong-kongs-property-agents-must-comply-rules-when?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/3093871/hong-kongs-property-agents-must-comply-rules-when?utm_source=rss_feed Tue, 21 Jul 2020 04:00:08 +0000 Property transactions in Hong Kong’s primary and secondary markets have been declining due to the coronavirus pandemic, and the prospect of a near-term revival is not promising. As property prices often fluctuate in an unstable market environment, so too do a bank’s property valuation and in turn the amount of an eligible mortgage loan. While some buyers of first-hand residential properties would choose to pay the purchase price upon completion of the property development at a future date, they... https://www.scmp.com/business/article/3083787/hong-kong-property-agents-face-ethical-duty-advising-clients-bank?utm_source=rss_feed https://www.scmp.com/business/article/3083787/hong-kong-property-agents-face-ethical-duty-advising-clients-bank?utm_source=rss_feed Tue, 12 May 2020 04:00:18 +0000 The real estate market thrives on transparency and trust, and agents must not allow any personal interest to conflict with those of their clients. Moreover, they should make a full disclosure to their clients of all relevant facts which may amount to any conflict or potential conflict of interests, so as to allow their clients to decide whether to proceed with the proposed transaction or with their appointment as agents. Generally speaking, an estate agent should not purchase or rent property... https://www.scmp.com/business/article/3075385/estate-agents-should-adopt-full-disclosure-avoid-conflict-interests?utm_source=rss_feed https://www.scmp.com/business/article/3075385/estate-agents-should-adopt-full-disclosure-avoid-conflict-interests?utm_source=rss_feed Tue, 17 Mar 2020 04:00:28 +0000 It is common for prospective buyers to submit more than one registration of intent to stand a better chance of purchasing first-hand residential properties through balloting. Sometimes, they might not have sufficient down payment for multiple submissions. Notwithstanding, property agents are not allowed to offer loans to prospective purchasers to help them submit any registration of intent under any circumstances. According to the Practice Circular (No. 13-04 (CR)) issued by the Estate Agents... https://www.scmp.com/business/article/3050971/how-property-agent-fell-afoul-estate-agents-authoritys-code-ethics?utm_source=rss_feed https://www.scmp.com/business/article/3050971/how-property-agent-fell-afoul-estate-agents-authoritys-code-ethics?utm_source=rss_feed Tue, 18 Feb 2020 08:00:16 +0000 A land search is an important document in a property transaction. It provides the searcher with essential information regarding the property, such as its address, ownership details and encumbrances, if any, that are registered against it. According to section 13(4) of the Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation (Practice Regulation), an estate agent who acts for a vendor (or landlord) of a residential property is required to, immediately before an... https://www.scmp.com/property/hong-kong-china/article/3042307/importance-conducting-land-search-when-buying-or-selling?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/3042307/importance-conducting-land-search-when-buying-or-selling?utm_source=rss_feed Tue, 17 Dec 2019 04:00:12 +0000 When handling the transaction of second-hand properties in Hong Kong, estate agents may arrange for clients to enter into a provisional agreement for sale and purchase (PASP) or provisional tenancy agreement (PTA). Consumers should note that both are legally binding documents and disputes may easily arise if they are not completed properly. Here, I would like to highlight that estate agents are required to exercise due care and diligence when preparing PASP and PTA for their clients. In order to... https://www.scmp.com/property/hong-kong-china/article/3032827/why-provisional-sales-tenancy-agreements-property-hong?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/3032827/why-provisional-sales-tenancy-agreements-property-hong?utm_source=rss_feed Tue, 15 Oct 2019 04:00:10 +0000 The interest of Hong Kong people in purchasing properties situated outside Hong Kong has been on the rise in recent years. At the same time, there has also been an increase in the number of companies, including licensed property agents, taking part in the sale of such properties. However, most consumers have limited knowledge of foreign regulatory regimes and taxation systems governing the purchase or leasing of these properties by foreign buyers. In particular, purchasing an incomplete property... https://www.scmp.com/business/article/3024539/hong-kong-watchdog-extends-purview-regulate-licensed-property-agents?utm_source=rss_feed https://www.scmp.com/business/article/3024539/hong-kong-watchdog-extends-purview-regulate-licensed-property-agents?utm_source=rss_feed Tue, 27 Aug 2019 09:05:02 +0000 Before deciding to rent a property, a prospective tenant should pay attention to whether it is being leased by the landlord or sublet by the principal tenant, as subletting may involve complicated issues and a subtenant’s rights might not be protected. According to a circular about tenancy matters issued by the Estate Agents Authority (EAA), agents handling the subletting of properties should review the principal tenancy agreement between the landlord and the principal tenant to see if there is... https://www.scmp.com/property/hong-kong-china/article/3019681/be-careful-when-renting-sublet-property-if-theres-no?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/3019681/be-careful-when-renting-sublet-property-if-theres-no?utm_source=rss_feed Tue, 23 Jul 2019 04:00:18 +0000 According to the Buildings Ordinance, additions or alterations to buildings made without the prior approval of the Building Authority may constitute unauthorised building works (UBW) and it may issue an order requiring the property owner to demolish/alter the UBW within a specified period. In most cases, the building order will be registered at the Land Registry against the property. Undischarged building orders are encumbrances on the property. In view of the fact that UBW may affect the safety... https://www.scmp.com/property/hong-kong-china/article/3012056/understanding-risks-unauthorised-building-works-buying-or?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/3012056/understanding-risks-unauthorised-building-works-buying-or?utm_source=rss_feed Tue, 28 May 2019 04:00:09 +0000 I would like to share a case regarding stamp duty liability so as to remind both property agents and consumers of the importance of understanding the types and amount of stamp duty payable before entering into any provisional agreement for sale and purchase. An agent introduced an industrial property to a prospective buyer. When asked about the ad valorem stamp duty payable on the transaction, the salesman told her that she did not have to pay any stamp duty if she sub-sold the property as... https://www.scmp.com/property/hong-kong-china/article/3005317/pay-close-attention-stamp-duty-when-buying-property-hong?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/3005317/pay-close-attention-stamp-duty-when-buying-property-hong?utm_source=rss_feed Tue, 09 Apr 2019 04:00:11 +0000 I would like to share a case concerning a property advertisement with misleading or wrong information. An estate agency company issued an advertisement of a residential property for sale or rent with information of its block number, saleable area and gross floor area. Several photos showing the view of the property and its interior were also included. However, the photos did not belong to the advertised property but belonged to another property located in the same block on a lower floor, which... https://www.scmp.com/business/article/2187651/be-aware-these-regulations-affecting-property-advisements?utm_source=rss_feed https://www.scmp.com/business/article/2187651/be-aware-these-regulations-affecting-property-advisements?utm_source=rss_feed Tue, 26 Feb 2019 04:04:49 +0000 Purchasing a property to many people is a lifetime investment requiring substantial amount of savings. Most buyers will need to apply for a mortgage loan to finance their purchase. A well-planned budget and obtaining accurate information about a mortgage loan before committing the property purchase are therefore very important steps to take for the prospective purchasers. When a client asks about a mortgage loan, a professional estate agency practitioner should not hastily provide mortgage... https://www.scmp.com/business/article/2178411/homebuyers-should-find-out-how-much-bank-will-loan-signing-purchase?utm_source=rss_feed https://www.scmp.com/business/article/2178411/homebuyers-should-find-out-how-much-bank-will-loan-signing-purchase?utm_source=rss_feed Tue, 18 Dec 2018 04:00:15 +0000 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... https://www.scmp.com/business/article/2171769/hong-kong-property-agents-mustnt-mislead-buyers-or-face-disciplinary-action?utm_source=rss_feed https://www.scmp.com/business/article/2171769/hong-kong-property-agents-mustnt-mislead-buyers-or-face-disciplinary-action?utm_source=rss_feed Tue, 06 Nov 2018 04:04:34 +0000 The property market in Hong Kong is dominated by the sale of new homes in recent years with most of the transactions conducted by property agents. Crowds of salesmen are commonly seen at the sales sites, and occasionally there are reports of salesmen fighting as they look to corner clients. Not all of these salesmen are licensed and some of them are unlicensed employees or interns of property agencies. The sales sites of first-hand homes hence have been seething with a mix of licensed and... https://www.scmp.com/business/article/2165485/property-agents-watchdog-vows-harsher-penalties-errant-brokers-it-aims?utm_source=rss_feed https://www.scmp.com/business/article/2165485/property-agents-watchdog-vows-harsher-penalties-errant-brokers-it-aims?utm_source=rss_feed Tue, 25 Sep 2018 04:02:56 +0000