Grace Wong is a director, not an employee, of Lotus Realty Limited, a licensed estate agent company. She personally negotiates flat sales for the company’s clients and receives director’s fees rather than a salary. Which statement is correct?
Answer: she needs a licence. A “salesperson” is an individual who does estate agency work in the course of his employment by, or as a director of, an estate agent. In addition, each director of a licensed company who is engaged in its business as an estate agent must hold an estate agent’s licence. Why not the others: - Employment only: the definition expressly includes directors. - Covered by the company licence: a company licence does not license individuals; section 20(1)(a) requires engaged directors to be licensed estate agents. - No personal commission: licensing turns on doing estate agency work, not on how the individual is paid. Rule: individuals doing estate agency work for a licensed company, whether as employees or directors, must hold their own licence. Source: Estate Agents Ordinance (Cap. 511), s.2(1) (definition of salesperson) and s.20(1)(a); EAA, A Study Guide to Estate Agency Law and Practice, Part 2, paras 17–19; as at Oct 2026
Candidates think directors fall outside the licensing net because they are not employees.
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