SQE Statutory duties, discipline and offences question: Estate Agents Ordinance

EAA SQEStatutory duties, discipline and offences

Ken Lau, a salesperson with Kowloon Homes Agency, acts for a purchaser client, Ms Ng Siu-fong, who is looking for a two-bedroom flat in Kwun Tong. One of the flats Ken proposes to show her is owned jointly by Ken and his brother. What must Ken do under the Estate Agents Ordinance?

A Nothing beyond normal duties, because the duty to disclose an interest is owed only to vendor clients
B Disclose to Ms Ng full particulars of his interest in the flat and of any benefit he will gain on its sale
C Disclose his interest only if he owns more than half of the flat, since a minority share is not an interest
D Nothing beyond normal duties, provided the agency rather than Ken himself will receive any commission

Show the answer and explanation

Answer: B. Disclose to Ms Ng full particulars of his interest in the flat and of any benefit he will gain on its sale

Answer: Ken must disclose full particulars of his interest and of any benefit that will accrue to him if the flat is sold. Why not the others: - Duty owed only to vendors: the duty is owed to "a client", which includes a purchaser client. - More than half: any pecuniary or other beneficial interest must be disclosed; there is no ownership threshold. - Commission paid to the agency: the duty covers Ken's own interest in the flat, whoever receives the commission. Rule: An estate agent, and a salesperson doing the work, must disclose to the client full particulars of any pecuniary or other beneficial interest in the property and of any benefit that will accrue on its disposal. Source: Estate Agents Ordinance (Cap. 511), sections 36(1)(a)(vi) and 36(3); as at Oct 2026

Common mistake

Candidates think disclosure of interest is owed only to the vendor, but it is owed to whichever client the licensee acts for.

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Related SQE questions

Mr Ho Kwok-wai complained about salesperson Ricky Fung, whose licence was then suspended. Ricky has appealed and notice of the appeal has been published in the Gazette. Mr Ho wants to be heard at the appeal. What does the Estate Agents Ordinance provide?Simon Yip, a licensed salesperson, stops doing estate agency work on Monday 10 August 2026 to take up a job at a bank. He is not joining another agency. By what date must he notify the Estate Agents Authority, and on which form?On Wednesday 4 November 2026 a disciplinary committee decides to suspend the licence of salesperson Alan Choi for three months. By what date must the Estate Agents Authority notify Alan in writing of the decision, and what must the notice contain?

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An original question written to the published SQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.