HK Real Estate Exam Quiz 07

Ariel is a salesperson who represents a vendor of a property and at the same, he is also acting for the purchaser. However, he did not inform his clients that he is acting for both. What provisions in the Code of Ethics that Ariel might have violated for such actions?

I. Adherence to the principles of fair competition.
II. Refraining from seeking unfair advantage to injure the reputation of the business practice of other agencies.
III. To protect and promote the interests of clients.
IV. Providing services to clients with honesty, fidelity, and integrity.
V. Minimizing conflict of interest.

Which of the following are the reasons why a licensed estate agent who carries on the business of estate agency work is required to appoint a manager for each of his offices in situations where he has more than one office?

I. For effective management and supervision.
II. To have separate control.
III. To generate more profit.
IV. To be able to build good relationships with other agencies.
V. To provide a better working environment for the employees.

A licensed estate agent who is engaged in estate agency business is preparing for a letter to be given to a client, what are the required information that should be stated in such letter?

I. Names of the directors of the company.
II. His license number or statements of particulars of business number.
III. The business name which is stated in the relevant statement of particulars of business.
IV. The date when the business permit was approved.
V. The location of the business.

XYZ Company is a company that is holding an estate agent’s license, which of the following should XYZ comply with in relation to the EAO?

I. It should have at least one director who is has a valid estate agent’s license while the other directors may not have the license.
II. It must have at least one director who is a holder of a valid estate agent’s license.
III. It must ensure that all of its directors has a valid estate agent’s license.
IV. It must have at least one salesperson who has a valid salesperson’s license.
V. All of its directors are fit and proper person according to section 20(3) of the EAO.

A client who wanted to buy a property has reached out to the salesperson to extend his interest to a property handled by the concerned salesperson. What is the information that the salesperson is required to inform the client before pursuing the transaction with the client?

I. He is a licensed salesperson.
II. The duration of time that he has been engaged as a salesperson.
III. His license number.
IV. Information about when he passed the qualifying examination for salespersons.
V. The statement of the particulars of business.

Which of the following is correct statements when handling situations wherein forms are prescribed?

I. The forms should be completed in the manner as specified in the respective forms.
II. The forms should be accompanied by the required documents.
III. The client should be responsible for obtaining the required forms.
IV. The licensed estate agent should make sure that the information obtained is accurate.
V. It is solely the client’s responsibility to ensure that information included in the forms is accurate.

Ysabelle is a newly licensed estate agent, which of the following are events that she may enter into an estate agency agreement with a vendor?

I. After conducting an up-to-date land search of the property.
II. After the inspection of the purchaser of the property.
III. Within seven working days after accepting the instruction from the vendor to sell or lease a property.
IV. Before the signing of the agreement for the sale and purchase or lease of a property.
V. Before issuance of any advertisement for the property.

A licensee is about to enter into an agreement with a client is not legally represented, what should be the proper actions of the licensee in such a situation?

I. Require the client to get a legal representative.
II. Explain to the client the different types of agency appointments in the agreement.
III. Make sure that the client is aware of his rights and obligations by explaining the terms and conditions.
IV. Cancel the agreement if the client cannot provide a legal representative.
V. Recommend seeking legal advice if the client has some parts of the agreement that the client does not fully understand.

Which of the following statements are correct about a licensed estate agent and a salesperson?

I. Both should notify EAA if there is a change in registered address within 14 days of such change.
II. Both are required to stop immediately from doing any estate agency work on the date of effectivity of suspension or revocation.
III. Both can be appointed as a director of a company engaged in estate agency work.
IV. Both may be subjected to an inquiry or investigation by the EAA.
V. Both can apply for switching of license without any criteria to be met.

Cris a licensed estate agent, who is under investigation by EAA in relation to a transaction he conducted with a client. What should be the appropriate actions of Cris in this situation?

I. Produce the relevant documents as requested by EAA.
II. Demonstrate a full understanding of the records or documents in possession.
III. Maintain confidentiality in relation to the investigation process.
IV. Cooperate only with EAA when he is provided with a legal representative.
V. Request the assistance of his manager to provide further explanation on the records or documents requested by EAA.

Mr. Yap is a licensed estate agent who is engaged in the estate agency business and has a valid statement of particulars of business. What should Mr. Yap do in relation to the statement of particulars of business according to the Estate Agents Licensing Regulations (LR)?

I. He should not make any amendments to it once it is approved by EAA.
II. He should make the amendments approved by his managers and directors.
III. He should make sure that this is displayed in a very conspicuous place in this business location.
IV. He should apply to EAA if there are any amendments.
V. He should apply for a replacement in case this is lost, stolen, damaged, or destroyed as soon as possible.

Which of the following situations requires a licensed estate agent to use specified forms as prescribed for the purposes of the EAO?

I. In acting for a tenant in the leasing of property, Form 2 should be entered into by the licensed estate agent with the tenant.
II. In acting for both the vendor and the purchaser in the sale of a property, Form 1 should be completed by the licensed estate agent.
III. In acting for the tenant in cases wherein the landlord is not represented by any estate agent, Form 2 should be completed by the licensed estate agent.
IV. In acting for a landlord in the leasing of a property, Form 5 should be entered into by the licensed estate agent with the landlord.
V. Form 1 should be completed by the licensed estate agent when acting for a vendor in the sale of a property.

Mr. Sun is a licensed estate agent who has just entered into an estate agency agreement with a client. He has as well received a commission paid by another client for a successfully completed transaction. What should be the expected actions of Mr. Sun as a response to these events?

I. He should keep a copy of the estate agency agreement.
II. He should issue immediately a written receipt for the commission received to the client.
III. He should notify the EAA of the estate agency agreement.
IV. He should notify the EAA of the commission received by completing the specified form.
V. He should notify the client to seek legal advice to explain to the client the details of the agreement.

What should a licensed estate agent observe and keep in mind at all times when creating and releasing an advertisement for a property?

I. It is the licensed estate agent’s discretion on what to include in the advertisement being the expert on this matter.
II. It should not include misleading statements.
III. A vendor’s written consent must be obtained before issuing any advertisements.
IV. It may not include the information that property is to be sublet because this can be disclosed if a client is interested and would inquire for further details about the property.
V. It should only include the prices or rental terms based on the instruction of the vendor.

Miss Yan is a licensed estate agent who is engaged in the estate agency business and has more than one office is looking to employ a salesperson. Which of the following that Miss Yan needs to comply with in accordance with the EAO about salespersons?

I. Appoint the salesperson to manage one of her offices.
II. Require the salesperson to complete training for the salesperson before employing.
III. She must make sure that the salesperson has a valid salesperson’s license.
IV. She needs to notify EAA within 31 days of employing the salesperson.
V. Complete Form 9 in the schedule of the PR to notify EAA of the employment of the salesperson.

Mike is a licensed estate agent whose license will expire on 11 December 2020. When can Mike apply for the renewal of his license in order for him to be able to continue doing estate agency work?

Bigtime Real Estate is a company holding an estate agent’s license and is looking for an individual to fill a position as one of its directors. Mr. Lim has been practicing as a licensed salesperson for the past ten years and has a very good performance and extensive experience with respect to his profession. Miss Chu on the other hand is a licensed estate agent with five years of experience. Which of the two licensees is qualified for the director position for Bigtime Real Estate?

An unexecuted estate agency agreement was personally presented to a client for signature. However, when it is to be signed, the document does not become an executed estate agency agreement. What should a licensed estate agent as a response to this situation?

Mr. Kho is a licensed estate who is acting on behalf of a vendor of a property. He received three offers from different purchasers who are interested in the property. From the three offers, the second offer is the best offer from his personal point of view. What is the appropriate action of Mr. Khu in this situation?

If the agreement for the sale and purchase or a lease of a property has been signed, a licensee should:

Mr. Yap is a senior practitioner as a licensed salesperson and has completed a training course for estate agents last 16 July 2000. He wants to apply for the grant of an estate agent’s license. Will Mr. Yap be granted an estate agent’s license according to the Estate Agents (Licensing) Regulation (LR)?

Peter is an ex-holder of a salesperson’s license whose license has been expired for the last three years. He makes an application to re-enter the trade and by applying for the grant of the same type of license. Will Peter be granted according to the Estate Agents (Licensing) Regulation (LR)?

What should a licensed estate agent do before releasing any deposit money when acting for the purchaser in the purchase of a property?

In what event that the EAA may request a licensed estate agent to furnish a statutory declaration?

Which of the following situations that a licensed estate agent that no forms are prescribed for the purposes of the EAO?

Which of the following is a property that is considered as a self-contained unit?

One of the directors of a company holding an estate agent’s license has decided to resign as a director because of health reasons. What should the company do in accordance with the EAO for handling such situations?

Mr. Lim was an ex-holder of an estate agent’s license but his license was revoked because of he was convicted of committing a fraudulent act ten years ago. On the other hand, Mr. Yan’s salesperson’s license was considered as not valid because he was not able to renew his license before the expiration due to health reasons. Which of the two is considered to be a fit and proper person to be granted a license according to the EAO?

Mr. Ang’s estate agent’s license will expire in one week’s time. Will Mr. Ang’s application for renewal of license be accepted according to the provisions stated in EAO?

Which of the following statements is correct under the Estate Agents Ordinance?