Code of Ethics, Practice Regulation and Practice Circulars

The EAA's Code of Ethics, the conduct rules in the Practice Regulation from first contact to commission, and the Practice Circulars the exam quotes, including the EAQE-only duties of effective control of offices and compliance by partnerships. Syllabus 2.4 to 2.6 is at Level 4, so expect scenarios in which you judge whether a licensee, or the agency supervising him, is in breach.

Part I · Stand-alone questions9 min read8 sections

Checked against the EAA Code of Ethics, Preamble paras 1–2 and paras 3.1.1–3.7.3, eaa.org.hk; Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation (Cap. 511C), ss.5–16; Estate Agents Ordinance (Cap. 511), ss.30 and 38; EAA Practice Circulars Nos. 07-01, 13-03, 13-04, 13-05, 13-06, 15-01, 15-04, 16-01, 16-03, 18-02, 22-01, 23-01, 23-02, 24-01 and 26-01 (CR), from the list of circulars in force at eaa.org.hk; EAA, A Study Guide to Estate Agency Law and Practice, Part 2, paras 80–104; checked 11 Oct 2026.

Must-know for the exam

Breaching the Code may show a licensee is not fit and proper, leading to discipline, suspension or revocation (Code Preamble, para 2).
Code 3.6.1: avoid appointments involving property in which you have a beneficial interest. This goes further than the common law, which requires only disclosure.
Practice Regulation s.5: before a person becomes your client, or before you do estate agency work for him, say you are licensed and give your licence number.
s.8: keep listing records and estate agency agreements at least 3 years; get the vendor's prior written consent before passing details to a sub-listing agent.
s.11: no fictitious offers; record all offers in writing; present them promptly, in order and objectively until an agreement is signed. Then stop marketing (s.13).
s.12: immediate written receipt; client money in a trust account at an authorised institution; check vendor identity and authority before releasing a deposit.
s.15 and Circular 15-01 (CR), effective 1 Sep 2015: effective control needs a system with resources, training, actual monitoring and sanctions.
s.16: in a partnership, one partner's compliance with EAO ss.38, 40(2)–(3), 47 and 48 counts for all partners.
Circular 18-02 (CR), effective 1 Dec 2018: vendor's prior written consent; each advertisement shows a unique Property Number and the Advertisement Date.
Circular 24-01 (CR), effective 1 Nov 2024: each firm sets commission independently; no 'customary' rates; written commission policy and pre-agreement letter encouraged.

On this page · 8 sections

Traps that cost marks

Thinking a signed manual is enough without actual monitoring and sanctions.
Forgetting to give the licence number at first contact.
Letting each branch number the same property differently.
Using 'bait' prices to generate enquiries.
Leaving sold listings up, or assuming the sub-listing agent's adverts are someone else's problem.
Leaving the inventory of included items until after the provisional agreement.
Treating invented offers or selective comparables as harmless sales talk.
Encouraging gazumping by passing on offers after a binding agreement.

Why this matters in the exam

Three layers of rules govern daily practice. The Code of Ethics sets standards of conduct; breach can make a licensee unfit to hold a licence. The Practice Regulation (Cap. 511C) sets enforceable duties for residential property, from the first conversation to the commission receipt. Practice Circulars explain how the EAA expects the law to be applied; non-compliance is a ground for discipline.

The EAQE adds a fourth layer: you are expected to supervise others. Questions often describe a salesperson's breach and ask whether the branch manager, a director or the agency is also liable. The answer depends on whether the agency had a real system under Practice Regulation s.15.

The Code of Ethics: seven heads

Para	Rule	Typical breach
3.1.1	Refrain from activities that may infringe the law	Arranging an illegal HOS alienation; intercepting cars at a first-sale site
3.2.1–3.2.2	Know the EAO, its regulations, the Code and EAA guidelines; keep up with laws and the market	Having a client sign a provisional agreement with blanks; not warning of a village house alienation restriction
3.3.1	Serve clients with honesty, fidelity and integrity; protect them from fraud and misrepresentation	Telling a buyer a bank will lend without proof of income; lying to a landlord about a tenant's family

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Estate Agents Qualifying Examination