SQE Practice Regulation and Practice Circulars question: Salesperson Danny Ma puts up a poster on the shutter of a vacant shop

EAA SQEPractice Regulation and Practice Circulars

Salesperson Danny Ma puts up a poster on the shutter of a vacant shop, with the owner’s written permission, reading ‘For rent – direct to owner’ followed by Danny’s own mobile number. Which statement is correct?

A It is acceptable if the agency holds a sole agency for the shop
B The wording misleads the public, as the number is the agent’s
C It is acceptable because the Practice Regulation covers only flats
D It is acceptable if the agency’s licence number also appears

Show the answer and explanation

Answer: B. The wording misleads the public, as the number is the agent’s

Answer: The wording is misleading because the number advertised is that of the owner’s agent, not the owner. Why not the others: - Sole agency makes it acceptable: Holding a sole agency does not make the agent the owner. - The Practice Regulation covers only flats: Circular 09-04 (CR) was issued about non-residential shop advertisements; the EAA’s guidance against misleading advertisements applies whatever the property type. - Showing the licence number cures it: The licence number is a separate requirement and does not cure a misleading phrase. Rule: Advertisements must not contain misleading phrases such as ‘direct to owner’ when the phone number advertised is that of the owner’s estate agent. Posters on private land also need the owner’s or occupier’s written permission. Source: EAA Practice Circular No. 09-04 (CR); as at Oct 2026

Common mistake

Thinking a misleading phrase is acceptable for a shop because the Practice Regulation is residential-only.

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Related SQE questions

Salesperson Tiffany Choi recommends a renovation contractor to her purchaser client, Mr Lai. The contractor pays Tiffany’s agency HK$3,000 for every client referred. Under the Practice Regulation, what must Tiffany do?Kowloon Global Property Limited prints a poster of 1.2 square metres, which is larger than A4, to promote an uncompleted development in Osaka. Under Circular 23-02 (CR), how must the company licence or SPOB number and the Caution Statement be displayed?Mandy Ng of Peak View Agency knows that Mr Tsang’s flat is subject to an exclusive (sole agency) Form 3 with Harbour Realty Limited, valid until 30 November 2026. She would like Mr Tsang to list the flat with Peak View as well. Under the Practice Regulation, which statement is 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.