HK Real Estate Exam Quiz 06

What are the purposes of the promulgation of the Code of Ethics for estate agency work by the EAA?

I. It outlines the disciplinary sanctions for each violation incurred.
II. It states the provisions and laws and regulations to be followed.
III. It serves as a guide and directions for all parties engaged in the conduct of estate agency work.
IV. It sets common ethical standards that would serve as a baseline for all.
V. It promotes consistency of behavior that is expected in conducting work.

Which of the following are stated in the Code of Ethics of what is expected from estate agents and salespersons?

I. They shall have a degree in law to be fully conversant with the related legislations.
II. They shall comply with the law at all times.
III. They should have a good understanding of all the related legislation for estate agency work.
IV. They shall the required educational qualification in order to practice estate agency work.
V. They shall at all times ensure that they promote the interest of their clients.

The Code of Ethics states that the relationship between agents and ethical standards to be observed in conducting the estate agency business must be observed. Which of the following statements demonstrates this provision?

I. Estate agents and salespersons shall refrain from doing any action that will denigrate the practices of other agencies.
II. Estate agents and salespersons shall not bring discredit to the estate agency trade.
III. Estate agents and salespersons shall be fully conversant with the laws in estate agency work.
IV. Estate agents and salespersons shall avoid restrictive business practices but instead promote fair competition.
V. Estate agents and salespersons must keep themselves updated on the developments of estate agency work.

Which of the following are NOT applicable to all licensees?

I. At least one director must be appointed who has a valid estate agent’s license.
II. The relevant statement of business particulars should be displayed at a conspicuous place at the place of business.
III. EAA must be notified of the change of registered address within 14 days of such change.
IV. A manager must be appointed for effective management and control for the offices.
V. In events of suspension or revocation, the licensee should immediately stop doing any estate agency work.

Licensed estate agents who are engaged in the business of estate agency work are required to do the following:

I. Include in all the documents used in the business the license number or statement of particulars of business.
II. Should ensure that all existing and prospective salespersons are holders of valid licenses.
III. Appoint a manager for each of the offices who is a licensed estate agent.
IV. Apply for replacement of his statement of particulars of business it is lost, stolen, damaged, or destroyed within six months of such event.
V. Notify EAA upon the employment of a salesperson only and does not need to do so during the termination of employment.

Which of the following are TRUE about the directors of companies holding an estate agent’s license?

I. They should have a valid estate agent’s license.
II. They should be fit and proper person in compliance with section 20(3) of the EAO.
III. When they are appointed, the EAA should be notified within 31 days from the appointment.
IV. They should have the required educational qualification of at least a Bachelor’s Degree holder.
V. They should have a minimum experience of at least 3 years before the appointment as director.

What should a licensee do when he is employed by an estate agent as a salesperson?

I. He should negotiate for a fixed percentage of commission from his employer for all sales made.
II. He should notify the EAA about his employment after his six months after his probationary period.
III. Before committing to the employer, he should ascertain that his prospective employer is a licensed estate agent.
IV. He should request from his employer transportation allowances required for him to be able to provide services to his clients.
V. When he receives money from the client, he should straightaway pay such money to his estate agent employer.

Chris is a licensed estate agent who is contacted by a client for the leasing of residential property in Hong Kong. Which of the following should be done by Chris in this situation?

I. He should Form 1 in the Schedule to the PR for the leasing of a property.
II. He should inform his client that he is indeed a licensed estate agent and provide the client with his license number.
III. He should make sure that the provisions in the PR in handling such transactions are complied with.
IV. He informs the client to contact the owner of the property for inspection and viewing.
V. He should use Forms 1-6 in the Schedule to the PR.

Identify which statements are correct in relation to the use of Forms.

I. Forms 1 and 2 should be completed with the vendor when a licensed estate agent is acting for a vendor in the sale of a property
II. Form 2 should be completed with the purchaser when a licensed estate agent is acting for a purchaser in the purchase of a property.
III. Form 3 should be completed with the vendor when a licensed estate agent is acting for a vendor in the sale of a property.
IV. Form 4 should be completed with the purchaser when a licensed estate agent is acting for a purchaser in the purchase of a property.
V. Form 6 should be completed with the tenant when a licensed estate agent is acting for a tenant in the leasing of a property.

Which of the following statements are TRUE about the use of Forms in conducting estate agency work?

I. If the property for sale and purchase or for lease is a car parking space alone, no form is prescribed.
II. No form is prescribed if the property for lease is not a self-contained unit.
III. When a licensed estate agent is acting for a landlord in the leasing of a property, Form 5 should be completed with the landlord.
IV. When the property for lease is a car parking alone, Forms 1 and 2 are prescribed.
V. When the property is a self-contained unit, Form 6 is required.

If a licensed estate agent enters into an estate agency agreement, which of the statements below should be the appropriate course of action of the licensed estate agent?

I. He has to keep in mind that he is not allowed to act for both the vendor and the purchaser at the same time.
II. If acting for a vendor, he should use Form 1 for the sale and purchase and Form 2 for the leasing of a property.
III. When an offer is received, he should inform the vendor who is the client.
IV. He is not demanded to disclose to the client any beneficial interest he has in the property concerned when it will be disposed of as long as he still considers a priority the interest of the client.
V. If he acting for both the vendor and the purchaser both should be informed accordingly.

Which of the following events a licensed estate agent should not enter into an estate agency agreement with a vendor?

I. After the advertisement has been released.
II. The agreement has already been signed for sale and purchase or a lease of property.
III. Seven working days have already elapsed after receiving the instruction from the vendor to sell or lease a property.
IV. The advertisement has not been released.
V. The agreement for sale and purchase or a lease of the property has not been signed.

In a written agreement with the vendor in a first sale of an undivided share in land wherein a property forms part by the vendor of such property, a licensed estate should ensure that the agreement states the following:

I. The information in Part 1 of Form 1 in the Schedule to the PR shall be obtained by the agent.
II. Whether the agent is also allowed to act for the purchaser.
III. The agent is not permitted to act for both the vendor and the purchaser.
IV. Except if the property is a unit in an uncompleted building, the vendor shall supply the agent with Part 2 of Form 1.
V. The amount of commission the agent shall receive upon the closure of the sale.

Identify which statements are expected to be followed by a licensee in relation to seeking instructions in conducting estate agency work.

I. A licensee may submit to a sub-listing agent the information of the property and afterward acquire the written consent of the vendor.
II. A licensee is not allowed in all circumstances to pass to the sub-listing agent any information about the vendor or information about the vendor’s property.
III. A licensee should not provide misleading information about a property.
IV. A licensee should acquire the written consent of the vendor before passing to a sub-listing agent any information about the property.
V. If a property is subject to an exclusive agency granted to another licensed estate under an estate agency agreement and this is known to a licensee, the licensee should not seek instruction from a vendor for such property.

Which statements are true in relation to the records of all listings of properties and copies of all estate agency agreements entered into that should be kept a by a licensed estate agent?

I. These should include not less than three years from the receipt of the listings or when the estate agency agreements are entered.
II. These may be inspected by EAA authorized officers.
III. During the inspection, the licensee is expected to be able to answer questions asked by the EAA officers.
IV. These should include the receipt of the listings or when the estate agency agreements are entered for not less than five years.
V. The licensed estate agent may refuse the inspection by the EAA authorized officers if he has not done anything wrong.

Who is allowed to conduct an inspection of the records maintained by a licensed estate agent in relation to its conduct of estate agency work?

When can a licensed estate agent release or issue any form of advertisement for a residential property of a vendor?

In relation to the advertisement of a property, which of the following statements is correct?

If the property that was for sale or purchase or for lease is no longer available, when should a licensed estate agent remove all advertisements for the property concerned?

In relation to property inspection and viewing by a purchaser, which of the following statements is correct?

When a licensee conducts a negotiation, what is the expected action of a licensee?

What should a licensee do when the client enters into an agreement for the sale and purchase or a lease of property without any legal representation?

What should a licensee do ensure to avoid fraudulent misrepresentation of identity of the vendor?

What should be done by a licensee who is acting for a vendor before entering into an agreement for sale and purchase or a lease of property?

Which of the following statements is correct in relation to the payment of any commission by a client to a licensed estate agent?

When a licensed estate agent deposits money received for a client, what should be the consequent action of the licensed estate agent in such an event?

What is the allowed mode of withdrawal of money from a trust account by a licensed estate agent?

Which statement is correct in relation to the switching of types of licenses?

If required by the EAA, a licensed estate agent may be required to furnish a certificate signifying the licensed estate agent has complied with section 12(1) of the PR. Who is authorized to issue such a certificate?

What is required from the vendor when the name of the vendor and the owner of the property is not the same?