EAQE Estate agency agreements and prescribed forms question: developer's own agency contract

EAA EAQEEstate agency agreements and prescribed forms

An agency is appointed by a developer for the first sale of flats in a new development, using the developer's own agency contract rather than a prescribed form. Which term must that contract contain under section 7 of the Practice Regulation?

A A fixed commission rate of 2% of the price
B A validity period of not more than 3 months
C A statement whether the agent may also act for purchasers
D The EAA's approval of the developer's sales brochure

Show the answer and explanation

Answer: C. A statement whether the agent may also act for purchasers

Answer: Whether the agent may also act for purchasers. Why not the others: - A fixed 2% commission: Commission is negotiated; no rate is prescribed. - A 3-month validity period: That is a recommendation printed in Forms 4 and 6, not a section 7 requirement. - EAA approval of the brochure: The EAA does not approve sales brochures. Rule: A non-prescribed agreement with the vendor in a first sale of undivided shares must state that the agent will obtain Form 1 Part 1 information, that the vendor will supply Part 2 information (unless the unit is uncompleted), whether the agent may also act for the purchaser, and that the agent will disclose any interest in writing. Source: Practice Regulation (Cap. 511C), section 7; as at Oct 2026