Part 8: Part 8: Management of Estate Agency Business and Supervision of Salespersons
Estate Agency Qualifying Examination · Part 8: Part 8: Management of Estate Agency Business and Supervision of Salespersons
Kin-kwok is the sole proprietor and principal office manager of Wing Fai Estate Agency, and is planning to open a new branch in Kwun Tong while continuing to serve as manager of the principal office. He needs to appoint a manager for the new branch. Chi-wai and Hiu-lam are both licensed salespersons who have been working for Wing Fai Estate Agency for six years and eight years respectively, while Fung-yee is a licensed estate agent who has been with Wing Fai Estate Agency for only ten months. Which of the following persons is/are eligible to be appointed as manager of the new branch? (i) Kin-kwok (ii) Chi-wai (iii) Hiu-lam (iv) Fung-yee
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Correct Answer: B
- Each place of business must be under the 'effective and independent' control of an appointed manager (Estate Agents Ordinance, s. 38(1)(a)).
- A branch manager must hold an estate agent's licence; a licensed salesperson does not satisfy this requirement.
- The same person cannot simultaneously act as manager of two places of business, as this would violate the requirement for 'independent control'.
- Length of service is not a determining factor; what matters is the type of licence held by the individual.
Shun Fung Property Consultants Limited has opened a new branch and appointed Mr. Lam as the manager of that branch. Under the Estate Agents Ordinance, which of the following are requirements that Shun Fung must comply with? (i) Apply to the Authority for a business details statement in respect of the new branch (ii) Notify the Estate Agents Authority that the new branch has commenced operation within thirty-one days from the date of opening (iii) Notify the Estate Agents Authority of Mr. Lam's appointment as manager of the new branch within thirty-one days from the date of his appointment (iv) Arrange for each director of Shun Fung to apply individually for an estate agent's licence
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Correct Answer: A
- A separate business details statement must be applied for in respect of each place of business and business name (Licensing Regulation, s.10).
- The appointment or revocation of appointment of a manager must be notified to the Authority within thirty-one days (Estate Agents Ordinance, s.40).
- There is no requirement to separately notify the Authority merely because a new branch has commenced operation.
- Not every director is required to hold an estate agent's licence; however, at least one director must be licensed, and any director who carries on estate agency work must be individually licensed (s.20).
The Estate Agents Authority has issued a Practice Circular providing operational guidance to practitioners on assisting in the prevention of money laundering activities. According to that Practice Circular, when a person engaged in estate agency work suspects that a transaction may involve money laundering, to which of the following organisations should a suspicious transaction report be made?
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Correct Answer: B
- Under the Estate Agents Authority's Practice Circular on anti-money laundering, practitioners who suspect a transaction involves money laundering must file a suspicious transaction report with the Joint Financial Intelligence Unit (JFIU).
- The JFIU is the designated body responsible for receiving and analysing suspicious transaction reports in Hong Kong.
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