EAA Code of Ethics Explained for Agents
Checked against official sources: 11 Oct 2026. Rules, fees and dates change, so confirm anything time-sensitive on eaa.org.hk.
The EAA Code of Ethics is short: eleven paragraphs under seven headings. It is syllabus item 2.4 in both the SQE and the EAQE, and examiners like it because each paragraph can be tested with a scenario. You are told what a salesperson did and asked which paragraph it breaches, or whether it breaches any. This guide takes each paragraph in turn with an everyday example, then explains what happens to a licensee who breaches it.
Source: EAA, Code of Ethics page (dated 1 February 2007; it states that the Code is the same version as the one issued on 1 January 2002), checked 11 October 2026; and EAA, A Study Guide to Estate Agency Law and Practice, Part 2, paras 80–93.
Why the Code has teeth
The Code is guidance, not a statute, so breaching it is not a criminal offence by itself. But the preamble (para 2) warns that a licensee who fails to comply may no longer be a fit and proper person to hold a licence under the Estate Agents Ordinance (Cap. 511), and may face disciplinary action. Being fit and proper is a licensing requirement, so a serious breach can end a career.
The Code at a glance
| Para | Heading | In one line |
|---|---|---|
| 3.1.1 | Compliance with the law | Do not do anything in your practice that may break the law |
| 3.2.1 | Understanding legislation and requirements | Know and follow the Ordinance, its regulations, the Code and EAA guidelines, including Practice Circulars |
| 3.2.2 | (same) | Keep up with laws, regulations and market developments so your advice is responsible |
| 3.3.1 | Professional knowledge and competence | Serve clients with honesty, fidelity and integrity; protect them against fraud, misrepresentation and unethical practices |
| 3.4.1 | Ethical standards and responsibilities to clients | Protect and promote clients’ interests, follow their instructions under the agreement, and be impartial and just to all parties |
| 3.5.1 | Due diligence | Exercise due care and due diligence |
| 3.6.1 | Minimising conflicts of interest | Avoid appointments involving property in which you have a beneficial interest |
| 3.6.2 | (same) | Disclose possible or potential conflicts, such as acting for both sides, and fully disclose any interest in the property to all parties |
| 3.7.1 | Relations between agents | No unfair advantage over, damage to the reputation of, or public disparagement of other agencies |
| 3.7.2 | (same) | Avoid practices that bring the trade into discredit or disrepute |
| 3.7.3 | (same) | Follow fair competition; no restrictive business practices |
Each paragraph with an example
3.1.1 Compliance with the law
A Home Ownership Scheme flat with unpaid premium is subject to alienation restrictions under the Housing Ordinance (Cap. 283). A salesperson who helps the owner “sell” it in breach of those restrictions risks aiding an offence, and breaches 3.1.1. So does a salesperson who runs into traffic to stop cars near a new development.
3.2.1 and 3.2.2 Knowing the rules
Asking a buyer to sign a provisional agreement with the price or completion date left blank, to be filled in later, goes against Practice Circulars No. 03-02 (CR) and 13-06 (CR), so it breaches 3.2.1. Failing to warn a buyer that a New Territories village house cannot be sold within a restricted period under its Government grant falls under 3.2.2.
3.3.1 Honesty, fidelity and integrity
Telling a self-employed buyer with no proof of income that “any bank will lend you 70%” to rush a decision is a false mortgage assurance. Telling a landlord the tenant is a couple when you know it is a family of five, because the landlord wanted a small household, is lying to your own client. Both breach 3.3.1.
3.4.1 Protecting the client and following instructions
A vendor tells you not to sell to a confirmor (a buyer who will resell before completion). You introduce a known speculator and prepare a provisional agreement that allows sub-sale. That fails to carry out the client’s instructions. Drafting a business-transfer agreement for a shop and its tenancy yourself, instead of telling the parties to get legal advice, also fails to protect the client.
3.5.1 Due care and due diligence
The vendor bought at HK$9,000,000 three years ago, the mortgage is not released, and the agreed price is HK$7,200,000. The flat may be in negative equity: the sale price may not cover the loan. A careful agent warns the buyer of the risk that the vendor cannot complete and suggests deposits be held by solicitors as stakeholders. Giving the wrong building age or saleable area is also a due diligence failure.
3.6.1 and 3.6.2 Conflicts and dual agency
Paragraph 3.6.1 goes further than the common law. At common law an agent may sell its own property to a client if it discloses the interest. The Code says to avoid such appointments altogether. Where a conflict cannot be avoided, 3.6.2 requires disclosure: state single, dual or potentially dual agency in Forms 3 to 6, and disclose any pecuniary or beneficial interest to all parties. See estate agency agreement forms.
3.7.1 to 3.7.3 Relations with other agents
- Telling a vendor that the agency holding their exclusive listing is “known for cheating buyers”, to win the deal, breaches 3.7.1.
- Pushing and shouting at a rival agency’s staff outside a show flat brings the trade into disrepute: 3.7.2.
- Under a non-exclusive agency, keeping the vendor’s Home Ownership Scheme “Certificate of Availability for Sale” so no other agent can sell the flat is a restrictive practice: 3.7.3.
The trap
What happens after a breach
Complaints are investigated by the EAA (Cap. 511, sections 28 and 29). If the EAA or its disciplinary committee finds against a licensee, for example for breaching the Ordinance or for no longer being fit and proper, section 30 lets it:
- admonish or reprimand the licensee;
- attach or vary conditions on the licence;
- suspend the licence for up to 2 years, or revoke it;
- impose a fine of up to HK$300,000;
- order the licensee to pay costs.
Decisions can be published. A licensee can appeal by written notice within 21 days. Appeals are heard by a tribunal of at least 3 members drawn from an appeal panel, and its decision is final (Cap. 511, ss.30–33; EAA Study Guide, Part 2, paras 69–72).
Practice scenario (fictional)
Carmen, a salesperson, co-owns a flat with her sister. Her agency is instructed to sell it, and Carmen offers to handle the sale herself. She marks the agency as single agency and does not mention to buyers that she is one of the owners.
Analysis: Carmen has a beneficial interest in the property, so 3.6.1 says she should avoid the appointment. If her agency still acts, the interest must be disclosed fully to all parties (3.6.2) and set out in the interests schedule of the estate agency agreement (Form 3, clause 9). Keeping quiet breaches the Code and the agreement, and buyers could complain to the EAA.
Takeaway
Practise ethics scenarios in SQE practice and EAQE practice. Sources: EAA Code of Ethics and Cap. 511, section 30.
Frequently asked questions
What does the EAA Code of Ethics cover?
Seven areas: compliance with the law, knowledge of the rules, honesty and competence, duties to clients, due diligence, conflicts of interest, and relations between agents.
Is breaching the Code of Ethics a criminal offence?
Not in itself. But the EAA may find the licensee no longer fit and proper and take disciplinary action, up to suspension or revocation of the licence.
What penalties can the EAA impose?
Under section 30 of the Estate Agents Ordinance: reprimand, licence conditions, suspension for up to 2 years, revocation, a fine of up to HK$300,000, and costs.
Study notes for this guide
Put it into practice
Exam-style questions for the EAA SQE and EAQE, with worked explanations and timed mocks in the real Part I and Part II format.
Build a daily practice habit : a few exam-style questions a day, with worked answers. Free to start.
Start practising →Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator. This guide is general information for exam preparation, not legal advice.