The director of an agency owns 20% of the shares in the company that is selling a flat through the agency. Where and when must this be disclosed to the purchaser client under Form 4?
Answer: In the 'Interests in Property' schedule, or in writing as soon as practicable if it arises later. Why not the others: - Only if asked: Disclosure is mandatory, not on request. - After completion: Too late to protect the client. - Only to the EAA: The duty is to the client. Rule: An agent must disclose any pecuniary or other beneficial interest in the property in the agreement's interests schedule, and disclose any interest arising later in writing as soon as practicable. Form 4 clause 5 covers interests of the Agent's directors, and note (7) says being a member of a company that has an interest in the property counts, whatever the size of the holding (the 10% test in note (6) only defines a substantial shareholder of the Agent). Source: Practice Regulation (Cap. 511C), Form 4, clause 5, Schedule 4 and Schedule 5 notes (6) and (7); Estate Agents Ordinance (Cap. 511), sections 36 and 46(5); as at Oct 2026
Thinking an interest held through a company need not be disclosed.
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