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, sole proprietor and head-office manager of Wing Fai Estate Agency, will stay head-office manager after opening a new branch and must appoint a branch manager. Chi Wai and Hiu Lam are licensed salespersons with six and eight years' service; Fung Yi, a licensed estate agent, joined ten months ago. Who is eligible? (i) Kin Kwok (ii) Chi Wai (iii) Hiu Lam (iv) Fung Yi
Why: (i) Incorrect: Each office must be under the effective and independent control of an appointed manager (Estate Agents Ordinance s.38(1)(a)); Kin Kwok already manages the head office and one person cannot manage two offices without breaching 'independent control'.(ii) Incorrect: An appointed manager must hold an estate agent's licence; anyone who is not a licensed estate agent is ineligible (s.38). Chi Wai holds only a salesperson's licence; six years' service is irrelevant.(iii) Incorrect: Likewise Hiu Lam holds only a salesperson's licence; eight years' service cannot substitute for the licence type.(iv) Correct: Fung Yi holds an estate agent's licence and manages no other office, so she is eligible; length of service is not a criterion.The answer is therefore B.
Shun Fung Property Consultants Ltd has opened a new branch and appointed Mr Lam as its manager. Under the Estate Agents Ordinance, which of the following must Shun Fung do? (i) Apply to the EAA for a statement of particulars of business for the branch (ii) Notify the EAA within 31 days of opening that the branch is operating (iii) Notify the EAA of Mr Lam's appointment within 31 days of making it (iv) Have every director of the company obtain an estate agent's licence
Why: (i) Correct: A separate statement of particulars of business is required for each place of business and business name (Estate Agents (Licensing) Regulation reg.10).(ii) Incorrect: The Ordinance does not require a separate notice that a branch has opened; what must be notified are the statement of particulars and matters such as manager appointments.(iii) Correct: A licensed estate agent must notify the EAA in writing within 31 days of appointing or ceasing to appoint a manager (Estate Agents Ordinance s.40; EALP Part 2 p16 para 45).(iv) Incorrect: Not every director needs a licence: the company must have at least one director holding an estate agent's licence, and any director who carries on estate agency work must be licensed (s.20).The answer is therefore A.
Under the EAA's Practice Circular on anti-money laundering, to which body should an estate agency practitioner report a suspicious transaction?
Why: Under the EAA's Practice Circular, a practitioner who suspects money laundering must file a suspicious transaction report with the Joint Financial Intelligence Unit (JFIU) (HKRE sample questions p40). The EAA handles licensing and discipline only and does not receive suspicious transaction reports; the HKMA supervises banks only.
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