HK Real Estate Exam Quiz 01

Which of the following statements are applicable to all licensees?

I. A licensee can only engage in estate agency work should have a valid license issued by EAA.
II. A licensee can only use the name specified in his license.
III. A licensee can reapply after 6 months from the date of refusal or revocation by EAA.
IV. A licensee should complete Form 8 in the schedule to the PR within 31 days of stopping engagement with estate agency work.
V. In case of a change of registered address, a licensee should notify EAA within 10 days of such change.

When a licensee undergoes an inquiry or investigation conducted by EAA, which of the following should be done by the licensee?

I. Produce any record or document at the request of EAA.
II. Be able to provide an adequate explanation of the document in possession.
III. Must request for a written document from the EAA one month before providing the documents.
IV. Must be reasonably cooperative to the investigating authority.
V. Uphold confidentiality of the inquiry and investigation.

Which of the following statements are true to all licensed estate agents carrying on the business of estate agency work?

I. The licensed estated agent should at all times exhibit at the conspicuous place the relevant statement of particulars of a business.
II. The licensed estated agent should apply for corresponding amendments to EAA in case of any changes in any particulars of his business.
III. The licensed estated agent should make sure that all salespersons existing and prospective have has a valid estate agent’s or salesperson’s license.
IV. The licensed estate agent is required to inform the EAA within 31 days of employing or stopping the employ a person as a salesperson by completing Form 8 in the Schedule to the PR.
V. The licensed estated agent should solely control and manage all of his offices such as principal office, branch offices, or otherwise and should not appoint any manager

Identify which of the statements are applicable to all companies holding an estate agent’s license.

I. It may operate in which not all of its directors have a valid estate agent’s license issued by EAA as long as one of them possesses such a license.
II. It should have at least one director with a valid estate agent’s license issued by EAA.
III. It must make sure that each of the directors exhibits fitness and proper person aligned with section 2-(3) of the EAO.
IV. It is allowed only to have a maximum of 5 directors.
V. It is required to notify EAA in events of any appointment of directors or ceasing to be a director

When handling the sale and purchase or the leasing of residential properties in Hong Kong, which of the statements are valid?

I. A licensed estate agent is responsible for acquring the information and ensuring the accuracy of the information entered in the forms.
II. In the event of a first sale of an undivided share in land in which a residential property if a part of, Form 3 and 5 is prescribed.
III. A licensed estate agent or a licensed salesperson should ensure that before doing any work, he must inform the person that he is a licensed estate agent or a licensed salesperson and provide his license number.
IV. In the sale and purchase or the leasing of a car parking space alone, there is no form prescribed for the purposes of the EAO.
V. Form 1 and Form 2 must be both completed in acting for a vendor in the sale of a property by the licensed estate agent.

As a licensed estate agent, when entering into an estate agency agreement regarding any property, should do the following:

I. When acting as the vendor, should supply the information and ensure the accuracy of the information prescribed in Form 1 and Form 2.
II. Must ensure that the client is aware of who is the vendor of each offer.
III. If acting as both for the vendor and purchaser, the licensed estate agent may decide not to disclose to both clients any benefits he may derive from the property concerned.
IV. Full particulars or beneficial interests such as commission must be fully disclosed to the client that he has for the concerned property.
V. If the licensed state agent is acting both as the vendor and purchaser, both clients must be informed.

With regards to estate agency agreements, a licensed estate agent must only enter into such agreement with a vendor in the following events, whichever is the earliest:

I. Only after the advertisement has been released.
II. Within seven working days, after instruction from the vendor to sell or lease a property.
III. Before the agreement for the sale and purchase or a lease has been signed.
IV. Preceding the advertisement.
V. After the signing of the agreement for the sale and purchase or a lease.

A licensed estate agent should only enter into an agreement with an estate agency with a purchaser, in the following events:

I. Before arranging the inspection of a property by the purchaser.
II. The agreement for sale and purchase or a lease has not been done.
III. When advertising has completed.
IV. The signing of the agreement has been completed.
V. The purchaser has already conducted an inspection of the property.

In an event when a licensed estate agent is personally presenting an unexecuted estate agency agreement for signature by a client but does not become an executed estate agency agreement when it is to be signed, what should be done by the licensed estate agent:

I. Must provide a copy of the document and of any document related to it to the client immediately.
II. Must provide a copy of the document and of any document related to it to the client within 10 days.
III. Request a meeting with the client and the estate agency to finalize the agreement.
IV. Must deliver only the unexecuted estate agency agreement to the client.
V. Request the client to provide a document on why the document does not become an executed estate agency agreement.

A licensed estate agent may enter into a written agreement of the first sale of an undivided share in land in which a property forms part by a vendor of the property, the written agreement should state that:

I. The agent shall be the one to obtain the information in Part 1 of Form 1 in the Schedule to the PR.
II. The vendor shall provide with Part 2 of Form 1 to the agent unless if the property if part of an uncompleted building.
III. The agent must disclose all beneficial interest he may get arising from the agreement if the agent also acts for the purchaser.
IV. The agent shall not be allowed to act as the purchaser.
V. The agent will supply Part 2 of Form 1 to the vendor unless if the property if part of an uncompleted building.

Which of the following statements should a licensee keep in mind the following when seeking instructions?

I. A licensee may provide to sub-listing agent information about the vendor or his property with a verbal agreement from the vendor is sufficient.
II. A licensee may pursue a vendor even if the property has is under an estate agency agreement.
III. EAA officers through written authorization may inspect records of all listings of properties maintained by the licensed estate agent.
IV. When a property is subject to an exclusive agency granted to another licensed estate agency agreement, the licensee should refrain from soliciting instruction from the vendor.
V. A licensed estate agent must keep a record of not less than three years from the receipt of the listing or the entering into of the estate agency agreements.

Which of the following statements are correct in terms of advertising?

I. Written consent must be acquired before any advertisement of a vendor’s property.
II. Compliance to section 9(3), (4), and (5) of the PR of a licensed estate agent acting as a sub-listing agent if required.
III. A licensed estate agent my decide on price or terms not instructed by the vendor is the agent deems it beneficial.
IV. The advertisement should include information that the residential property is to be sublet.
V. The licensed estate agent may delay the removal of all advertisements after the property concerned in no longer available with the instructions of the vendor.

In relation to property inspection and viewing, what should be considered by the licensee?

I. The licensee shall let the purchaser and the vendor arrange among themselves for the inspection and viewing of a property.
II. The licensee must accompany the purchaser at all times during the inspection and viewing regardless of the instruction by the purchaser.
III. The vendor’s consent must be acquired before arranging for viewing and inspection of a property.
IV. The licensee shall accompany the purchaser during inspection and viewing except at the instruction of the purchaser.
V. A written inventory should be prepared which includes what is sale or leasing of the property before the agreement will be signed.

When conducting a negotiation, a licensee should do the following:

I. Make sure that an offer has been made by the purchaser before informing the vendor.
II. Make sure that property prices supplied to the client reflect the appropriate value of the property concerned.
III. Must apply the adequate influence on a vendor or a purchaser to persuade him to enter into an agreement.
IV. Should inform the clients of all offers according to the order it was received and present them in a fair manner.
V. Shall delay the presentation of an offer to the client for acceptance to allow for other offers to come.

When a client is not legally represented and enters into an agreement for sale and purchase or a lease of a property, the licensee should:

I. Require the client to acquire legal advice and do not proceed with the agreement.
II. Inform the client that understanding the terms and provisions of the agreement is the client’s responsibility.
III. Suggest to the client to seek legal advice if there are parts that he does not understand in the agreement.
IV. Explain the meaning of the important terms and provisions and assist the client in understanding the meaning of each clause in the agreement.
V. Notify the client that the agreement will not be signed without the presence of his legal adviser.

What should be done by a licensee acting as a sub-listing agent in terms of payment commission?

If a licensee recommends to a client services of any other person in which the licensee may derive beneficial interest resulting from the recommendation, what should be done first by the licensee?

In order to prove that the licensed estate agent has kept proper accounts in accordance with section 12(1) of the PR, what will be required by the EAA to be furnished by the agent?

Which is correct about a holder of an estate agent’s license?

Which of the following statements is applicable to all licensees?

Which is true when a licensee applies for a renewal of his license?

When a licensed estate agent has different offices(principal office, branch office, or otherwise), which of the following must be done?

What should a licensed estate agent do upon employment or termination of a person acting as a salesperson?

Which is NOT CORRECT when a company is holding an estate agent’s license?

If a licensee is employed as a salesperson by an estate agent, what should the licensee verify before proceeding with the employment?

When a licensee acting as a salesperson for a licensed estate agent receives money from a client, what should be done by the licensee upon receiving such money?

In handling the sale and purchase or the leasing of a property used entirely for human habitation, what should be considered by the licensee?

Which statement is CORRECT if a licensed estate agent is acting as both vendor and the purchaser?

In dealing with an estate agency agreement wherein the person is not legally represented, what should a licensee do?

Proper keeping of accounts and recording of money received or held by a licensed estate agent for or on account of clients must be kept properly. Which of the following statements is true with respect to this?