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?
Answer: Section 45 does not apply. Part VI of the Ordinance (sections 45 to 48) came into operation only for property in Hong Kong used wholly or primarily for human habitation, so an oral agreement about a shop can be sued on if its terms are proved. Why not the others: - Barred for want of a prescribed agreement: the prescribed forms and section 45 apply to residential property only. - An EAA form for shops: there is no prescribed estate agency agreement for non-residential property. - Only through section 49: a referral to the EAA needs the agreement of both parties and compliance with section 45; it is not the only route, and section 45 is not engaged here. Rule: The 'no prescribed agreement, no claim' rule is limited to residential property; for shops, offices and industrial units, ordinary contract law decides whether commission is recoverable. Source: Estate Agents Ordinance (Cap. 511), Part VI editorial note (L.N. 190 of 1999) and s.45, as at Oct 2026
Applying the Form 3 requirement to non-residential property.
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