HK Real Estate Exam Quiz 08

Which of the following are stated in the Code of Ethics for estate agents and salespersons?

I. Estate agents and salespersons should avoid doing activities that may result in infringement of the law.
II. Estate agents and salespersons should be well versed with the related legislations.
III. Estate agents and salespersons should uphold ethical and moral standards in the conduct of their practice.
IV. Estate agents and salespersons should have the necessary educational qualifications.
V. Estate agents and salespersons should be at least 18 years of age to be permitted to practice estate agency work.

Estate agents and salespersons are expected to promote a good relationships between agents while conducting an estate agency business. Which of the following are examples of this?

I. Estate agents and salespersons should protect the interests of their clients at all times.
II. Estate agents and salespersons should have full knowledge of the developments in estate agency work.
III. Estate agents and salespersons should not do anything that will result in an unfair advantage to other agencies directly or indirectly.
IV. Estate agents and salespersons should refrain from doing any activity that may result to discredit and/or disrepute to the estate agency trade.
V. Estate agents and salespersons should avoid restrictive or monopolizing business practices instead they should promote fair competition principles.

How should estate agents and salespersons minimize conflict of interest situations?

I. They should possess the professional knowledge and competence required in doing estate agency work.
II. They should refrain from any involvement in a property where they have a beneficial interest.
III. They should make sure that the clients are aware if they are representing both the vendor and the purchaser.
IV. They should disclose to all the parties involved any beneficial interest that they have in relation to the property.
V. They should help in promoting the good reputation of the estate agency trade as a whole.

Which of the following should not be done by estate agents and salespersons according to the Code of Ethics?

I. Accepting appointments in relation to a property that they have a beneficial interest.
II. Relying on legal representatives for all the explanations of the relevant legislation.
III. Putting as first priority the interest of their clients.
IV. Protecting and promoting self-interest at all times while conducting estate agency work.
V. Keeping themselves updated on the changes in the relevant legislation of estate agency work.

Which of the following statements are applicable to all licensees?

I. A licensee should comply with all the conditions specified in relation to his license.
II. A licensee should stop doing any estate agency work immediately on the effectivity of suspension or revocation.
III. A licensee may practice estate agency work if he has a license issued by any government agency.
IV. A licensee should only be engaged in estate agency work if he possesses the valid license that is duly issued by EAA.
V. A licensee should be engaged only in estate agency work after completing one year of apprenticeship.

Which of the following is true in relation to a licensee’s renewal of license?

I. A licensee can apply for renewal of the license at any time before the expiration of his license.
II. A licensee cannot reapply if his application for renewal has been refused.
III. A licensee should apply for renewal of license not more than three months and not less than one month before the expiration of the license.
IV. A licensee should only reapply for renewal of a license after 12 months from the date of refusal or revocation.
V. A licensee can apply for the renewal of the license in a shorter period of time provided a prior written consent for such is obtained.

Which of the following statements are expected to be observed and followed by a licensee?

I. Replace his lost or damaged license after one month of the incident.
II. Notify EAA if there is a change in the registered address within 14 days of such change.
III. Apply for replacement of license as soon as possible it events that it may be lost, stolen, damaged, or destroyed.
IV. Notify EAA as soon as it is practicable if there is a change in the registered address.
V. Use only the name stated in his license when doing any estate agency work.

What should a licensee do in the event of an inquiry or investigation that he might be subjected to?

I. Produce records or documents that may be requested by EAA related to the investigation.
II. Explain properly and accurately to the EAA the details of the records or documents in his possession.
III. Request from EAA to provide a legal representation to represent him during the investigation.
IV. Give reasonable assistance to the EAA for the smooth conduct of the investigation.
V. Do not aim to explain the documents by himself, instead of direct the queries to his legal representative.

A licensed estate agent carrying on the business of estate agency work is expected to:

I. Employ at least two salespersons with valid licenses.
II. Notify EAA if there is a change in any particulars of the business.
III. Make an application for a valid statement of particulars of business for each of his places of business under a particular business name.
IV. Display in a very visible place the relevant statement of particulars of business in the place of business.
V. Apply to EAA if there are changes in any particulars of the business.

What should a licensed estate agent who is carrying on the business of estate agency work comply and observe when producing any documents(receipts, brochures, letters, etc.) including advertisements issued by him or on his behalf?

I. State clearly and conspicuously his license number or statement of particulars of business number.
II. Include the business name specified in the relevant statement of particulars of business.
III. Include in these documents the place of business.
IV. Write the names of the directors and managers.
V. State the year when the business was inaugurated.

What should not be done a licensed estate agent who is carrying on the business of estate agency work?

I. Employ a salesperson who has completed training for salespersons who don’t have a salesperson’s license.
II. Appoint a manager to manage and supervise all of his offices.
III. Make sure the existing and prospective salespersons are holders of valid licenses.
IV. Appoint an experienced and licensed salesperson to manage and supervise for each of his offices.
V. Appoint a manager for each of his offices to make sure that each of these offices is effectively managed.

Which of the following is correct for a licensed estate agent carrying on the business of estate agency work?

I. Notify EAA within 31 days of employing a salesperson by completing Form 9 in the Schedule of the PR.
II. Notify EAA within 31 days of appointing a manager by completing Form 10 in the Schedule of the PR.
III. Notify EAA within 31 days of ceasing to employ a person as a salesperson or upon the termination of the appointment of a manager.
IV. Notify EAA as soon as practicable upon employing a salesperson by completing Form 9 in the Schedule of the PR.
V. Require the newly appointed salesperson or manager to notify EAA by completing the appropriate forms.

All companies holding an estate agent’s license are required to have a director. Which of the following are the qualifications of a director?

I. Has a valid estate agent’s license issued by EAA.
II. Compliant with section 20(3) of the EAO and thus is a fit and proper person.
III. Has at least three years of experience as a salesperson.
IV. Passed a qualifying examination for directors.
V. Has passed both a qualifying examination for estate agents and a salesperson and has both the licenses for such.

Which of the following is correct in relation to the use of forms when handling the sale and purchase or lease of residential properties in Hong Kong?

I. The client is responsible for obtaining the required forms and providing accurate information.
II. The directions and instructions specified by the respective forms should have complied when completing these forms.
III. The forms should be accompanied by related documents as specified in the respective forms.
IV. There is no need for additional documents when completing forms.
V. The licensed estate should get the information required as soon as possible and ensure that the information is accurate.

Which of the following situations where forms are prescribed for the purposes of the EAO?

I. An estate agent is acting for a vendor in the sale of a property.
II. An estate agent is acting for a landlord for a property for lease.
III. An estate agent is acting for a tenant when the landlord does not have any estate agent representation.
IV. An estate agent is acting for a vendor for the lease of a car parking space alone.
V. An estate agent is acting for tenant for the leasing of property that is not a self-contained unit.

If a licensed estate agent is acting for both the vendor and the purchaser, what should a license estate agent do in this situation?

Which of the following events that the licensed estate agent should enter into an estate agency agreement with the vendor?

What happens when an unexecuted estate agency agreement that is for signature by a client and is personally presented by a licensed estate agent was signed by the client?

A licensed estate agent may enter into a written agreement in the first sale of an undivided share in land in which a property forms part by a vendor of the property. What should be stated in such written agreement?

If a licensee wishes to forward to a sub-listing agent any information of a vendor or information about the property of a vendor, what should a licensee do before proceeding with such action?

Which of the statements is true when a property is under an estate agency agreement that makes the property subject to an exclusive agency that is granted to a licensed estate agent?

What should be observed by a licensed estate agent in relation to advertisements for any property?

Which of the following events that a vendor’s consent should be obtained first by a licensee?

What should a licensee prepare before the signing of the sale or purchase or lease or a property?

Which of the statements is expected to be done by a licensee in relation to offers received for a property?

If a licensed estate agent receives commission paid by the client, what should a licensed estate agent do?

Who are authorized to inspect the records that are kept by a licensed estate agents in relation to estate agency work?

During a financial year, the licensed estate agent did not receive any money from clients or on behalf of clients. What could be a possible outcome of such a situation?

What should a licensed estate agent do to ensure that his employees or anybody under his control comply with the EAO and its subsidiary legislation?

Which is true for a holder of an estate agent’s license?