Case studies: running an agency

Agency-management cases put you in the office of a director or branch manager: a salesperson has misbehaved, a client has complained, data has leaked, a suspicious buyer has appeared or commission is unpaid. The questions ask who is liable, under which rule, what the firm must do next and by when. This guide gives a three-layer liability method, a deadline table and the commission-dispute procedure.

Part II · Land search & case studies6 min read7 sections

Checked against the EAA Examination Handbook (paper-based), August 2026, paras 4.3 and 4.4; Estate Agents Ordinance (Cap. 511), sections 28 to 33, 36, 38 to 43, 49 and 55; Practice Regulation (Cap. 511C), sections 12, 15 and 16; Estate Agents (Determination of Commission Disputes) Regulation (Cap. 511D); Estate Agents (Registration of Determination and Appeal) Regulation (Cap. 511E); EAA Practice Circulars Nos. 07-01, 08-04, 13-05, 15-01 and 23-01 (CR); Personal Data (Privacy) Ordinance (Cap. 486), sections 19, 23, 35E, 64 and 65; Prevention of Bribery Ordinance (Cap. 201), section 9; Companies Ordinance (Cap. 622); EAA, A Study Guide to Estate Agency Law and Practice, Parts 2 and 8; checked 11 Oct 2026.

Must-know for the exam

EAQE Part II: 20 questions on one or two case studies, 40 marks; you need at least 24, plus 36 of 60 in Part I, in one sitting.
Three layers for every wrong: civil liability to the client (staff member and, vicariously, the firm), EAA discipline of licensees, and criminal offences.
EAA disciplinary powers (EAO s.30): reprimand, licence conditions, suspension up to 2 years, revocation, fine up to HK$300,000. Appeal within 21 days.
Section 15 of the Practice Regulation reaches every licensed estate agent responsible for supervision, including branch managers and area supervisors (Circular 15-01 (CR)).
A salesperson must pay client money forthwith to the employer or its trust account (EAO s.43); failure is an offence (s.55(2)).
An agent who accepts an advantage without the principal's permission commits an offence under POBO s.9: up to HK$500,000 and 7 years (Circular 07-01 (CR)).
Deadlines: EAA notices 31 days (s.40); Registrar of Companies 15 days for a director change; PDPO access and correction 40 days; written confirmation of oral marketing consent 14 days.
Commission disputes: joint referral; EAA may decline over HK$300,000; filing fee HK$500 each; determination fee 10%, minimum HK$2,000; appeal to the District Court within 14 days.
Suspicion of money laundering goes to the MLRO and, if warranted, the JFIU; warning the client can be tipping off (Circular 23-01 (CR)).

On this page · 7 sections

Traps that cost marks

Thinking a licensed director can cover several shops by splitting his time between them.
Assuming long experience on a salesperson's licence is enough to manage a shop.
Counting the 31 days from the day after the event instead of from the event date itself.
Believing that a passed examination lets a recruit work while the licence is pending.
Thinking a new business name needs a new licence, or that a business name and phone number are enough on a poster.
Treating the agency's office account, or the signed provisional agreement, as good enough for a client's deposit.
Holding a rejected offeror's cheque in case the main deal fails.
Treating a note from the vendor's side as authority to release stakeholder money early.

Why this matters in the exam

Agency management (syllabus Part 8) and the effective-control parts of Part 2 are what separate the EAQE from the SQE, and both are tested at Level 4. A Part II case built on them can carry many of the 20 questions, because one story raises civil, regulatory and criminal points for several people at once.

The common mistake is to stop at the salesperson. Examiners usually want to know about the branch manager, the director and the company as well.

A three-layer method

For each wrongful act in the case, list the people involved (salesperson, branch manager, area supervisor, director, company, outside contractor), then ask three questions.

Layer	Ask	Typical answer
Civil	Can the client recover loss, and from whom?	The salesperson personally; the company vicariously if in the course of employment; PDPO s.65 makes staff acts the employer's unless it took practicable steps to prevent them
Regulatory	Which licensee breached which duty?	Salesperson: Practice Regulation or Code of Ethics. Manager and supervisors: s.15. Company: s.38 (one licensed manager per office), s.39, s.40 notices
Criminal	Is it an offence?	EAO s.55 (unlicensed work, client money); PDPO s.64 (data sold for gain); POBO s.9 (secret commissions); AMLO tipping off

Sources: EAO; Cap. 511C; Cap. 486; Cap. 201; Circulars 15-01 and 23-01 (CR); as at Oct 2026

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