SQE Estate agency agreements and prescribed forms question: Lotus Property Company's Form

EAA SQEEstate agency agreements and prescribed forms

Lotus Property Company's Form 3 with Mr Yip marks the agency relationship as 'potentially dual agency'. A month later, Priya Shah signs a Form 4 with the same agency covering Mr Yip's flat, agreeing to pay the agency 1% commission. What must the agency now do for Mr Yip?

A Nothing more, because marking potentially dual agency in Form 3 has already disclosed the position to him
B As soon as practicable, disclose in writing the dual agency and the commission it will receive from Ms Shah
C Obtain Mr Yip's written consent first, or Ms Shah's Form 4 becomes void as regards Mr Yip's own flat
D Tell Mr Yip orally of the dual agency before he signs any agreement for sale and purchase

Show the answer and explanation

Answer: B. As soon as practicable, disclose in writing the dual agency and the commission it will receive from Ms Shah

Answer: Disclose in writing, as soon as practicable, the dual agency and the commission from Ms Shah. Under clause 2(c) of Form 3, once dual agency arises from a potentially dual agency, the agent must disclose in writing the relationship and the amount or rate of commission it will receive from the purchaser. Why not the others: - Nothing more: 'potentially dual' only warns that dual agency may arise; the disclosure duty starts when it does. - Written consent or the Form 4 is void: Form 3 requires disclosure, not consent, and provides no voiding effect. - Orally: the disclosure must be in writing. Rule: Dual agency = disclose the other side's commission in writing as soon as practicable; potentially dual = do the same as soon as practicable after dual agency arises. Source: Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation (Cap. 511C), Schedule, Form 3, clause 2(b)-(c); Estate Agents Ordinance (Cap. 511), s.36(1)(a)(vii); as at Oct 2026

Common mistake

Believing the 'potentially dual agency' tick is enough once a purchaser actually signs up.

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Related SQE questions

Mr Chow signs a Form 4 with Lotus Property Company listing three flats in Schedule 1, with purchaser's commission of 1% of the price and a validity period from 2 Nov 2026 to 31 Jan 2027. In December 2026, Mr Chow's wife buys one of the listed flats directly from its owner for HK$7,600,000, without using any agent. How much commission is Mr Chow liable to pay Lotus Property under the Form 4?Peak Commercial Agency orally agreed with Mr Wong to find a buyer for his ground-floor shop in Mong Kok for 1% commission. Nothing was signed. The agency introduced the buyer and the sale completed, but Mr Wong refuses to pay. Which statement best describes the position?Form 1 lists prescribed sources for the information in Part B of Part 1. Which statements are correct?

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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.