Estate Agent Ordinance Cap 511

7/29/2019 Estate Agent Ordinance Cap 511

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Cap 511 - ESTATE AGENTS ORDINANCE 1

Chapter: 511 ESTATE AGENTS ORDINANCE Gazette Number Version Date

Long title

An Ordinance to provide for the establishment of a body to be known in the English language as the Estate Agents

Authority and in the Chinese language as "" and to define its functions, for the licensing ofestate agents and certain salespersons, the regulation of estate agency work and certain agency agreements, andfor matters related or incidental to the foregoing.

[Parts I, II,sections 41, 54(1), 56 and 57, and the Schedule }

} 8 August 1997 L.N. 411 of 1997Part III except sections 15

and 16;sections 31, 32, 33, 35, 53, 54(2) and 55(1)(c),(d), (h)(iv), (i), (j) and (k), (3)(b) and (d) and

(6)

}}

} 21 October 1998L.N. 330 of 1998

Sections 15 and 16;section 28 (except subsection (9)(b)(vi));section 29;section 30 (except subsection (4)); sections 34,38 (except subsection (3)), 39, 40, 42, 43;section 55(1)(a), (b), (e), (f), (g) and (h)(i), (ii)and (iii), (2), (3)(a) and (c), (4) and (5)

}}}}}

}1 January 1999 L.N. 390 of 1998

Sections 28(9)(b)(vi), 30(4), 38(3), 55(1)(h)(v)and 58;Part VII;section 36, 37 and 44 and Part VI for thepurposes of the application of those sectionsand that Part to and in relation to any propertyin Hong Kong used wholly or primarily forhuman habitation

}}}}

}1 November 1999 L.N. 190 of 1999]

(Originally 48 of 1997)

Part: I PRELIMINARY L.N. 411 of 1997 08/08/1997

Section: 1 Short title and commencement L.N. 130 of 2007 01/07/2007

Remarks:For the saving and transitional provisions relating to the amendments made by the Resolution of the LegislativeCouncil (L.N. 130 of 2007), see paragraph (12) of that Resolution.

(1) This Ordinance may be cited as the Estate Agents Ordinance.


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(2) This Ordinance shall come into operation on a day to be appointed by the Secretary for Transport andHousing by notice in the Gazette, and different days may be so appointed for different provisions and for differentpurposes. (Amended L.N. 106 of 2002; L.N. 130 of 2007)

Section: 2 Interpretation L.N. 130 of 2007 01/07/2007

Remarks:For the saving and transitional provisions relating to the amendments made by the Resolution of the LegislativeCouncil (L.N. 130 of 2007), see paragraph (12) of that Resolution.

(1) In this Ordinance-

"advertisement" () includes every form of advertisement, whether to the public or not, and whether-

(a) in a newspaper or other publication;(b) by television or radio;(c) by the display of posters, notices, signs, labels, showcards or goods;(d) by the distribution of circulars, brochures, catalogues, price lists or any other material;(e) by the exhibition of pictures, models or films; or

(f) inany other way,and any reference to the issue or publication of advertisements shall be construed accordingly;

"the Authority" () means the Estate Agents Authority;

"building" () has the meaning assigned to it in section 2 of the Buildings Ordinance (Cap l23);

"certified public accountant (practising)" ( ) has the meaning assigned to it in the Professional

Accountants Ordinance (Cap 50); (Replaced 23 of 2004 s. 56)

"the Chairman" () means the Chairman of the Authority and any other person when acting as the Chairman;

"the Chief Executive Officer" () means the Chief Executive Officer of the Authority for the time being

appointed under section 11 and any other person when acting as the Chief Executive Officer;

"client" () means any person who whether on his own behalf or on behalf of another person retains or otherwise

uses the services of, or otherwise engages or employs, an estate agent;"committee" () means a committee established under section 8;

"company" () means a company within the meaning of the Companies Ordinance (Cap 32) and in addition it

includes any body corporate-(a) incorporated or otherwise established by or under any other Ordinance;(b) incorporated or otherwise established outside Hong Kong;

"data equipment" () means any equipment which-

(a) automatically processes information;(b) automatically records or stores information;(c) can be used to cause information to be automatically recorded, stored or otherwise processed on other

equipment (wherever situated);

(d) can be used to retrieve information, whether the information is recorded or stored in the equipmentitself or in other equipment (wherever situated);

"data material" () includes-

(a) any disc, tape or other device in which data other than visual images are embodied so as to be capable,with or without the aid of data equipment or other equipment, of being reproduced or otherwiseretrieved from the disc, tape or other device; and

(b) any film, tape or other device in which visual images are embodied so as to be capable, with or withoutthe aid of data equipment or other equipment, of being reproduced or otherwise retrieved from thefilm, tape or other device;

"designated"() means designated by the Authority pursuant to section 17(1)(b);

"development" () means a development involving the construction of a new building;

"disciplinary committee" () means a committee established as a standing committee under section 8(1)for the purposes of performing the function of a disciplinary committee under sections 29 and 30;


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"disposition" () means an act by a person whereby an interest he has in or over a property is affected, and

"acquisition" (), in relation to a property, shall be construed accordingly;

"estate agency agreement" () means 1 or more written documents embodying the terms agreed for the

time being between an estate agent and a client of such agent being terms on and subject to which estate agencywork is to be done by such agent for the client, as from time to time varied or supplemented by an agreement

made in accordance with regulations made under section 46(4);"estate agency work" (), subject to subsection (3), means any work done in the course of business for

a client-(a) being work done in relation to the introduction to the client of a third person who wishes to acquire or

dispose of a property, or to the negotiation for the acquisition or disposition of a property by the client;or

(b) being work done, after the introduction in the course of that business to the client of a third person whowishes to acquire or dispose of a property or the negotiation in the course of that business for theacquisition or disposition of a property by the client, in relation to the acquisition or disposition, as thecase may be, of the property by the client;

"estate agent" (), subject to subsection (3), means a person who in the course of a business (whether or not

he carries on that or any other business) does estate agency work;"estate agent's licence" (), except in section 17(1)(b), means a licence granted under section 17 and

designated as being an estate agent's licence and includes any such licence which is renewed under section 23;

"financial year" () means the period between the commencement of section 12 and the next following 31

March (inclusive), and thereafter-(a) each succeeding period of 12 months ending on 31 March; or(b) such other period as the Financial Secretary may determine in writing;

"group of companies" () means a group of companies within the meaning of the Companies Ordinance

(Cap 32);

"land" () has the meaning assigned to it by section 2 of the Conveyancing and Property Ordinance (Cap 219),

and this definition also applies to property outside Hong Kong;

"lease" () includes sub-lease, tenancy and sub-tenancy and it also includes an agreement for a lease where a partyto the agreement is entitled to have a lease granted;

"licence" (), except when the context otherwise requires, means an estate agent's licence or a salesperson's

licence, and includes a provisional licence, and "licensee" () shall be construed accordingly;

"licensed estate agent" () means a person who is the holder of an estate agent's licence;

"licensed salesperson" () means a person who is the holder of a salesperson's licence;"manager" () means a manager appointed under section 38(1);

"occupation permit" () means an occupation permit, including a temporary occupation permit, issued by

the Building Authority under section 21(2) of the Buildings Ordinance (Cap 123);

"prescribed" () means prescribed by regulation under this Ordinance and made with the Secretary's approval;

"property" (), except in section 6(2)(a), means an interest in land;"provisional licence" () means a licence granted under section 23(3);

"purchaser" () means any person to whom a property is or is to be disposed of, and includes a prospective tenant;

"record" () includes data material;

"the register" (), except in section 10, means the register established and maintained by the Authority under

section 13;

"registered address" () means a registered address for the purposes of this Ordinance;

"salesperson" () means an individual who in the course of his employment by, or as a director of, an estate

agent does estate agency work;

"salesperson's licence" (), except in section 17(1)(b), means a licence granted under section 17 and

designated as being a salesperson's licence and includes any such licence which is renewed under section 23;"Secretary" () means the Secretary for Transport and Housing; (Replaced L.N. 106 of 2002. Amended L.N. 130


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of 2007)

"tenant" () includes a sub-tenant;

"unexecuted" () includes partly executed;

"unexecuted estate agency agreement" () means 1 or more written documents embodying the

terms of a prospective estate agency agreement, or 1 or more written documents embodying a prospective

agreement which, if executed, would supplement or otherwise vary an estate agency agreement and "unexecutedsuch agreement" () shall be construed accordingly;

"vendor" () means any person by whom a property is or is to be disposed of, and includes a prospective landlord;

"the Vice-chairman" () means the Vice-chairman of the Authority and any other person acting as the Vice-

chairman.(Amended 23 of 2004 s. 56)

(2) This Ordinance does not apply to anything done-(a) by an executor, administrator, trustee, liquidator, receiver, trustee or assignee of a bankrupt for the

purposes of or in connection with the performance of his functions as such;(b) in the course of practising his profession by a solicitor, a notary public, an architect or a certified

public accountant (practising) or by any person employed by him and acting in furtherance of that

course; (Amended 23 of 2004 s. 56)(c) by any person in connection with a mortgage or other charge on property, whether done as regards its

creation, transfer, assignment or otherwise;(d) in connection with the publication of advertisements or the dissemination of information by any person

who does no other work which falls within the definition of "estate agency work" in subsection (1);(e) by any person as the vendor or purchaser, or where there is more than 1 vendor or purchaser, a vendor

or purchaser of a property in connection with-(i) where the person is the vendor or a vendor of the property, the disposition of the property;(ii) where the person is the purchaser or a purchaser of the property, the acquisition of the property;

(f) by any person in connection with a property pursuant to instructions received by him in the course ofhis employment, in so far as such thing would have been within the scope of paragraph (e) if done byhis employer;

(g) by a company in connection with the disposition of a property within the meaning of subsection (4), if-(i) the company is a member of the same group of companies of which the vendor or, where there is

more than 1 vendor, a vendor of the property is also a member;(ii) the company, or a member of the same group of companies of which the company isa member,

is a beneficial owner of any of the issued share capital of the vendor or, where there is more than1 vendor, a vendor of the property; or

(iii) pursuant to a development agreement within the meaning of subsection (4) which is for the timebeing in force and entered into by the vendor or, where there is more than 1 vendor, the vendorsof the property in relation to the property-(A) the company is to undertake or has undertaken for the vendor or the vendors, as the case

may be, the development which is the subject of the development agreement, whether with

other companies or not;(B) a member of the same group of companies of which the company is a member is toundertake or has undertaken for the vendor or the vendors, as the case may be, thedevelopment which is the subject of the development agreement, whether with othercompanies or not; or

(C) the company, or a member of the same group of companies of which the company is amember, is a beneficial owner of any of the issued share capital of the company which is toundertake or has undertaken for the vendor or the vendors, as the case may be, thedevelopment which is the subject of the development agreement, whether with othercompanies or not;

(h) by any person is connection with a property pursuant to instructions received by him in the course ofhis employment, in so far as such thing would have been within the scope of paragraph (g) if done by

his employer; or(i) by any person in relation to a present, prospective or former employee of his or of any person by


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whom he also is employed if the thing is done by reason of the employment (whether past, present orfuture),

but this subsection shall not be construed as limiting the scope of section 46(5) or that section as applied by section36(6).

(3) For the avoidance of doubt it is hereby declared that-(a) references in this Ordinance to estate agency work are not to be construed as including references to

work which relates solely to a survey, to a valuation or to a disposition by way of auction or tender;and

(b) references in this Ordinance to an estate agent without qualification are not to be construed asincluding references either to a salesperson or to an auctioneer.

(4) For the purposes of subsection (2)-(a) a reference to a property within the meaning of this subsection shall be a reference to a property which

comprises a specified number of undivided shares in any area of land situated in Hong Kong, togetherwith a right to the exclusive possession of a unit or other interest in a development of that area of landwhere-(i) the development of that area of land has been or is to be undertaken by the vendor or, where

there is more than 1 vendor, the vendors of the property as owner of that area of land (whether

with other companies or not), or by other company or companies for the vendor or the vendors,as the case may be, pursuant to an agreement, however described, entered into by the vendor orthe vendors, as the case may be (whether with other companies or not) for the development ofthat area of land; and

(ii) no assignment or other instrument, other than that in favour of the vendor, or where there is morethan 1 vendor, the vendors of the property, has been executed by way of completion of the saleand purchase of the property as such;

(b) a reference to a development agreement within the meaning of this subsection, in relation to aproperty, shall be a reference to an agreement, however described, entered into for the development ofthe area of land referred to in paragraph (a) in relation to that property;

(c) a reference to employment shall be a reference to employment under a contract of employment.

Section: 3 Exemptions L.N. 411 of 1997 08/08/1997

(1) The Authority may, with the approval of the Secretary, by order exempt any class or description of personsspecified by it in the order from all of the provisions of this Ordinance or, as the case may be, from any 1 or more ofsuch provisions as are so specified.

(2) The Authority shall cause an order under this section to be publishedin the Gazette.(3) The provisions of this section are in addition to those of section 2(2).

Part: II ESTATE AGENTS AUTHORITY L.N. 411 of 1997 08/08/1997

Section: 4 The Authority L.N. 411 of 1997 08/08/1997

(1) There is hereby established a body to be known in the English language as the Estate Agents Authority and

in the Chinese language as "".

(2) The Authority shall be a body corporate.(3) The provisions contained in the Schedule apply to the Authority.

Section: 5 Principal functions of the Authority L.N. 411 of 1997 08/08/1997

The principal functions of the Authority are-(a) to regulate and control the practice of estate agents and salespersons;(b) to take such action as the Authority considers appropriate or necessary to promote integrity and

competence amongst, or maintain or enhance the status of, estate agents and salespersons; and(c) if it thinks fit, to liaise with educational institutions and training bodies for the purposes of the


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provision by or on behalf of such institutions or bodies of training courses which are designed toensure competency or establish standards of conduct or which are otherwise relevant to estate agencywork.

Section: 6 General powers, etc. of the Authority L.N. 411 of 1997 08/08/1997

(1) The Authority may do such things as are expedient for or conducive to the performance of its functions orwhich, in the opinion of the Authority, are necessary to facilitate the proper performance of those functions.

(2) Without affecting the generality of subsection (1), the Authority may-(a) acquire, hold and dispose of property of any kind including land and grant leases of land (including

parts of buildings);(b) to such extent as it considers expedient, invest any of its moneys which are available for investment in

such classes or descriptions of investment as the Financial Secretary may in writing specify for thepurposes of this paragraph;

(c) subject to the approval of the Financial Secretary, borrow moneys, in such manner and on such termsand conditions as it thinks fit;

(d) accept gifts whether subject to any trust or other condition or not;

(e) settle any dispute referred to the Authority for determination under section 49.

Section: 7 Directions by Chief Executive L.N. 411 of 1997;44 of 2000

08/08/1997

Remarks:Adaptation amendments retroactively made - see 44 of 2000 s. 3

(1) The Chief Executive may, if he considers the public interest so requires, give to the Authority such writtengeneral directions as to the performance of any of its functions as he considers appropriate.

(2) The Authority shall, as soon as practicable, comply with any direction under this section.(3) A direction under this section shall remain in force until it is withdrawn by the Chief Executive.

(4) Nothing in this section shall be construed as enabling the Chief Executive to exercise any power or controlin relation to-

(a) any particular application or other matter with which the Authority or a committee is concerned; or(b) any particular case with which a tribunal appointed under section 32(6) is concerned or which is

pending.(Amended 44 of 2000 s. 3)

Section: 8 Authority may establish committees L.N. 411 of 1997 08/08/1997

(1) The Authority may establish any committee, whether as a standing committee or otherwise, and, besidesexercising as regards such a committee the power conferred on the Authority by section 9, may refer or assign anymatter for consideration by the committee.

(2) (a) Each of the members of a committee shall be appointed by the Authority.(b) A committee shall consist of at least 3 members.(c) (i) Subject to subparagraph (ii), a committee may include persons who are not members of the

Authority.(ii) A majority of the members of a committee established by the Authority as a standing committee

shall be members of the Authority.(d) Where a committee is established, the Authority shall appoint a person to be the chairman of that

committee.(3) A committee may be dissolved at any time by the Authority by resolution.(4) Any reference or assignment under subsection (1) and every appointment under subsection (2) may be

withdrawn or revoked by the Authority, and no such reference or assignment shall prevent or restrict the concurrentperformance by the Authority of any of its functions.

(5) A committee may regulate its own procedure and business.


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Section: 9 Delegation and sub-delegation of Authority's functions L.N. 411 of 1997 08/08/1997

(1) The Authority may delegate any of the Authority's functions, other than a function specified in subsection(3), to a committee, the Chief Executive Officer or any other officer of the Authority.

(2) (a) A delegation under this section shall not prevent or restrict the concurrent performance by theAuthority of the function delegated.

(b) A delegation under this section may contain terms and conditions relating to the performance of thefunction delegated.

(3) The functions which the Authority may not delegate under subsection (1) are-(a) the power to delegate conferred by subsection (1);(b) the appointment of a committee under section 8;(c) a power conferred by section 11(2) or (3) or 56 or any other regulation making power conferred on the

Authority by this Ordinance.(4) The Authority may revoke a delegation under this section.(5) Where a person purports to act pursuant to a delegation under this section, he shall be presumed, until the

contrary is proved, to be acting in accordance with the terms and conditions of the delegation.

Section: 10 Disclosure of interest, etc. L.N. 411 of 1997 08/08/1997

(1) (a) As soon as practicable after appointment to membership or as and when occasion may thereafterrequire, a member of the Authority (including the Chairman and Vice-chairman) shall declare to theAuthority in such manner as is for the time being determined by the Authority (whether by standingorders or otherwise) any interest of his which is of a class or description so determined.

(b) The Authority shall establish and maintain a register for the purposes of this subsection in such form asthe Authority shall decide.

(c) Where a member of the Authority has declared any interest under this subsection, the Authority shall-(i) where no particulars inrespect of such member has been entered in the register established and

maintained under paragraph (b), cause the name of the member, together with the particulars ofall interests so declared, to be entered in the register in such manner as the Authority shall

determine;(ii) where particulars in respect of such member have been entered in the register established and

maintained under paragraph (b), cause the particulars of all interests so declared to be entered inthe register by amending or adding to the particulars already entered in the register in suchmanner as the Authority shall determine.

(d) The Authority shall make the register established and maintained under paragraph (b) available forpublic inspection at such reasonable time as the Authority shall determine.

(2) A member of the Authority (including the Chairman and Vice-chairman) who is in any way directly orindirectly interested in a contract made or proposed to be made by the Authority, or in any other matter whatsoeverwhich is to be considered, decided or determined by the Authority, shall comply with the following requirements-

(a) he shall (if present) disclose to the relevant meeting of the Authority the nature of his interest (andsuch disclosure shall be recorded in the minutes of the meeting);

(b) he shall withdraw from the meeting while the matter is being discussed or considered unless-(i) if he is not the person presiding at such meeting of the Authority, he is permitted by the person so

presiding to take part in such discussion or consideration; or(ii) if he is the person so presiding, a majority of the other members present at the meeting decides so

to permit him;(c) he shall not vote or otherwise act as a member of the Authority in relation to the matter unless

otherwise permitted; and(d) he shall neither influence nor seek to influence a decision of the Authority as regards the matter

otherwise than with the Chairman's prior approval or inaccordance with paragraph (b).(3) Where a disclosure is made under subsection (2) and the person concerned is neither required to withdraw

from the relevant meeting nor permitted to vote, then for so long as the matter to which the disclosure relates is being

discussed or otherwise considered at such meeting the presence of the person by whom the disclosure was made shallbe disregarded for the purposes of forming a quorum for the meeting.(4) The validity of any proceedings of the Authority shall not be affected by the failure by a member of the


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Authority to comply with a provision of this section.

Section: 11 Staff of Authority, consultants L.N. 411 of 1997 08/08/1997

(1) The Authority may appoint any person as it thinks fit to be its Chief Executive Officer or other officers oremployees.

(2) Each of the Authority's officers (including the Chief Executive Officer) and the other employees of theAuthority shall, as regards their employment, be paid such remuneration and allowances and shall hold their offices oremployment on such other terms and conditions as the Authority may determine.

(3) The Authority may make arrangements for or in respect of the provision and maintenance of such schemes(whether contributory or not) for the payment to or in respect of its employees of such retirement benefits, gratuities orother superannuation allowances as it may determine.

(4) The Authority may from time to time engage such consultants or advisers as it may consider necessary orexpedient.

Section: 12 Accountants and audits, Authority's report L.N. 411 of 1997 08/08/1997

(1) (a) The Authority shall keep proper accounts and records of its transactions and shall within 3 monthsafter the expiry of a particular financial year, or such longer period as the Secretary may allow, preparea statement of accounts.

(b) A statement of accounts referred to in paragraph (a) shall include an income and expenditure accountfor the financial year to which it relates and a balance sheet as on the last day of that financial year.

(2) A statement of accounts referred to in subsection (1)(a) shall give a true and fair view of the state of affairsof the Authority as at the end of the financial year to which the statement relates.

(3) A statement of accounts referred to in subsection (1)(a) shall be audited by an auditor who shall make awritten report thereon to the Authority.

(4) The auditor by whom an audit required by subsection (3) is to be carried out shall be appointed by theAuthority and any such appointment shall be subject to the Secretary's approval.

(5) The Authority shall within 2 months of the receipt by it of the auditor's report in respect of itsaccounts for a

particular financial year, or such longer period as the Secretary may allow, and in any event not later than 6 monthsafter the expiration of that financial year unless the Secretary otherwise allows, furnish to the Secretary-

(a) a report on the affairs of the Authority for that financial year;(b) a copy of its statement of accounts for that financial year; and(c) a copy of the auditor's report for that financial year,

and the Secretary shall cause copies thereof to be laid on the table of the Legislative Council.(6) Nothing in this section shall be construed as affecting section 15 of the Audit Ordinance (Cap 122).

Part: III REGISTRATION AND LICENSING L.N. 330 of 1998 21/10/1998

Section: 13 The register L.N. 330 of 1998 21/10/1998

(1) The Authority shall establish and maintain a register for the purposes of this Ordinance in such form as theAuthority shall decide.

(2) The register shall contain-(a) the following particulars as regards every licence granted under this Ordinance-

(i) the name of the person to whom the licence was granted;(ii) the period or periods for which the licence was granted, including the period or periods (if any)

for which the licence was renewed;(iii) if the licence is suspended, the period during which it is suspended; and(iv) if the licence is revoked, the date of revocation;

(b) separate lists of-

(i) the individuals to whom estate agent's licences have been granted, being licences which are forthe time being in force, together with the registered addresses of those individuals;


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(ii) the companies to which estate agent's licences have been granted, being licences which are forthe time being in force, together with the registered addresses of those companies;

(iii) the individuals to whom salesperson's licences have been granted, being licences which are forthe time being in force, together with the registered addresses of those individuals; and

(c) such other particulars (if any) as may be prescribed.(3) The Authority may at any time publish, in such manner as it considers appropriate, the names and registered

addresses of the companies or other persons who are for the time being registered in the register, or the names andaddresses of a particular class of companies or other persons who are so registered.

(4) (a) A document, signed by the Chief Executive Officer and certified by him as being a true copy of orextract from any part of the register shall, until the contrary is proved, be evidence of the particularsentered in the part of the register to which the document so signed and certified relates.

(b) It shall not be necessary in legal proceedings either to prove a signature on a document referred to inparagraph (a) or to prove that such a signature is that of the person holding the office of ChiefExecutive Officer on the date of the document.

(5) The Authority shall make the register available for public inspection, at such reasonable time as theAuthority shall determine, on payment of a prescribed fee.

(6) Where a person applies to the Authority for a copy of or extract from any part of the register to be signed

and certified as described in subsection (4), the Authority shall furnish the person with the copy or extract sought onpayment of the prescribed fee (if any).

Section: 14 Registered address L.N. 330 of 1998 21/10/1998

(1) Subject to subsection (4), every licensee shall have an address in Hong Kong to which all communicationsand all notices may be sent.

(2) The registered address shall be stated in an application for the grant or renewal of a licence.(3) (a) Where an address ceases to be the registered address of a licensee, the licensee shall within the period

of 14 days beginning on such cesser, notify the Authority in writing of another address to which allcommunications and notices may be sent.

(b) Where the Authority receives a notification referred to in paragraph (a), it shall cause the address

referred to in the notification to be entered appropriately in the register and thereupon that addressshall be the registered address of the licensee by whom or on whose behalf the notification was sent tothe Authority.

(4) In the case of a company within the meaning of the Companies Ordinance (Cap 32), the registered officefor the time being of the company shall be the registered address of the company for the purposes of subsection (1).

Section: 15 Estate agents to be licensed L.N. 390 of 1998 01/01/1999

(1) Subject to this Ordinance, an individual shall not, either by himself or as a member of a partnership-(a) exercise or carry on or advertise, notify or state that he exercises or carries on, or is willing to exercise

or carry on, the business of doing estate agency work as an estate agent; or(b) act as an estate agent; or(c) in any way hold himself out to the public as being ready to undertake, whether or not for payment or

other remuneration (whether monetary or otherwise), estate agency work as an estate agent,unless he is a licensed estate agent.

(2) Subject to this Ordinance, a company shall not-(a) exercise or carry on or advertise, notify or state that it exercises or carries on, or is willing to exercise

or carry on, the business of doing estate agency work as an estate agent; or(b) act as an estate agent; or(c) in any way hold itself out to the public as being ready to undertake, whether or not for payment or

other remuneration (whether monetary or otherwise), estate agency work as an estate agent,unless it is a licensed estate agent.

Section: 16 Salespersons to be licensed L.N. 390 of 1998 01/01/1999

(1) Subject to this Ordinance-


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(a) unless he is the holder of a licence, a person shall not be or act as a salesperson for any licensed estateagent, nor shall he hold himself out to the public as being a salesperson;

(b) a person shall neither accept employment or an appointment as a salesperson from, nor act as asalesperson for, any other person who is required by this Ordinance to hold, but is not the holder of, anestate agent's licence.

(2) Subsection (1) shall not be construed as-(a) requiring any licensed salesperson, by reason only of the fact that he does estate agency work solely as

a salesperson, to hold an estate agent's licence; or(b) requiring any licensed estate agent to hold a salesperson's licence.

Section: 17 Licences and conditions L.N. 330 of 1998 21/10/1998

(1) (a) The Authority may grant licences for the purposes of this Ordinance.(b) Where a licence isgranted, the Authority shall designate the licence as being either an estate agent's

licence or a salesperson's licence.(2) A licence granted for the purposes of this Ordinance is not transferable.(3) The Authority may attach to a licence such conditions as it considers appropriate and conditions so attached

to a licence may include conditions prescribed under section 56.(4) Any conditions attached to a licence under this section shall be specified in the licence.

Section: 18 Right to grant of licences L.N. 330 of 1998 21/10/1998

(1) Notwithstanding sections 19, 20 and 21, where, within the relevant period-(a) an individual or company makes an application for the grant of an estate agent's licence to take effect

at any time after the grant thereof and within the relevant period; or(b) an individual makes an application for the grant of a salesperson's licence to take effect at any time

after the grant thereof and within the relevant period,then, subject to subsection (2) and to payment of the prescribed fee and, in the case of an individual, provided he hasattained the age of 18 years and in any case, provided also that the applicant has complied with any requirement

prescribed under section 56(1)(d) which is applicable to him or it, the applicant shall be entitled to be granted thelicence sought.

(2) (a) No person making an application in accordance with subsection (1) shall be entitled to be granted thelicence sought in the application unless the Authority considers that-(i) the person is a fit and proper person to hold the licence; and(ii) in the case of a company making an application for the grant of an estate agent's licence, each of

the company's directors for the time being is a fit and proper person for the purposes of thisOrdinance.

(b) In determining whether a person is fit and proper for the purposes of paragraph (a)(i) the Authorityshall have regard to-(i) in the case of an individual making an application for the grant of an estate agent's licence, the

matters described in section 19(2)(a), (c) and (d);(ii) in the case of a company making an application for the grant of an estate agent's licence, the

matters described in section 20(2)(a);(iii) in the case of an individual making an application for the grant of a salesperson's licence, the

matters described in section 21(3)(c).(c) In determining whether a person who is a director of a company making an application for the grant of

an estate agent's licence is a fit and proper person for the purposes of this Ordinance, the Authorityshall have regard to the matters described in section 20(3)(a), (c) and (d).

(3) In this section "the relevant period" () means the period determined for the purposes of this

section by the Authority with the prior approval of the Secretary and specified in a notice published in the Gazette.

Section: 19 Grant of estate agent's licences to individuals restricted L.N. 330 of 1998 21/10/1998

(1) An individual shall not be eligible to be granted or hold or continue to hold an estate agent's licence unless-


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(a) he has attained the age which is for the time being prescribed for the purposes of this subsection;(b) he satisfies the Authority-

(i) that he has a good understanding of any regulations made for the time being under section56(1)(j) and which apply to a licensed estate agent;

(ii) that he has the educational qualifications or experience or both prescribed for the time beingunder section 56(1)(d) and which apply to him; and

(iii) that he complies with such other requirements (if any) as are prescribed for the time being undersection 56(1)(g) and which apply to him; and

(c) the Authority otherwise considers him a fit and proper person to hold an estate agent's licence.(2) In determining whether or not a person is fit and proper for the purpose of holding an estate agent's licence,

the Authority shall have regard to the following-(a) the fact that the person is an undischarged bankrupt, or has, within the 5 years immediately prior to the

day on which the Authority considers, or, where appropriate, begins to consider the matter, made acomposition or scheme of arrangement with his creditors;

(b) the fact that the person is a director or officer of a company which is for the time being disqualifiedunder this Ordinance for holding a licence, or was a director or officer of that company at the datewhen the company was so disqualified;

(c) the fact that the person is a mentally disordered person or a patient within, in either case, the meaningof section 2 of the Mental Health Ordinance (Cap 136);(d) any conviction, whether in Hong Kong or elsewhere, of the person for any offence (other than an

offence under this Ordinance), being a conviction as regards which it was necessary to find that theperson acted fraudulently, corruptly or dishonestly; and

(e) any conviction of the person under this Ordinance in respect of which he has been sentenced toimprisonment, whether the sentence is suspended or not.

Section: 20 Grant of estate agent's licences to companies restricted L.N. 330 of 1998 21/10/1998

(1) A company shall not be eligible to be granted or to hold or continue to hold an estate agent's licence unless-(a) not less than a prescribed number or proportion of the company's directors are, and each of its directors

who is engaged in its business as an estate agent is, a licensed estate agent;(b) there is for the time being a licensed estate agent who is in effective control of the company's business

as an estate agent;(c) each of the company's directors for the time being is, in the opinion of the Authority, a fit and proper

person for the purposes of this Ordinance;(d) the Authority is satisfied that the company complies with such other requirements (if any) as are

prescribed for the time being under section 56(1)(g) and which apply to the company; and(e) the Authority otherwise considers the company a fit and proper person to hold an estate agent's licence.

(2) In determining whether a company is fit and proper for the purpose of holding an estate agent's licence, theAuthority shall have regard to the following-

(a) the fact that the company is in liquidation or is the subject of a winding-up order, or there is a receiverappointed in relation to it, or it has, within the 5 years immediately prior to the day on which the

Authority considers, or, where appropriate, begins to consider the matter, entered into a composition orscheme of arrangement with its creditors; and

(b) any conviction of the company under this Ordinance.(3) In determining whether a person who is a director of a company referred to in subsection (1) is a fit and

proper person for the purposes of this Ordinance, the Authority shall have regard to the following-(a) the fact that-

(i) where the person is an individual, such individual is an undischarged bankrupt, or has, within the5 years immediately prior to the day on which the Authority considers, or, where appropriate,begins to consider the matter, made a composition or scheme of arrangement with his creditors;or

(ii) where the person is a company, such company is in liquidation or is the subject of a winding-uporder, or there is a receiver appointed in relation to it, or that it has, within the 5 years specifiedin subparagraph (i), entered into a composition or scheme of arrangement with its creditors;

(b) the fact that the person is a director or officer of a company which is for the time being disqualified


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under this Ordinance for holding a licence, or was a director or other officer of that company at thedate when the company was so disqualified;

(c) the fact that the person isa mentally disordered person or a patient within, in either case, the meaningof section 2 of the Mental Health Ordinance (Cap 136);

(d) any conviction, whether in Hong Kong or elsewhere, of the person for any offence (other than anoffence under this Ordinance), being a conviction as regards which it was necessary to find that theperson acted fraudulently, corruptly or dishonestly; and


Section: 21 Grant of salesperson's licences restricted L.N. 330 of 1998 21/10/1998

(1) A salesperson's licence shall not be granted to a body of persons, whether corporate or unincorporate.(2) An individual shall not be eligible to be granted or hold or continue to hold a salesperson's licence unless-

(a) he has attained the age which is for the time being prescribed for the purposes of this subsection;(b) he satisfies the Authority-

(i) that he has a good understanding of any regulations made for the time being under section

56(1)(j) and which apply to a licensed salesperson;(ii) that he has the educational qualifications or experience or both prescribed for the time being inregulations under section 56(1)(d) and which apply to him; and

(iii) that he complies with such other requirements (if any) as are prescribed for the time being inregulations under section 56(1)(g) and which apply to him; and

(c) the Authority otherwise considers him a fit and proper person to hold a salespersons licence.(3) In determining whether a person is fit and proper for the purpose of holding a salesperson's licence, the

Authority shall have regard to the following-(a) the fact that the person is an undischarged bankrupt, or has, within the 5 years immediately prior to the

day on which the Authority considers, or, where appropriate, begins to consider the matter, made acomposition or scheme of arrangement with his creditors;

(b) the fact that the person is a director or officer of a company which is for the time being disqualified

under this Ordinance for holding a licence, or was a director or officer of that company at the datewhen the company was so disqualified;

(c) the fact that the person is a mentally disordered person or a patient within, in either case, the meaningof section 2 of the Mental Health Ordinance (Cap 136);

(d) any conviction, whether in Hong Kong or elsewhere, of the person for any offence (other than anoffence under this Ordinance), being a conviction as regards which it was necessary to find that theperson acted fraudulently, corruptly or dishonestly; and


Section: 22 Applications for grant of licences L.N. 330 of 1998 21/10/1998

(1) An application for the grant of a licence shall be made to the Authority in the prescribed manner and be inthe prescribed form and it shall also contain such particulars (if any) as are prescribed under section 56(1)(b) andapply in relation to it.

(2) Where a licence is granted under this Ordinance, the Authority shall cause notice thereof to be published inthe Gazette.

Section: 23 Renewal of licences L.N. 330 of 1998 21/10/1998

(1) A licensee may apply in the prescribed manner to the Authority to renew the relevant licence.(2) Where an application is allowed under this section, subject to compliance with any regulations under

section 56 which are relevant to the application, the Authority may in allowing the application do all or any of the

following, namely, vary or remove conditions already attached to the licence or attach new conditions to the licence.(3) Pending the determination of an application under this section, the Authority shall, where the licence whoserenewal is sought has expired, grant a provisional licence to the applicant and whether or not conditions were attached


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to the licence whose renewal is sought, the Authority when granting such a provisional licence may attach thereto suchconditions (if any) as it considers appropriate.

(4) Where an application under this section is allowed, the Authority shall cause notice thereof to be publishedin the Gazette.

(5) (a) An application under subsection (1) may, and may only, be made before the licence in respect of whichrenewal is sought expires.

(b) Where an application under this section is allowed, the period of renewal shall be such as the Authorityspecifies when allowing the application and such period shall begin to run or, where appropriate, shallbe deemed to have begun to run, immediately after the day on which the relevant licence wouldotherwise have expired.

Section: 24 Refusal of application for licence or renewal L.N. 330 of 1998 21/10/1998

(1) The Authority may refuse an application for the grant or renewal of a licence if, and only if it is satisfiedthat any 1 or more of the requirements of such of the following as apply in the particular case, namely, section 18, 19,20, 21 or 22, are not met or complied with by the applicant or that any 1 or more of such requirements or otherprovisions of regulations under this Ordinance as are relevant to the application are not complied with or otherwise

satisfied.(2) Where an application for the grant or renewal of a licence is refused, the Authority shall, within the periodof 21 days beginning on the date of the refusal, notify the applicant in writing of its decision and such notificationshall state the reasons for the decision.

Section: 25 Application for licence, etc. not to be made withinprescribed period

L.N. 330 of 1998 21/10/1998

(1) Where-(a) an application for the grant or renewal of a licence is refused; or(b) a licence is revoked by the Authority,

the applicant or, where appropriate, the former licensee shall not be entitled to make an application under section 22 or

23 within the period prescribed for the purposes of this section.(2) Notwithstanding subsection (1), the Authority may allow an application under section 22 or 23 within the

period prescribed for the purposes of this section if, and only if, it is satisfied by the applicant that to refuse to allowthe application would, having regard to the particular circumstances of the case, be unreasonable.

(3) Subject to subsection (2), an applicant described in subsection (1) shall, during the period prescribed for thepurposes of this section, be regarded as being disqualified for holding a licence.

Section: 26 Form of licences, payment of licence fee and duration oflicences

L.N. 330 of 1998 21/10/1998

(1) A licence shall be in the prescribed form and shall not have effect unless and until the relevant prescribedfee has been paid by or on behalf of the applicant for the licence.

(2) Subject to any regulation made in that regard under section 56, the period during which a licence is to be inforce shall be that specified in the licence.

Section: 27 Suspension or revocation of licences 32 of 2000 09/06/2000

(1) Subject to the provisions of this section, the Authority may suspend a licence for such a period of time as itthinks fit, or revoke a licence.

(2) The Authority may suspend or revoke a licence-(a) if in the case of an estate agent's licence, a notice is received under section 40(1);(b) if in the case of a salesperson's licence, a notice is received under section 40(1) and if, and only if, the

Authority considers that the relevant licensee is no longer a fit and proper person to hold a

salesperson's licence within the meaning of section 21(2)(c);(c) if in the opinion of the Authority, the licensee has been generally doing estate agency work in a


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manner which, in such opinion, is contrary to the public interest as perceived by it and if in suchopinion to permit him to continue so to do such work in such manner would be contrary to the publicinterest as so perceived;

(d) if the relevant licensee is not eligible to hold or continue to hold the licence under section 19, 20 or 21,or is not entitled to be granted the licence under section 18, as the case may be;

(e) if the relevant licensee has failed to pay any fee, charge or penalty charged or imposed under thisOrdinance, and the period within which it should have been paid has expired;

(f) if the relevant licensee has failed to comply with any of the conditions attached to the licence; or(g) if the relevant licensee has contravened or failed to comply with any requirements or other provisions

of this Ordinance.(3) (a) Where the Authority proposes to suspend or revoke a licence it shall give the relevant licensee written

notice of the proposal and the reasons for it.(b) A notice under this subsection shall state that within the period of 21 days beginning on the date of the

notice, or within such longer period as the Authority may allow in the particular case, representationsregarding the proposed suspension or revocation, as the case may be, may be made in writing to theAuthority by or on behalf of the licensee concerned (which representations are hereby authorized to bemade).

(4) Where representations are made pursuant to subsection (3)(b), the Authority shall not suspend or revoke thelicence concerned without having considered the representations.(5) (a) Where the Authority suspends or revokes a licence pursuant to this section, it shall-

(i) within the period of 21 days beginning on the date of the suspension or revocation, notify therelevant licensee or, where appropriate, former such licensee, in writing of the decision and suchnotice shall state the reasons for the Authority's decision together with, in the case of asuspension, the period for which the relevant licence is suspended; and

(ii) publish notice of the decision in the Gazette.(b) A suspension or revocation referred to in paragraph (a) shall take effect on the date of the relevant

notice under paragraph (a)(i), or such later date as may be specified in the notice, and such suspensionor revocation shall have effect as regards a particular case notwithstanding any 1 or more of thefollowing, namely, that the licensee concerned has appealed under section 31, that the time for the

making of such an appeal has not expired, or that a notice has not yet been published pursuant toparagraph (a)(ii). (Amended 32 of 2000 s. 48)

(6) Where a licence is suspended under this section, the Authority may in its discretion shorten the period forwhich the licence is suspended or lift the suspension.

(7) (a) Where the Authority shortens the period of suspension of a licence or lifts such a suspension, it shall-(i) within the period of 21 days beginning on the date of its decision, notify the relevant licensee or,

where appropriate, the former such licensee in writing of the decision and such notice shall statethe period for which suspension of the relevant licence has been shortened; and

(ii) publish notice of the decision in the Gazette.(b) The shortening of a period or the lifting of a suspension referred to in paragraph (a) shall take effect on

the date of the relevant notice under paragraph (a)(i) to the relevant licensee or, where appropriate, theformer such licensee, or such later date as may be specified in the notice, and such a shortening or

lifting shall have effect as regards a particular case notwithstanding the fact that such notice has not yetbeen published pursuant to paragraph (a)(ii).

(8) Where any licence is suspended or revoked under this section, no few or other sum paid in respect of thegrant or renewal of the licence shall be refunded.

Part: IV INVESTIGATIONS AND DISCIPLINE L.N. 390 of 1998 01/01/1999

Section: 28 Investigations 23 of 2004 08/09/2004

Remarks:

Subsection (9)(b)(vi) has only come into operation since 1 November 1999.

(1) Where the Authority has reason to believe that a requirement or other provision of this Ordinance may not


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have been complied with or, where appropriate, may have been contravened by a licensee, the Authority may appointin writing 1 or more of its employees, or 1 or more certified public accountants (practising), or both ("theinvestigator") to conduct such investigation as theAuthority considers necessary. (Amended 23 of 2004 s. 56)

(2) Where any matter is investigated under subsection (1), the licensee in relation to whom the investigation isconducted is, for the purposes of this section, referred to as "the licensee under investigation".

(3) The Authority shall inform in writing the licensee under investigation the reasons for which theinvestigation is conducted in relation to him as soon as reasonably practicable after the appointment of theinvestigator.

(4) Any costs or expenses incurred by a person (other than an employee of the Authority) acting as theinvestigator under this section shall be paid out of moneys provided by the Legislative Council.

(5) The licensee under investigation or any person who is reasonably believed or suspected by the investigatorto have in his possession or under his control any record or other document which contains, or which is likely tocontain, information relevant to an investigation under this section, or who is so believed or suspected of otherwisehaving such information in his possession or under his control, shall-

(a) if reasonably required by the investigator, produce to the investigator, within such time and at suchplace as he may reasonably require, any record or other document specified by the investigator or anyrecord or other document which is of a class or description so specified, which, in the investigator's

opinion in either case, is, or may be, relevant to the investigation, and which is in his possession orunder his control;(b) if reasonably required by the investigator, give to him such explanation or further particulars in respect

of a record or other document produced in compliance with a requirement under paragraph (a) as theinvestigator shall specify; and

(c) if reasonably required by the investigator, give to the investigator all assistance in connection with theinvestigation which he is reasonably able to give.

(6) The investigator shall be furnished by the Authority with a copy of the appointment under subsection (1)and shall, before exercising any power under this section, produce the copy to the person concerned for his inspection.

(7) (a) The investigator may, and if so directed by the Authority shall, make interim reports to the Authority,and on the conclusion of his investigation shall make a final report to the Authority.

(b) In any final report made to the Authority under paragraph (a), the investigator shall make

recommendations to the Authority as to whether the exercise of powers under section 30 should beconsidered.

(c) The Authority shall, as soon as reasonably practicable after the receipt of any final report made to itunder paragraph (a), inform the licensee under investigation, in such manner as the Authority thinksfit, of-(i) the result of the investigation;(ii) any recommendations made by the investigator as to whether exercise of powers under section

30 should be considered; and(iii) such other comments arising from the investigation as the Authority thinks fit to make.

(8) (a) Where the licensee under investigation or any other person is convicted by a court or magistrate on aprosecution instituted as a result of an investigation under this section, the court or magistrate mayorder him to pay to the Authority the whole or part of the costs or expenses of the investigation.

(b) Where an amount is paid to the Authority pursuant either to an order under paragraph (a) or to an orderunder section 30(1)(vii) ("the first amount") and costs or expenses are or are to be paid pursuant tosubsection (4) ("the second amount"), the Authority shall pay to the Financial Secretary an amountequal to the second amount unless the first amount is less than the second amount in which case it shallso pay an amount equal to the first amount.

(9) (a) Subject to paragraph (b) and except in the performance of a function under this section, theinvestigator and the Authority and any person who performs or assists the investigator or the Authorityin the performance of a function under this section shall maintain confidentiality in respect of allmatters and information produced or given or otherwise furnished for the purposes of an investigationunder this section.

(b) Nothing in paragraph (a) shall prevent the disclosure of information-(i) with a view to the institution or otherwise for the purposes of any criminal proceedings or any

investigation inconnection therewith, whether under this Ordinance or otherwise, in Hong Kong;(ii) in connection with any civilproceedings to which the Authority is a party;


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(iii) in connection with any inquiry conducted pursuant to section 29;(iv) in connection with the exercise of any power under section 30;(v) in connection with any appeal conducted pursuant to section 31;(vi) in connection with the proceedings of a determination of any dispute under section 49.

(10) Nothing in this section shall be construed as requiring an institution authorized to carry on banking businessor the business of taking deposits under the Banking Ordinance (Cap 155) to disclose any information or produce anyrecord or other document relating to the affairs of a customer to the investigator unless-

(a) the customer is a person whom the investigator has reason to believe may be able to give informationrelevant to the investigation; and

(b) the Authority is satisfied that the disclosure or production is necessary for the purposes of theinvestigation and certifies in writing that that is the case,

and, where the conditions in paragraphs (a) and (b) are met in respect of any such institution, such institution shallcomply with any provision of subsection (5) that applies in the particular case.

(11) In this section, "produce" (), in relation to any record or other document; includes produce by way of

supply of a reproduction of the record or other document, or, where the record or other document is kept otherwisethan in a legible form, produce by way of supply of a reproduction of the record or other document in a legible form.

Section: 29 Complaints L.N. 390 of 1998 01/01/1999

(1) A complaint that a licensee-(a) has failed to comply with the requirements of, or has contravened, any 1 or more provisions of this

Ordinance with which he is required to comply and which are specified in the complaint;(b) is not eligible to hold or continue to hold a licence under section 19, 20 or 21, or is not entitled to be

granted a licence under section 18, as the case may be;(c) has failed to comply with a specified condition attached to his licence; or(d) has failed to comply with, or has contravened, 1 or more regulations made under this Ordinance and

which are so specified,shall be made to the Authority which may, in its discretion, deal with the matter itself or refer the matter to adisciplinary committee.

(2) Where the Chief Executive Officer has reason to believe that subsection (1)(a), (b), (c) or (d) applies to alicensee he shall submit the facts to the Authority which may, in its discretion, deal with the matter itself or refer thematter to a disciplinary committee.

(3) The Authority or the disciplinary committee to which the matter is referred under subsection (1) or (2),having considered the case, may in its discretion conduct such inquiry as it thinks fit.

Section: 30 Disciplinary powers L.N. 190 of 1999 01/11/1999

Remarks:Subsection (4) has only come into operation since 1 November 1999.

(1) Where-(a) (i) an investigator within the meaning of section 28 recommends to the Authority that exercise ofpowers under this section should be considered; and

(ii) the Authority or, where the Authority refers the matter to a disciplinary committee, thedisciplinary committee accepts the recommendation; or

(b) (i) a complaint made under section 29(1) or a submission made under section 29(2) is considered bythe Authority or, as the case may be, a disciplinary committee; and

(ii) the Authority or, as the case may be, the disciplinary committee is satisfied that the complaint orsubmission is well-founded,

the Authority or, where appropriate, the disciplinary committee may, subject to this section, exercise such of thefollowing powers as it considers appropriate-

(i) admonish or reprimand the licensee concerned;

(ii) attach specified conditions to the licence concerned;(iii) vary any condition already attached to such licence;


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(iv) suspend such licence for a specified period not exceeding 2 years;(v) revoke such licence;(vi) impose a fine of a specified amount not exceeding $300000;(vii) make such order as it thinks fit with regard to the payment of any 1 or more of the following, namely,

the whole or part of its costs regarding the proceedings, or, where a recommendation referred to inparagraph (a) is made, the whole or part of the costs of the investigator by whom the recommendationwas made, or the whole or part of the costs of a complainant under section 29 or of the licenseeconcerned.

(2) Before any power is exercised under subsection (1), the licensee concerned and any other person againstwhom the power is exercised shall be given a reasonable opportunity of being heard.

(3) No power shall be exercised under subsection (1) against a licensee, if the licensee shows-(a) in a case where subsection (1)(a) applies, that he had taken all reasonable steps and exercised all due

diligence to avoid the non-compliance or contravention which is the subject of the investigation inquestion;

(b) in a case where subsection (1)(b) applies, that he had taken all reasonable steps and exercised all duediligence to avoid the occurrence of the matter which is the subject of the complaint or submission (asthe case may be) in question.

(4) Without limiting the generality of subsection (3), where the investigation or the complaint or submission inquestion relates to non-compliance with or contravention of section 36(1)(a)(ii), the licensee concerned shall, for thepurposes of that subsection, be regarded as having shown that he had taken all reasonable steps and exercised all duediligence to avoid such non-compliance or contravention, if he shows that-

(a) he relied on information obtained from a source prescribed for the purposes of this subsection inrespect of such information;

(b) it was reasonable for him to have relied on such information; and(c) he had taken all steps reasonably open to him to avoid the non-compliance or contravention.

(5) (a) Where any of the powers described are exercised, the Authority-(i) shall within the period of 21 days beginning on the date of the relevant decision, notify in writing

the licensee and any other person against whom the decision is made of the decision and suchnotice shall state the reasons for the decision together with, in case the licence concerned is

suspended, the period during which such licence is suspended; and(ii) (A) shall, where any of the powers are exercised under any of the provisions of subsection

(1)(ii) to (v), publish notice of the decision in the Gazette;.(B) may, where none of the powers are exercised under any of the provisions of subsection

(1)(ii) to (v), publish notice of the decision in such manner as it thinks fit.(b) The exercise of a power referred to in paragraph (a) shall have effect on the date of the relevant notice

under paragraph (a)(i), or on such later date as may be specified in the notice, and such exercise shallhave effect as regards a particular case notwithstanding any 1 or more of the following, namely, thatthe relevant licensee has appealed under section 31, that the time for making such an appeal has notexpired, or that notice has not yet been published pursuant to paragraph (a)(ii).

(6) Where a licence is suspended or revoked under this section, no fee or other sum paid in respect of the grantor renewal of the licence shall be refunded.

(7) Nothing in this section shall be deemed to require the Authority or a disciplinary committee to inquire intothe question whether a licensee was properly convicted but the Authority or the disciplinary committee may considerthe record of a case in which such conviction was recorded and such other evidence as may show the nature andgravity of the offence.

(8) Any fine imposed by virtue of subsection (1) and any costs awarded by virtue of that subsection may berecovered as a civil debt.

Section: 31 Appeals L.N. 330 of 1998 21/10/1998

(1) Where-(a) an application for the grant or renewal of a licence is refused under section 24;(b) a condition is attached to a licence pursuant to section 17;(c) a licence is suspended or revoked under section 27; or(d) a power under section 30 is exercised,


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the applicant, the licensee concerned or the former such licensee, as the case may be, may, within the period of 21days beginning on the date of the relevant notice under section 24(2), 27(5) or 30(5) or of the relevant licence, as thecase may be, by a notice in writing addressed to the Secretary, appeal against the refusal, or, as may be appropriate,the attachment, suspension, revocation or exercise.

(2) Where a notice of appeal under this section is given, the Secretary shall cause notice of the appeal to bepublished in the Gazette.

(3) (a) Where a notice of an appeal is published pursuant to subsection (2), any person may within the periodof 21 days beginning on the date of such publication, by a notice in writing addressed and delivered tothe Secretary, request to be heard at the appeal to which the notice so published relates.

(b) Where a notice referred to in paragraph (a) is received by the Secretary, the person by or on whosebehalf it was given shall be entitled to be heard or represented at the appeal to which the notice relates.

Section: 32 Appeal panel and tribunals L.N. 330 of 1998 21/10/1998

(1) For the purpose of hearing appeals under section 31, the Secretary shall appoint a panel of persons ("thepanel") comprising a chairman and 11 other members, none of whom shall be a public officer.

(2) (a) A person who for the time being holds an appointment under subsection (1) shall not be eligible for

membership of the Authority.(b) A person who for the time being is a member of the Authority shall not be eligible for appointmentunder subsection (1).

(3) A person who holds an appointment under subsection (1) may surrender his appointment by letter addressedto the Secretary.

(4) Subject to subsection (3), an appointment under subsection (1) shall remain in force for such period as isspecified in the appointment, being a period of not more than 2 years beginning on the date of the appointment.

(5) Where an appointment under subsection (1) expires, the person concerned shall be eligible forreappointment.

(6) Where a person appeals under section 31, the chairman of the panel shall appoint from the members thereofa tribunal consisting of not less than 3 members to determine the appeal, and 1 of the members so appointed shall alsobe appointed chairman of the tribunal.

(7) Where a person appeals under section 31, the chairman of the panel shall-(a) fix the date, time and place for the hearing of the appeal so as to enable the hearing to commence as

soon as reasonably practicable; and(b) not less than 28 days before the date so fixed, give the parties to the appeal, and any person who is

entitled to be heard or represented at the appeal pursuant to section 31(3)(b), a notice of the date, timeand place so fixed in such form as he may determine.

(8) A tribunal appointed under subsection (6) may, in relation to an appeal under section 31, confirm, vary orreverse any of the decision to which the appeal relates.

(9) The decision of a tribunal appointed under subsection (6) shall be final.(10) The Secretary may make regulations regulating the procedure for appeals under section 31 or otherwise

relating to such proceedings.

Section: 33 Tribunal proceedings, etc. L.N. 330 of 1998 21/10/1998

(1) For the purposes of proceedings conducted by a tribunal under section 32, subject to any regulations undersection 32(10) which are for the time being in force, the tribunal concerned may-

(a) determine its own procedure;(b) receive and consider any material, whether by way of oral evidence, written statements, documents or

other thing, even though such material would not be admissible in civil or criminal proceedings;(c) by notice in the prescribed form, require any person to attend before it to give evidence and produce

documents;(d) administer oaths and affirmations;(e) examine on oath, affirmation or otherwise any person attending before it and require such person to

answer all questions put by or with the consent of the tribunal;(f) award to a witness such expenses as, in its opinion, he has reasonably incurred by reason of hisattendance at the proceedings;


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(g) determine the manner in which the material referred to in paragraph (b) is to be received;(h) adjourn any proceedings;(i) make such order, if any, as it thinks fit with regard to the payment of the whole or part of the costs of

the tribunal, by any 1 or more of the following, namely, the applicant, the licensee concerned or suchformer licensee, the Authority, or any other person who was heard or represented during theproceedings; and

(j) do or cause to be done any other thing which is either necessary or expedient to enable it to perform itsfunctions.

(2) (a) Any party in proceedings mentioned in subsection (1) shall, subject to any order made by the tribunalconcerned under subsection (3), be entitled to be present during the proceedings and may participatetherein either in person or through counsel or a solicitor or, with the consent of the tribunal concerned,through some other person throughout the proceedings.

(b) For the purposes of paragraph (a), where a party in the proceedings mentioned in subsection (1) is acompany, the party shall be regarded as participating in the proceedings in person if it participatesthrough any of its directors.

(3) (a) Subject to paragraphs (b) and (c), the proceedings mentioned in subsection (1) shall be conducted inpublic.

(b) Where the tribunal concerned, after consulting the parties to the appeal, is satisfied that it is desirableto do so, it may by order-(i) direct that the proceedings or a part or parts of the proceedings shall take place in private and

give directions as to the persons who may be present;(ii) give directions prohibiting or restricting the publication or disclosure by any or all of the parties

to the appeal, or by any or all of the persons who may be present, of any evidence given at theproceedings or of any matter contained in any document or thing produced or received inevidence for the purposes of the proceedings.

(c) Without limiting the generality of paragraph (b), the tribunal concerned shall, in determining whetheror not it is desirable to make an order under that paragraph, take into account any views of the partiesto the appeal, including the private interests of and any claim as to privilege by any of those parties.

(d) For the purposes of this subsection, any question in relation to a claim by any party as to privilege shall

be a question of law.(4) Costs awarded by virtue of subsection (1)(i) may be recovered as a civil debt.

Section: 34 Inquiry proceedings L.N. 390 of 1998 01/01/1999

(1) For the purposes of an inquiry under section 29, the Authority or, as the case may be, the disciplinarycommittee conducting the inquiry shall have the following powers-

(a) to take evidence on oath;(b) to summon any person to attend the inquiry to give evidence or produce any document or other thing

which may be relevant to the inquiry and which is in his possession or under his control and toexamine him as a witness; and

(c) to award to a witness such expenses as, in the opinion of the Authority or, as the case may be, the

disciplinary committee, he has reasonably incurred by reason of his attendance.(2) A summons under this section shall be in the prescribed form and shall be signed by-

(a) in the case the inquiry is conducted by the Authority, the Chairman;(b) in case the inquiry is conducted by a disciplinary committee, the chairman of the disciplinary

committee.(3) At any inquiry conducted under section 29-

(a) the complainant, or his counsel or solicitor;(b) the Chief Executive Officer;(c) any other officer of the Authority expressly appointed by it as regards the inquiry; or(d) if the Authority so directs, counsel or a solicitor for the Authority,

shall present the case against the licensee to whom the inquiry relates.(4) (a) Subject to paragraphs (b) and (c), an inquiry under section 29 shall be conducted in public.

(b) Where the Authority or, as the case may be, the disciplinary committee conducting an inquiry undersection 29, after consulting the complainant and the licensee to whom the inquiry relates, is satisfied


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that it is desirable to do so, it may by order-(i) direct that the inquiry or a part or parts of the inquiry shall take place in private and give

directions as to the persons who may be present;(ii) give directions prohibiting or restricting the publication or disclosure by any or all of the persons

who may be present (including the complainant and the licensee to whom the inquiry relates) ofany evidence given at the inquiry or of any matter contained in any document or thing producedor received in evidence for the purposes of the inquiry.

(c) Without limiting the generality of paragraph (b), the Authority or the disciplinary committeeconducting an inquiry under section 29 shall, in determining whether or not it is desirable to make anorder under that paragraph, take into account any views of the complainant and the licensee to whomthe inquiry relates, including the private interests of and any claim as to privilege by any of thosepersons.

(d) For the purposes of this subsection, any question in relation to a claim by any person as to privilegeshall be a question of law.

(5) Section 33(2) shall apply mutatis mutandis to an inquiry conducted under section 29.

Section: 35 Contractual or other liability unaffected by suspension,

etc. of licences

L.N. 330 of 1998 21/10/1998

No contractual or other liability shall be affected in any way by reason only of the suspension, revocation orexpiration of a licence.

Part: V ESTATE AGENTS' DUTIES, LIABILITY ANDADVERTISING

L.N. 190 of 1999 01/11/1999

Section: 36 Information as regards properties, etc. 32 of 2000 09/06/2000

(1) (a) Subject to section 38(3), every licensed estate agent shall, as regards every property (whether situatedin Hong Kong or elsewhere) in relation to which he has entered into an estate agency agreement-(i) if he acts for the vendor, then for so long as he so acts, have in his possession or under his control

information prescribed for the purposes of this paragraph;(ii) be reasonably satisfied as regards the accuracy of information prescribed for the purposes of this

paragraph;(iii) supply to persons who are of a class or description prescribed for the purposes of this paragraph

information so prescribed;(iv) comply with requirements prescribed for the purposes of this paragraph when supplying to others

information which is required by this Ordinance to be supplied to them;(v) inform a client who is a vendor of each offer received as regards the property concerned at any

time prior to that at which the client expressly instructs him not to do so, or that at which underor pursuant to any provision of the estate agency agreement with the client the requirement to doso no longer applies to him, whichever is the earlier;

(vi) disclose to a client full particulars of any pecuniary or other beneficial interest which such agenthas in the property concerned, together with particulars of any benefit, including any commissionor any interest of any kind whatever in such property, whether monetary or otherwise, which willaccrue to such agent should the property be disposed of; and

(vii) if as regards a particular property he acts both for the vendor and for the purchaser-(A) inform both of such clients that he is so acting; and(B) without affecting any of the requirements applicable to him, including those in respect of

the supply of information, under any of the foregoing subparagraphs, provide to either ofsuch clients at the request of that client any information provided by the other client asregards the property concerned, unless he has been expressly instructed by that other client

not to do so.(b) For the purposes of this subsection the fact that a licensed estate agent or a partnership carries on anestate agency business and 1 or more other businesses is immaterial.


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(2) Without affecting the generality of subsection (1), information prescribed for the purposes of subsection(1)(a) in relation to any property situated in Hong Kong, being property in relation to which a particular licensed estateagent has entered into an estate agency agreement, or in relation to any property which is of a prescribed class ordescription of such properties, may include the following- (Amended 32 of 2000 s. 48)

(a) particulars of current ownership and subsisting encumbrances in respect of the relevant property, asrecorded in records or other documents which are of a class or description prescribed for the purposesof this paragraph and extracted in a manner prescribed for the purposes of this paragraph;

(b) the total or entire area, calculated and expressed in a manner prescribed for the purposes of thisparagraph, which the relevant property comprises;

(c) where applicable, the year or period in which construction of the relevant property was completed, asrecorded in an occupation permit or in a document which is of a class or description prescribed for thepurposes of this paragraph;

(d) any restrictions on the user of the relevant property which are imposed by any document which is of aclass or description prescribed for the purposes of this paragraph;

(e) the unexpired term of the relevant Government or other lease together with a statement as to whetherthere is any right of renewal of such Government or other lease; (Amended 29 of 1998 s. 105)

(f) if a lease of the relevant property is to be granted, the term of the proposed lease; and (Amended 32 of

2000 s. 48)(g) a statement, made by the vendor in a manner prescribed for the purposes of this paragraph, containing-(i) any information so prescribed and within the vendor's knowledge, being information of a kind so

prescribed and relating to structural additions to or alterations of a building or other structure,whether already carried out or not; and

(ii) any information so prescribed and within the vendor's knowledge, being information relating tothe following repairs or improvements-(A) repairs or improvements which are required or proposed as regards the relevant premises

and. in case such premises form part of a building, as regards any other part of thatbuilding, or as regards any part of the site on which such premises are situated; and

(B) repairs or improvements for the cost of which a purchaser of such premises will be whollyor partly liable.

(3) Subject to section 38(3), where a licensee who is not a licensed estate agent to which subsection (1) appliesbut who in the course of his employment or appointment as a salesperson by an estate agent does estate agency workin relation to a particular property, the following provisions shall apply-

(a) in so far as he does such work, the obligations imposed by subparagraphs (v), (vi) and (vii) ofsubsection (1)(a) are hereby imposed on him;

(b) if as regards the particular property he fails to discharge an obligation imposed on him by paragraph(a) and because of any such failure the relevant vendor or purchaser suffers loss or damage, the failureshall constitute a cause of action described in subsection (4).

(4) Where as regards a particular property a licensed estate agent fails to comply with a requirement ofsubsection (1) which applies to him and because of any such failure the relevant client suffers loss or damage, thefailure shall constitute a cause of action whereby damages or any other relief or remedy may be recovered or obtainedin legal proceedings.

(5) (a) In any legal proceedings to which this subsection applies it shall be presumed until the contrary isproved that the licensed estate agent (or a person who was formerly a licensed estate agent) concernedwas, or should reasonably have been, aware of any particulars or other information which undersubsection (1)(a)(iii) is required to be supplied and which is relevant to the proceedings.

(b) (i) In any proceedings to which this subsection applies, it shall be a defence for a defendant to showthat he had taken all reasonable steps and exercised all due diligence to avoid the failure to whichthe proceedings relate.

(ii) Without limiting the generality of subparagraph (i), in the case of failure to comply with arequirement under subsection (1)(a)(ii) in respect of any information, the defendant shall, for thepurposes of that subparagraph, be regarded as having shown that he had taken all reasonablesteps and exercised all due diligence to avoid the failure, if he shows that-(A) he relied on information obtained from a source prescribed for the purposes of this

subparagraph in respect of such information;(B) it was reasonable for him to have relied on such information; and


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(C) he had taken all steps reasonably open to him to avoid the failure.(c) Neither subsection (3)(b) nor subsection (4) shall be regarded as limiting or otherwise affecting any

right or other cause of action, existing apart from those subsections (or either of them), wherebydamages or any other relief or remedy may be recovered or obtained in legal proceedings.

(d) This subsection applies to any legal proceedings which-(i) are instituted against a licensee (or a person who was formerly a licensee); and(ii) are so instituted wholly or partly by virtue of subsection (4).

(6) Section 46(5) shall apply to subsection (1)(a)(vi), and also to that subsection as applied by subsection (3), asit applies to section 46(3).

(7) Without limiting or diminishing any liability which a licensed estate agent or a vendor may incur under thegeneral law, it is hereby declared that nothing in this section shall be construed as requiring a licensed estate agent or avendor to warrant the accuracy of any statement made pursuant to the requirements of regulations made by virtue ofsubsection (2)(g).

Section: 37 Accounts regulations 23 of 2004 08/09/2004

Remarks:

This section shall come into operation on 1 November 1999 only for the purposes of its application to and in relationto any property in Hong Kong used wholly or primarily for human habitation.

(1) The Authority may, with the approval of the Secretary, make regulations-(a) as to the opening and keeping by licensed estate agents to whom the regulations apply of accounts at

banks for moneys received or held for or on account of their clients;(b) as to the keeping by such licensed estate agents of accounts containing particulars and information as

to moneys received or held or paid by them for or on account of their clients;(c) enforcing compliance with the regulations;(d) empowering the Authority to take such action as may be appropriate to enable it to ascertain whether

or not the regulations are being complied with (Including provisions requiring the production by anysuch licensed estate agent of accounts, records or other documents in his possession or under his

control and their inspection and examination by an officer of the Authority.(2) The provisions contained in regulations made under this section for ascertaining whether the regulations

have been complied with may include, in particular, provisions requiring licensed est

Documents

Estate Agent Ordinance Cap 511