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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying ExaminationFiona Lee, a salesperson, is one of many agents engaged by a developer to sell flats at a new development, Ocean Crest, in Tseung Kwan O. Mr Ho, a walk-in buyer who saw the developer’s advertisements, asks for her help. Which statement best describes Fiona’s usual position?
Answer: she usually acts for the developer only, and the first-hand sales law also binds her. In most first-hand sales the licensee acts for the developer; some provisions of the Residential Properties (First-hand Sales) Ordinance (Cap. 621) apply to persons other than the vendor, including estate agents. Why not the others: - Acts for Mr Ho only: the developer engaged her; the solicitors handle the legal documents, not the marketing. - Ordinance binds the developer but not her: Cap. 621 also applies to estate agents, in particular on promotional activities and property information. - Negotiates the price list and terms: there is little or no room to negotiate in a first-hand sale, and the sale terms are usually fixed. If she did act for both parties, she would owe Mr Ho the full services of an estate agent as in the secondary market. Rule: in first-hand sales the agent usually acts for the developer only, and must comply with Cap. 621 as well as the EAO, its subsidiary legislation and EAA guidelines. Source: EAA, A Study Guide to Estate Agency Law and Practice, Part 1, paras 26–27; Residential Properties (First-hand Sales) Ordinance (Cap. 621); as at Oct 2026
Candidates think the first-hand sales law binds only developers; many of its provisions bind estate agents too.
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