Salesperson Henry Mak tells a purchaser that a flat in Kwun Tong has a saleable area of 520 square feet and was built in 2008. He copied both figures from an old advertisement and did not check them. The flat is in fact 468 square feet and was built in 1996. Which statement is correct?
Answer: He failed to exercise due care and due diligence. Why not the others: - Protected by relying on an old advertisement: Copying unchecked figures is the opposite of due diligence; official sources such as the occupation permit, the Rating and Valuation Department and the land search were available. - Only after a provisional agreement: The duty applies when the information is given, whether or not a deal follows. - Paragraph 3.7.1: That paragraph is about unfair advantage over, and disparagement of, other agencies, not inaccurate particulars. Rule: Licensees shall exercise due care and due diligence. Age and saleable area are usually of great concern to a purchaser, so getting them wrong is a typical breach. Source: EAA Code of Ethics, paragraph 3.5.1; Practice Regulation (Cap. 511C), Form 1 Part 1; as at Oct 2026
Thinking that repeating someone else's advertised figures shifts responsibility away from the salesperson.
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