Calls To License Estate Agents Handling Non-HK Sales

The Consumer Council on Thursday called on the government to tighten regulation on real estate agents handling the sale of first-hand properties that are outside of Hong Kong by requiring them to be licensed.

Currently, agents who sell only non-Hong Kong properties are exempt from licensing.

Paul Lam, the council’s chairman, said that created a loophole.

“If you deal with properties outside Hong Kong exclusively, you will not be required to obtain a licence under the Estate Agents Ordinance," he said. “We recommend strongly that all estate agents carrying out such activities should be licensed."

The council said there has been a rise in the number of complaints relating to the sale of first-hand residential properties outside of the city in recent years. Most of the cases involved properties in mainland China and Thailand.

The council also pointed out that advertisements relating to non-Hong Kong properties can be misleading.

"Certain information should be perhaps prohibited, for example statements which tend to be misleading or tend to be an exaggeration, say 'I can guarantee that you can obtain a certain fixed percentage of return within how many years,'" he said.

The council called on prospective buyers to verify sales information, rather than simply relying on data provided by a certain agent.