!"# A Selection of Disciplinary Cases. !"#$%&'=lîéêäççâáåö=äáåéåëáåö=êéèìáêéãéåíë=ã~ó=äé~ç=íç=ééå~äíó

Transcription

1 55!"# A Selection of Disciplinary Cases!"#$%&'=lîÉêäççâáåÖ=äáÅÉåëáåÖ=êÉèìáêÉãÉåíë=ã~ó=äÉ~Ç=íç=éÉå~äíó The Authority conducted regular visits to estate agency establishments to ensure due compliance of the licensing and practice requirements. In one of such visits to a company s registered office at Premises A in Chai Wan, it was revealed that the place was a vacant factory unit. Later, officers of the Authority visited this company at Premises B on Bonham Road. Officers were received by a licensed employee who was only able to produce a copy of the Statement of Particulars of Business ( SPOB ) issued for Premises A. According to the employee, the shop had been opened for 6 months and it was a branch of the main office which was located on Seymour Road.!"#$%&'()*+,-!"#$%&'()*+,-)!!"#$%#&'()*+,-!"#$%&!"#$%!"#$%&'() S!!"#$%!"#$%&'()*+,!"#$%&'!"!"#$%&'()*+,- /!!"#$%&!"!"#$ S!"#$%!"#!"#$%& On the same day, officers visited the company s main office at Premises C on Seymour Road and spoke to the sole proprietor of the company. He produced the SPOB for Premises A and admitted that his business which used to be at Premises A had been relocated to Premises C for two years and he did not amend the address in the SPOB. He also admitted that he had opened a branch at Premises B for six months but did not apply for a SPOB for that branch.!"#$%&!!"!"!"#$%&!!"!"#$%&'()!"#$%&'()*+,-'!"#$%&!" #$%!" APIMMM!"#$ On the next day, the proprietor applied for amendment of the SPOB address (from Premises A to Premises C) and also applied for a new SPOB for the branch at Premises B. He later wrote to the Authority saying that he deeply regretted having committed the breaches of the licensing regulations out of oversight and heavy workload. The Disciplinary Committee considered the case and found that the proprietor had indeed operated both Premises B and C in breach of the licensing regulations in respect of SPOB and decided to impose a fine of $3,000 for each of the breaches and also to send him a reprimand.

2 56!"# A Selection of Disciplinary Cases!"=EF= NM ENF!"#$%& '()*+!"#$%&'()*+!"#$%&'()*+,!"#$%&'()*+,!"#$%&'()* Section 10 of the Estate Agents (Licensing) Regulation (1) A licensed estate agent shall, before carrying on estate agency business at any place under a particular business name, apply to the Authority for the grant of a statement of particulars of business for that place and name and shall pay to the Authority the relevant portion of the licence fee in respect of such business. EOF!=ENF=!"#$%&'!"#$%&'()*+,!"#$=E!"#$%!"#$%&'()*+,!"#$%&'()*F=!"#$% (2) The Authority may, upon an application under subsection (1) and payment of the relevant portion of the licence fee, grant to the licensed estate agent (or, where the business is carried on by two or more licensed estate agents, to any one of them) a statement of particulars of business. EPF!"#$%&'()*+,!"#$%&'()*+,!"#$%&'()*!"#$!%&'()*+!"#$%&'() E~F!"#$%&%'()*+!"#$%& EÄF E!"#$%&'(F!!"#$%&'()*+, E!"#$%&'F (3) A statement of particulars of business may be granted, and may upon application be renewed, for a period for which the portion of the licence fee in respect of the business has been paid and expiring not later than- (a) the expiry of the estate agent s licence of the person by whom the statement is to be held; or (b) in the case of a statement to be held in respect of a partnership, the latest date on which the estate agent s licence of any member of the partnership is to expire. EQF!"#$%&'()*+, E!"#$%&"'()&!"#$%&'()*+F=!"#$%&'()*+,!"#$%&"'()*!"#$%&'$()*%!" (4) A statement of particulars of business shall have effect only in so far as the person named therein (or if two or more persons are so named, at least one of them) is a licensed estate agent and, accordingly, the Authority may require any person in possession of any statement that has ceased to have effect under this subsection to surrender it.

3 A Selection of Disciplinary Cases!"# 57 ERF!"#$%&'()*+,!"#$%&'()*+,!"#$%&'()*!"#$%&'()*%+!"#$%&'()*!+,!"#$%&!"#'() (5) For the avoidance of doubt, the grant or renewal of a statement of particulars of business for any period in respect of a business carried on by two or more persons as members of a partnership shall not entitle any such person to do estate agency work after he ceases to be a licensed estate agent. ESF!"#$=ENF==EPF=!!"#$%&'()*+,!"#$%&'()!*+!"#$%&'()*+,!"#$%&'()*+%!"#$%&'()*+,!"#$%&'($)!"#$ (6) An application by any person under subsection (1) or (3) for the grant or renewal of a statement of particulars of business for a business carried on by him or as a member of a partnership, whether made at the same time as his application for the grant or renewal of a estate agent s licence or thereafter, forms part of the latter application.!"=ef= NQ=ENF=EÇF=!"#$%&'(!"#$!"#$%&'#()*+!"#$%&'()*&+,!"#$%&'()*+ Section 14(1)(d) of the Estate Agents (Licensing) Regulation (Every holder of an estate agent s licence shall) not carry on estate agency business under a business name or at a place of business other than the one specified in a statement of particulars of business granted to him.

4 58!"#=A Selection of Disciplinary Cases!"#$ Nature of gift offered to be clearly indicated!"#$%&'()*+,-!"#$%&'()*+,-!"#$%&'(&)*+,- / /!"#$%&'()*+,- A salesperson persuaded a buyer to buy a first-hand property through her company. When the buyer told her that other companies would offer cash incentives, the salesperson said that her company would not give cash incentives but would provide furniture coupons of the same value. The buyer accepted and signed the agreement to purchase through the salesperson on the same day. / RMM!"#$%&'()*+!"#$%&'()*+, -.!"PIMMM!"#$%&' The buyer later received from the salesperson s company a bundle of furniture coupons, each with a value of $500. He however found that each $500 coupon carried the condition that it would be valid for purchase of HK $3,000 or more. The salesperson explained to the Authority that he had explained to the buyer that he had to spend $3,000 before using each coupon valued at $500. The buyer did not raise any objection because he appreciated her service and efforts, which could not be measured in terms of pecuniary benefits. At the same time, the salesperson admitted that she knew another company was willing to offer the buyer cash incentive equal to 1% of the purchase price.!"#$%&'()*+,-#!"# PIMMM!"#$! RMM!"#$%&'(!"#$% &'()*+,-!"#$%&'()*+,-!"#$%&"#'()*+,!"#$%&' NB!"!!"#$%&$'()*+,-!"#$$%&'("#)*!"#$%&'()*+,$%!"#$%&'()* The Disciplinary Committee considered this case and believed that the buyer was concerned about the genuine value of coupons he could get. He would not have accepted the coupons and bought the property through the salesperson if she had brought the condition to his attention because the genuine value or cash value of the coupons with the condition would be much less. The salesperson s explanation that the buyer did not raise any objection due to the latter s appreciation of her service was hardly convincing. The Disciplinary Committee therefore decided to give the salesperson a warning.

5 A Selection of Disciplinary Cases!"# 59!" PKQKN!"#$%!&'(!)!"#"$% Paragraph of the Code of Ethics Estate agents and salespersons, in engaging and accepting an appointment as an agent, should protect and promote the interests of their clients, carry out the instructions of their clients in accordance with the estate agency agreement and act in an impartial and just manner to all parties involved in the transaction.

6 60!"#=A Selection of Disciplinary Cases!"#$%&'()*+=Fighting in public damages the reputation of the trade!"#$%&' (E!" F!"#$%&'()*+ Two estate agents had their licences suspended by the Disciplinary Committee for fighting in a public place at a first sale site.!"#$%&"#'()*&+!"#$%&'()#*+,-!"#$%&'()*+,!!"#$%& While canvassing for clients at a first sale site, estate agents from two estate agency companies accused each other of client poaching. In the heat of the dispute, Agents A and B punched Agent C on his head and gave a blow to his nose causing bleeding. Agent C reported the case to the Police.!"#$%&'()*+,!"#$%&!"#$!"#$ NIMMM!"#$!" NIMMM Agents A and B were subsequently arrested and charged with assault occasioning actual bodily harm. They were eventually ordered by the court to be bound over for one year in the sum of $1,000 each to keep the peace and to be of good behaviour, and to pay $1,000 each as compensation to Agent C.!"#$%&'()*+,!"#$%&'()*+,!"#$%&'(")* After consideration of the evidence presented by the parties at the inquiry hearing, the Disciplinary Committee found that Agents A and B had been involved in fighting in a public place in the course of carrying out estate agency work. The Disciplinary Committee considered that the behaviour of Agents A and B was improper and injurious to the reputation of the trade. It came to the decision that Agents A and B were not fit and proper persons to hold their licences and that their licences be suspended for a period of time.!"#$% NV ENF!"#$%&'()*+,!"#$%&'()*&'!"#$ E~F!"#$%&'()*+,!"# EÄF!"#$%& EáF!"#$% RS=ENF=EàF=!"#$%&'()*+,!"#$ Section 19 of the Estate Agents Ordinance (1) An individual shall not be eligible to be granted or hold or continue to hold an estate agent s licence unless (a) he has attained the age which is for the time being prescribed for the purposes of this subsection; (b) he satisfies the Authority (i) that he has a good understanding of any regulations made for the time being under section 56 (1) (j) and which apply to a licensed estate agent;

7 A Selection of Disciplinary Cases!"# 61 EááF!"#$%&' RS=ENF=EÇF=!"#$%&'()*+)!"#$ EáááF!"#$%&' RS=ENF=EÖF=!"#$%&'%()=E F EÅF=!"#$%&'#()*+,!"#$%&' (ii) that he has the educational qualifications or experience or both prescribed for the time being under section 56 (1) (d) and which apply to him; and (iii) that he complies with such other requirements (if any) as are prescribed for the time being under section 56 (1) (g) and which apply to him; and (c) the Authority otherwise considers him a fit and proper person to hold an estate agent s licence. EOF=!"#$%&'()*+,-!"#$%&'()*+, E~F!"#$%&'%&()!"#$%&=E!"F!"#$%&'(R!!"#$ %&'()*!"# EÄF!"#$%&'()*!"#$%&'()*+,!"#$%&'()*(+!"#$%&'()*+!"#$ EÅF!"#$%=E NPS F O!"#$%!&'(!" EÇF!"#$=E!"#$% F=!"#$%&'()*!"#$%&'()#*!"#$%&'()*+, EÉF!"#$%&'()*+,-!"#$%&'()*+,- (2) In determining whether or not a person is fit and proper for the purpose of holding an estate agent s licence, the Authority shall have regard to the following (a) the fact that the person is an undischarged bankrupt, or has, within the 5 years immediately prior to the day on which the Authority considers, or, where appropriate, begins to consider the matter, made a composition or scheme of arrangement with his creditors; (b) the fact that the person is a director or officer of a company which is for the time being disqualified under this Ordinance for holding a licence, or was a director or officer of that company at the date when the company was so disqualified; (c) the fact that the person is a mentally disordered person or a patient within, in either case, the meaning of section 2 of the Mental Health Ordinance (Cap. 136); (d) any conviction, whether in Hong Kong or elsewhere, of the person for any offence (other than an offence under this Ordinance), being a conviction as regards which it was necessary to find that the person acted fraudulently, corruptly or dishonestly; and (e) any conviction of the person under this Ordinance in respect of which he has been sentenced to imprisonment, whether the sentence is suspended or not.

8 62!"#=A Selection of Disciplinary Cases!"#$% ON ENF!"#$%&'()*+#!"#$%&!"#' Section 21 of the Estate Agents Ordinance (1) A salesperson s licence shall not be granted to a body of persons, whether corporate or unincorporate. EOF!"#$%&'()*+,!"#$%&'()*&'! E~F!"#$%&'()*+,!"# EÄF!"#$%& EáF!"#$% RS=ENF=EàF=!"#$%&'()*+,!"# EááF!"# RS=ENF=EÇF=!"!"#$%&'()*+,!"# $% EáááF!"# RS=ENF=EÖF=!"!"#$%&'()*!) =E!F EÅF!"#$%&'#()*+!"#$%&' (2) An individual shall not be eligible to be granted or hold or continue to hold a salesperson s licence unless (a) he has attained the age which is for the time being prescribed for the purposes of this subsection; (b) he satisfies the Authority (i) that he has a good understanding of any regulations made for the time being under section 56 (1) (j) and which apply to a licensed salesperson; (ii) that he has the educational qualifications or experience or both prescribed for the time being in regulations under section 56 (1) (d) and which apply to him; and (iii) that he complies with such other requirements (if any) as are prescribed for the time being in regulations under section 56 (1) (g) and which apply to him; and (c) the Authority otherwise considers him a fit and proper person to hold a salesperson s licence. EPF!"#$%&'()*+,!"#$%&'()*+, E~F!"#$%&'%&()!"#$%&=E!"F!"#$%&'(R!!"#$ %&'()*!"# (3) In determining whether a person is fit and proper for the purpose of holding a salesperson s licence, the Authority shall have regard to the following (a) the fact that the person is an undischarged bankrupt, or has, within the 5 years immediately prior to the day on which the Authority considers, or, where appropriate, begins to consider the matter, made a composition or scheme of arrangement with his creditors;

9 A Selection of Disciplinary Cases!"# 63 EÄF!"#$%&'()*!"#$%&'()*+,!"#$%&'()*(+!"#$%&'()*+!"#$ EÅF!"#$%=E NPS F O!"#$%!&'(!" EÇF!"#$=E!"#$% F=!"#$%&'()*!"#$%&'()#*!"#$%&'()*+, EÉF!"#$%&'()*+,%!"#$%&'()*+, (b) the fact that the person is a director or officer of a company which is for the time being disqualified under this Ordinance for holding a licence, or was a director or officer of that company at the date when the company was so disqualified; (c) the fact that the person is a mentally disordered person or a patient within, in either case, the meaning of section 2 of the Mental Health Ordinance (Cap. 136); (d) any conviction, whether in Hong Kong or elsewhere, of the person for any offence (other than an offence under this Ordinance), being a conviction as regards which it was necessary to find that the person acted fraudulently, corruptly or dishonestly; and (e) any conviction of the person under this Ordinance in respect of which he has been sentenced to imprisonment, whether the sentence is suspended or not.!" PKTKO!"#$%&'()*+,-!"#$%=L=!"#$%= Paragraph of the Code of Ethics Estate agents and salespersons should avoid any practice which may bring discredit and/or disrepute to the estate agency trade.

10 64!"#=A Selection of Disciplinary Cases =Failing to deal with Building Orders in PASP!"#$%&'()*+,%-. An agent who failed to advise his clients to deal with the Building Orders before entering into a provisional agreement for sale and purchase had his licence suspended by the Disciplinary Committee.!"#$%&'($)*+,-!"#!!"#$%!"#$%&' The estate agent concerned served both the vendor and the purchaser in the sale and purchase of a luxury flat. The land search records showed that the property was subject to two orders issued by the Building Authority relating to an earth-retaining structure. The vendor also told the estate agent about the orders and that he had paid his share of expenses for the remedial work to the Incorporated Owners. Before the signing of the provisional agreement for sale and purchase and on the advice of his solicitors, the vendor instructed the estate agent to specify in the provisional agreement for sale and purchase that the sale was on an as is basis, which the estate agent did. However, the estate agent did not mention the two orders in the provisional agreement for sale and purchase.!"#$%&'()*+,-!"#$%!"#$%&!"!"#$%&'!"#$"%&'!()*+!"#$ Thereafter, the vendor and the purchaser had serious disagreement over, among other things, whether any money (and if so, how much) should be set aside for the compliance of the two orders. As no agreement could be reached on this issue, the sale and purchase fell through with the vendor paying a hefty compensation to the purchaser. The Disciplinary Committee, having heard the evidence from all parties!"#$%&'()*+,!"#$%&'())*+,!"#$%&'()*&+,!"#$%&n!"#$!"#$%&'()*+,!"!"#$%&!"#$$%&#'()!' concerned in the inquiry hearing and considered all the relevant facts, observed that the estate agent was under a duty to disclose the orders. Such information formed part of the prescribed property information under the category of subsisting encumbrances in Form 1 and the agent was required to possess and supply the same under the Practice Regulation. The fact that the estate agent had not advised the vendor on the effects of the two orders and provided for the compliance of the same in the provisional agreement for sale and purchase had prejudiced the vendor s interest in that the vendor was bound to give something which he could not possibly give, namely, a good title to the property. The Disciplinary Committee concluded that the estate agent had failed to protect and

11 A Selection of Disciplinary Cases!"# 65!"#$%&'()*+,!"#$%&'()*+,-!"#$%&'()*+!"#$%&'()*+,!"#$%&'()*+ promote the interest of his client, the vendor, by omitting to advise or cause the parties to ascertain or apportion their respective liabilities towards the discharge of the two orders in the provisional agreement for sale and purchase. For this reason, the Disciplinary Committee ordered that the licence of the estate agent be suspended for a period of time.!" PKQKN!"#$%!&'(!)!"#"$% Paragraph of the Code of Ethics Estate agents and salespersons, in engaging and accepting an appointment as an agent, should protect and promote the interests of their clients, carry out the instructions of their clients in accordance with the estate agency agreement and act in an impartial and just manner to all parties involved in the transaction.

12 66!"#=A Selection of Disciplinary Cases!"#$%=Improper handling of tenancy matters!"#$%&'()*+,(-!" #$%&'()*+,-!"# In arranging for his client to take over the unexpired tenancy of a shop unit from an existing tenant, an estate agent had unwittingly committed the parties also to an agreement for the transfer of business. This over-zealous estate agent was found by the Disciplinary Committee to have mishandled the tenancy matters of his client for which his licence was suspended. A prospective tenant was looking for a suitable shop unit for restaurant!"#$%&' ^!!"#$%&!"#$%!!"#$%&'()*+,-!"#QUIMMM!"#$%!"#$%&'()QRIMMM!"#$%&'#()*+, ^!"#$% OPMIMMM!"! business. The estate agent learned that A Limited, an existing tenant of a shop unit, wished to find a replacement tenant to take over the unexpired term of the tenancy and its cafe business. The tenancy was for 3 years with a monthly rent of $48,000. The estate agent told the prospective tenant that the landlord had agreed to reduce the rent to $45,000 and would enter into a new tenancy agreement with him and that A Limited would sell their cafe business for $230,000. Without clarifying with the landlord on the amount of rent and other terms to the proposed tenancy, the estate agent arranged for the signing of an agreement between A Limited as assignor and the prospective tenant as!"#$%&'( )*+,-!"#$%&'( ^!!"#$!!"#$!"QUIMMM!"#$%&! OPMIMMM!"#$%!"#$%&'()*+,- RPIMMM!"#$% &'!"#$%&'()*+,-!"#$% assignee for a term of 2.5 years at a rent of $48,000 and a supplemental agreement for $230,000 for the sale and purchase of the cafe business. It was however later found out that the landlord had never agreed to a rent below $53,000. The taking over of the tenancy therefore failed and the sale and purchase of the cafe business also failed. The estate agent nonetheless chased the prospective tenant for commission payable under the agreement which the prospective tenant did not think he had to pay. In the inquiry hearing, the estate agent admitted to the Disciplinary Committee that he was not experienced in handling such a complex transaction. It was only after the incident that he realized it was wrong to use the agreement that he made up as the document to effect the intended business transfer.

13 A Selection of Disciplinary Cases!"# 67 The Disciplinary Committee held that the estate agent had undertaken something beyond his knowledge and competence. He did not show an understanding of the law and practice of replacement tenant. Despite this, he had neither advised his client to seek legal advice concerning the transfer of business nor made it a condition that the agreement was subject!"#$%&'() *+,!"#$%&'()*+,-!"#$%&'()*!"#$%&'()*+,-#!"#$%&'()*$+,-!"#$%&'()*+,!- NO!"#$% to negotiation with the landlord. It was apparent to the Disciplinary Committee that the estate agent lacked professional knowledge and competence. As a result, the Disciplinary Committee suspended his licence for a period of time and ordered that he receive further training of not less than 12 hours.!" PKQKN!"#$%!&'(!)!"#"$% Paragraph of the Code of Ethics Estate agents and salespersons, in engaging and accepting an appointment as an agent, should protect and promote the interests of their clients, carry out the instructions of their clients in accordance with the estate agency agreement and act in an impartial and just manner to all parties involved in the transaction.

14 68!"#=A Selection of Disciplinary Cases!"#$%&'()!"*+=Convicted estate agent not eligible to hold licence!"#$%&!"#'()*!"#$%&'()*+,-!!"#$%&'(!"!"#$%&'()*+!"#$%& An estate agent was engaged in some other business before he obtained his estate agent licence. After he obtained his estate agent licence, as the result of acts committed in his former business, he was convicted of conspiracy to defraud a bank contrary to the Theft Ordinance and was sentenced to community service.!"#$%&'()* The Estate Agents Ordinance provides that an individual shall not be eligible to continue to hold an estate agent s licence unless the Authority considers him a fit and proper person to hold the licence. In determining whether or not a person is a fit and proper person to hold a licence, the Authority shall have regard to any conviction of the person for any offence, being a conviction as regards which it was necessary to find that the person acted fraudulently, corruptly or dishonestly. This is to protect public interest as estate agents would have a lot of opportunities to handle clients monies. The estate agent said that he was given a slight sentence as no real loss was suffered by anyone. There was only some problem with a letter of credit and the Police arrested him for forging documents to defraud the bank. He admitted that he was engaged in some other business and not practising estate agency and that whether he was granted a licence or not would not have any effect on his livelihood.!"#$%!"#$%&'!"#$%&'()*+,-!"#$%&'()%*+,!"#$ %&'()*#+!"#$%&'()*+,-!"#$%&'()*+,-)!"#$%&'()&*+,-!"#$%&'()*!"#$%&'()*+,!"#$%&'()#*+,-!"#$%&'()*+,-!"#$%&'()*+*,-!"#$%& '()*+,!"# The Disciplinary Committee, after careful consideration of the evidence presented and the representations made by the parties at the inquiry hearing, was of the view that the estate agent was not a fit and proper person to continue to hold a licence. The offence he committed was serious and impinged on his integrity. The Disciplinary Committee had a duty to protect public interest against unscrupulous practitioners. There was also nothing to show that the estate agent depended on estate agency work to make a living. In view of the above, the Disciplinary Committee decided that the estate agent s licence be revoked.

15 A Selection of Disciplinary Cases!"# 69!"#$% NV=EOF=EÇF=!"#$E!"#$%&'F!"#$%&'()*+,'(!"#$%&'()*+,-!"#$% Section 19(2) (d) of the Estate Agents Ordinance In determining whether or not a person is fit and proper for the purpose of holding an estate agent s licence, the Authority shall have regard to the following Any conviction, whether in Hong Kong or elsewhere, of the person for any offence (other than an offence under this Ordinance), being a conviction as regards which it was necessary to find that the person acted fraudulently, corruptly or dishonestly.

16 70!"#=A Selection of Disciplinary Cases!"#$%&'()*+, Licensee should treat registered encumbrances with caution!"#$%&'()*+,-%!"# An estate agent who failed to draw his client s special attention to existing encumbrances on land search records and to advise his client to seek independent legal advice before entering into a provisional agreement and purchase was given a warning by the Disciplinary Committee. The estate agent introduced to a purchaser a property put on sale by a!"#$%&'()*#$%&!"#$%&'(!"#$%!"#$%&' certain finance company as mortgagee. The estate agent was the parties dual agent. Before entering into the provisional agreement for sale and purchase, the estate agent told the purchaser that the property would be sold subject to all existing encumbrances and that title was deemed accepted. However, he did not inform the purchaser that a writ of summons was registered against the property prior to the registration of the mortgage pursuant to which the mortgagee vendor had exercised its power of sale. It was claimed by a former owner in the said writ of summons that an assignment made by another former owner was null and void. After the provisional agreement for sale and purchase was signed by the purchaser (but not yet signed by the vendor), it was faxed to the purchaser s solicitors. Without realizing that there was the land search!"#$%&'()*+()!"#$%!"#$!"#$%&$'!()*%!"#$%&'()*+",-!"#$%&%'()*+,-!"#$%&'()*+,!"#$%&'!!"#$%&'!"#!"#$%&'()*!"#$%&'()*+,-!"#$%&'( )*+!"#$%&'()*+,-!"#$%&'()*+,#-!"#$%&'()*+,!(!"#$%&'()*+#,!"#$%&'()*+#,-!"#$%&'%()*)+, and that it had revealed the said writ of summons, the purchaser only sought legal advice from his solicitors on the terms of the provisional agreement for sale and purchase signed by him but not on the land search. Meanwhile, the estate agent thought that the purchaser would consult his own solicitors on both the provisional agreement for sale and purchase as well as on the land search. As the estate agent received no contrary instruction from the purchaser, he arranged for the signing of the provisional agreement for sale and purchase by the mortgagee vendor the following day. Later on, when the purchaser s solicitors raised requisition on the said writ of summons, the mortgagee vendor refused to answer the requisition arguing that the purchaser had already agreed to purchase the property subject to all existing encumbrances. The purchaser on legal advice that no good title would be acquired, aborted the purchase and the deposit was forfeited to the mortgagee vendor.

17 A Selection of Disciplinary Cases!"# 71!"#$%&'!()*+ In the inquiry hearing before the Disciplinary Committee, the estate agent admitted that he had failed to use his best endeavours to promote and protect client interest in that he presented the purchaser s offer to the!"#$%& '()*+,!"#$%&'()&*+!"#$%&'()*+,-%!"# $%&'()*+!"#$%&'()*+,!"#$%&'()"*+,-!"#$%&'()*+,-!"#$%&'()'*+,-! mortgagee vendor on the assumption that the purchaser s solicitors had duly approved the provisional agreement for sale and purchase and the land search. The Disciplinary Committee, having observed that the provisional agreement for sale and purchase had been faxed to the purchaser s solicitors before it was delivered to the mortgagee vendor for execution and that the purchaser s solicitors should shoulder certain responsibilities for what had happened, decided that a warning be issued to the estate agent to warn him of the need to advise clients to obtain clear legal advice in order to resolve any doubts about existing encumbrances.!" PKQKN!"#$%!&'(!)!"#"$% Paragraph of the Code of Ethics Estate agents and salespersons, in engaging and accepting an appointment as an agent, should protect and promote the interests of their clients, carry out the instructions of their clients in accordance with the estate agency agreement and act in an impartial and just manner to all parties involved in the transaction.