Part 1: Part 1: Introduction to the Estate Agency Trade in Hong Kong

Which of the following are reasonable expectations that the public holds towards estate agents as professionals? (i) Estate agents should possess adequate knowledge of the law and property transactions (ii) Estate agents should provide clients with truthful and reliable property information (iii) Estate agents should exercise due diligence and make active efforts to carry out clients' instructions and safeguard their interests (iv) Estate agents should never exert undue pressure or coercion on clients and should allow clients sufficient room and freedom to make their own decisions regarding property transactions

• A. (ii), (iii) and (iv) only
• B. (ii) and (iii) only
• C. (iii) and (iv) only
• D. All of (i), (ii), (iii) and (iv)
• E. (i) and (ii) only

According to syllabus section 1.3.2, which of the following items are classified as "technical factors" (as distinct from housing policy and land policy) that influence property prices in Hong Kong? (i) The level of bank interest rates (ii) Government land sale and public auction policies (iii) Regulations relating to mortgage lending (such as loan-to-value ratio caps) (iv) Macroeconomic data (such as GDP growth rate and employment/unemployment figures)

• A. (i), (iii) and (iv) only
• B. (i) and (ii) only
• C. (i) and (iii) only
• D. All of (i), (ii), (iii) and (iv)
• E. (ii) and (iv) only

Chee-ming is revising the regulatory framework of the Hong Kong real estate agency industry. Which of the following statements regarding the establishment and functions of the Estate Agents Authority (EAA) is correct?

• A. The Estate Agents Authority is mainly responsible for regulating commercial property transactions in Hong Kong, while the Housing Authority oversees residential property agency work.
• B. The Estate Agents Authority is a government department whose members are all civil servants responsible for regulating the estate agency industry.
• C. The Estate Agents Authority was established by the Financial Secretary under the Companies Ordinance (Cap. 622) as a non-profit company to regulate estate agents.
• D. The Estate Agents Authority is a statutory body established under the Estate Agents Ordinance (Cap. 511), and its principal functions include issuing licences to estate agents and salespersons and handling complaints against licensees.
• E. All members of the Estate Agents Authority are elected by the industry without any government-appointed members, so as to ensure industry self-regulation.