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hk real estate exam
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- Question 1 of 30
1. Question
Which of the following statements should be met in order for an ex-holder of a salesperson’s license is permitted to apply for the grant of an estate agent’s license?
I. He applies six months after the suspension of his license.
II. He applies within 24 months from the date on which the suspension took effect.
III. He passed a qualifying examination for salespersons at any time.
IV. He has worked for at least two years as a salesperson.
V. He was a passer of a qualifying exam for estate agents.CorrectAn ex-holder of a salesperson’s license is permitted to apply for the grant of an estate agent’s license if, within 24 months from the date of which the suspension took effect, he makes his application. The ex-holder has passed a qualifying examination for estate agents or he has completed a training course for estate agents on or before 31 December 2001 where he was a senior practitioner.
IncorrectAn ex-holder of a salesperson’s license is permitted to apply for the grant of an estate agent’s license if, within 24 months from the date of which the suspension took effect, he makes his application. The ex-holder has passed a qualifying examination for estate agents or he has completed a training course for estate agents on or before 31 December 2001 where he was a senior practitioner.
- Question 2 of 30
2. Question
In relation to the switching of types of licenses, which of the following statements are correct?
I. Application for the grant of a salesperson’s license may be done by a holder of an estate agent’s license.
II. A holder of a salesperson’s license who has passed at any time a qualifying examination for estate agents may apply for the grant of an estate agent’s license.
III. A holder of a salesperson’s license is not allowed to switch to an estate agent’s license.
IV. A holder of an estate agent’s license may apply for a grant of a salesperson’s license if he has completed a training course for salespersons on or before 31 December 2001.
V. A holder of an estate agent’s license is not allowed to switch to a salesperson’s license.CorrectThe Code of Ethics allows switching of licenses based on the following rules. A holder of an estate agent is allowed to switch or apply for a grant of a salesperson’s license. However, a holder of salesperson’s license may switch to an estate agent’s license if he was able to pass any estate agent’s qualifying examination at any time, or he may have completed an estate agent’s training course on or before 31 December 2001 where he is a senior practitioner.
IncorrectThe Code of Ethics allows switching of licenses based on the following rules. A holder of an estate agent is allowed to switch or apply for a grant of a salesperson’s license. However, a holder of salesperson’s license may switch to an estate agent’s license if he was able to pass any estate agent’s qualifying examination at any time, or he may have completed an estate agent’s training course on or before 31 December 2001 where he is a senior practitioner.
- Question 3 of 30
3. Question
When entering into agreements for sale and purchase or lease of a property, a licensee must be observe and comply with the following:
CorrectA licensee should at all times be cautious when entering into agreements for sale and purchase or lease of any property. Before the agreement, the licensee has to conduct first an up-to-date land search of the property and give a copy to the purchaser. After the agreement is signed, the licensee should stop marketing the property and during signing the licensee must explain to the client all the details but if the client is still confused in some parts, the licensee should recommend seeking legal advice to the client.
IncorrectA licensee should at all times be cautious when entering into agreements for sale and purchase or lease of any property. Before the agreement, the licensee has to conduct first an up-to-date land search of the property and give a copy to the purchaser. After the agreement is signed, the licensee should stop marketing the property and during signing the licensee must explain to the client all the details but if the client is still confused in some parts, the licensee should recommend seeking legal advice to the client.
- Question 4 of 30
4. Question
Which of the following statements are to be complied with by a licensee in relation to commissions?
I. If a licensee recommends the services of another person to a client, he has to make sure at the time of the recommendation that the client is aware of the beneficial interest he will get from the recommendation.
II. A written receipt must be issued by the licensed estate agent to the client immediately after payment of commission.
III. Copy of the written receipts must be kept by the licensed estate agent for not less than three years after it is issued.
IV. A licensee is not permitted to recommend the services of any other person to the client to refrain from conflict of interest.
V. After receiving the payment for any commission, the licensed estate agent has to send a notification to EAA for the commission received using the appropriate form.CorrectA licensed estate agent is required to give the client a receipt of payment for any commission to the client and the licensed estate agent must keep a copy of the receipt for not less than three years after it is issued. A licensee is allowed to recommend the services of another person, however, he has to disclose to the client any beneficial interest he has at the time of the recommendation.
IncorrectA licensed estate agent is required to give the client a receipt of payment for any commission to the client and the licensed estate agent must keep a copy of the receipt for not less than three years after it is issued. A licensee is allowed to recommend the services of another person, however, he has to disclose to the client any beneficial interest he has at the time of the recommendation.
- Question 5 of 30
5. Question
A license estate agent is required to maintain proper accounts and records of all estate-related transactions entered. Which of the following statements are correct in relation to this?
I. A licensed estate agent should keep records of receipts issued for not less than one year after the receipt is issued.
II. A certificate may be required by the EAA from the licensed estate agent issued and signed by its directors verify that the agent has maintained proper accounts.
III. The records maintained by the licensed estate agent may be inspected by authorized EAA officers.
IV. EAA may require a licensed estate agent to furnish a certificate issued by a certified public accountant.
V. A licensed estate agent should keep a copy of written receipts issued to the client for not less than three years after the receipt is issued.CorrectA licensed estate agent should keep the proper recording of all transactions entered. He is required to issue written receipts immediately after receiving money from the client and make sure to keep a copy of such receipts for not less than three years after the receipts are issued. Authorized EAA officers may inspect these records and EAA may require the licensed estate agent to provide a certification from a certified public accountant certifying that he has kept proper accounts in accordance with section 12(1) of the PR.
IncorrectA licensed estate agent should keep the proper recording of all transactions entered. He is required to issue written receipts immediately after receiving money from the client and make sure to keep a copy of such receipts for not less than three years after the receipts are issued. Authorized EAA officers may inspect these records and EAA may require the licensed estate agent to provide a certification from a certified public accountant certifying that he has kept proper accounts in accordance with section 12(1) of the PR.
- Question 6 of 30
6. Question
When withdrawing money from a trust account, what should a license estate agent observe and follow?
I. Money withdrawals should only be done according to the client’s instructions.
II. Withdrawals of money are only through cheque or by an electronic funds transfer.
III. A licensed estate agent may withdraw money in cash if permitted by the client.
IV. A licensed estate agent is not allowed to withdraw money on behalf of the client.
V. A licensed estate agent may withdraw money anytime without the consent of the client as long as it is properly recorded.CorrectA licensed estate agent may withdraw money from a trust fund if being instructed only by the client. Such withdrawals may only be done through cheque or by an electronic funds transfer.
IncorrectA licensed estate agent may withdraw money from a trust fund if being instructed only by the client. Such withdrawals may only be done through cheque or by an electronic funds transfer.
- Question 7 of 30
7. Question
In an event where a licensee in any circumstances failed to observe and comply with the Code of Ethics, what will be the possible implications of this to the licensee?
I. The licensee will be given another chance for the first offense and suspension for the second offense and cancellation of license for the succeeding offenses.
II. The licensee will be considered as a not fit and proper person under the EAO.
III. The licensee may lose their eligibility to be granted or to continue to use their licenses.
IV. The licensee will not be subjected to any inquiry about the offense made and will be given disciplinary action immediately.
V. The licensee may be subjected to disciplinary action applicable to the offense incurred.CorrectCompliance with the Code of Ethics should be a priority for each and every licensee in order to be able to continue working in the business. However, failure to do so will in effect result in being considered are not fit and proper person under the EAO. Consequently, the license may be refused or revoked or possible disciplinary action may be taken as deemed necessary.
IncorrectCompliance with the Code of Ethics should be a priority for each and every licensee in order to be able to continue working in the business. However, failure to do so will in effect result in being considered are not fit and proper person under the EAO. Consequently, the license may be refused or revoked or possible disciplinary action may be taken as deemed necessary.
- Question 8 of 30
8. Question
Estate agents are expected to have fully understood all the related legislation and requirements as established by the proper authorities. Which of the following statements below are reflective of this requirement?
I. Estate agents and salespersons in the practice of their work are required to be knowledgeable about the EAO, subsidiary legislations, Code of Ethics and all relevant guidelines.
II. Estate agents and salespersons should be updated for all developments in the real estate market changes including laws and government regulations.
III. Estate agents and salespersons are demanded to protect clients against fraud and instead should be honest.
IV. Estate agents and salespersons at all times must take actions that promote the interests of their clients.
V. Estate agents and salespersons must provide services and opinions to the clients which are anchored on knowledge and experience in the real estate business.CorrectEstate agents and salespersons in order to be effective in their line of work are required to be well versed in all the laws and guidelines and any other relevant legislation and must make themselves updated to the changes in these areas. Also, they are required to provide services and opinions that are based on accurate grounds.
IncorrectEstate agents and salespersons in order to be effective in their line of work are required to be well versed in all the laws and guidelines and any other relevant legislation and must make themselves updated to the changes in these areas. Also, they are required to provide services and opinions that are based on accurate grounds.
- Question 9 of 30
9. Question
Which of the following should be acted upon by estate agents and salespersons which exhibits upholding ethics and moral standards?
I. Estate agents and salespersons must make it a priority that the interests of their clients are protected.
II. Estate agents and salespersons should only do what is instructed by the client and making sure that these instructions are according to the estate agency agreement.
III. Estate agents and salespersons should be fair in conducting transactions to all clients involved.
IV. Estate agents and salespersons should attend training and workshops to make themselves updated.
V. Estate agents and salespersons must keep a proper recording of all transactions entered.CorrectEstate agents and salespersons are expected to be ethical and moral while doing their practice of work. This can be done by making sure that they protect and promote the interests of their clients. Following only the instructions of the clients that are stated in the estate agency agreement. Must be fair to all parties involved.
IncorrectEstate agents and salespersons are expected to be ethical and moral while doing their practice of work. This can be done by making sure that they protect and promote the interests of their clients. Following only the instructions of the clients that are stated in the estate agency agreement. Must be fair to all parties involved.
- Question 10 of 30
10. Question
When conducting estate agency business, estate agents and salespersons must establish a good working relationship with other agents, this may be done by:
I. Disclosing to the clients all the possible benefits he may get from the agreement.
II. Refraining from directly or indirectly destroying the reputation of other agencies.
III. Not doing anything that may discredit and/or ruin the reputation of the estate agency trade.
IV. Complying with the principles of fair competition.
V. Avoiding the acceptance of an appointment involving property that they have a beneficial interest.CorrectEstate agents and salespersons must help promote good relationships in the business. That is, they should avoid doing anything that will ruin the reputation of other agencies. Also, they should avoid anything as well that may have a negative impact on the estate agency trade. Fair competition must be promoted and practiced by all.
IncorrectEstate agents and salespersons must help promote good relationships in the business. That is, they should avoid doing anything that will ruin the reputation of other agencies. Also, they should avoid anything as well that may have a negative impact on the estate agency trade. Fair competition must be promoted and practiced by all.
- Question 11 of 30
11. Question
Which of the following statements are applicable all licensees?
I. A licensee may apply for replacement of a lost license after six months from the time it was lost.s
II. When doing estate agency work, a licensee should only use the name indicated in his license.
III. A license should immediately stop doing any estate agency work when suspension or revocation imposed on him takes effect.
IV. EAA must be notified by a licensee when he ceased to be engaged in estate agency work within six months after the stoppage.
V. Form 8 must be completed within 31 days of not engaging anymore in estate agency work by a licensee.CorrectAll licensees are required to use only the names specified in their licenses. In case that his license his suspended or revoked under any circumstances, the licensee must stop immediately performing estate agency work. The licensee as well is required to notify EAA within 31 days when he is no longer engaged in estate agency work.
IncorrectAll licensees are required to use only the names specified in their licenses. In case that his license his suspended or revoked under any circumstances, the licensee must stop immediately performing estate agency work. The licensee as well is required to notify EAA within 31 days when he is no longer engaged in estate agency work.
- Question 12 of 30
12. Question
Mr. Neil is a licensed estate agent who started a business in estate agency is currently working with his marketing team on an advertisement for online marketing. What are the required information indicated in the Code of Ethics that should be included in his advertisement in this case?
I. Statement of particulars of business number or his license number.
II. The business name indicated in the relevant statement of particulars of business.
III. Year the business started.
IV. Name of the directors.
V. Place of business indicated in the relevant statement of particulars of business.CorrectA licensed estate agent which is doing estate agency work and when making advertisements or any other documents used in the business must include the following information. The license number or statements of business number, business name that is specified in the relevant statement of particulars of business as well as the business location except only if the advertisements in non-brochure and pamphlet form).
IncorrectA licensed estate agent which is doing estate agency work and when making advertisements or any other documents used in the business must include the following information. The license number or statements of business number, business name that is specified in the relevant statement of particulars of business as well as the business location except only if the advertisements in non-brochure and pamphlet form).
- Question 13 of 30
13. Question
Licensed estate agents who are doing business of estate agency work must do the following:
I. Assign one director to manage all the offices in case there is more than one office.
II. Must make it certain that all salespersons working in the business have a valid estate agent’s or salesperson’s license whichever is applicable.
III. Appoint a manager who is a licensed estate agent as well for each of the offices in case there is more than one office.
IV. Should notify only the EAA upon employment of a person as a salesperson and does not need to do so upon the termination of employment.
V. Money received for or account of a client must use only the money for the designated purpose.CorrectLicensed estate agents who are doing business of estate agency work should make sure that all current and prospective employees have valid licenses applicable to their line of work. EAA should be notified both upon employment and termination of employment of a salesperson. Importantly, money received from clients should only be used according to its proper purpose.
IncorrectLicensed estate agents who are doing business of estate agency work should make sure that all current and prospective employees have valid licenses applicable to their line of work. EAA should be notified both upon employment and termination of employment of a salesperson. Importantly, money received from clients should only be used according to its proper purpose.
- Question 14 of 30
14. Question
All companies that are holders of an estate agent’s license must:
I. Ensure that at least one of its directors has a valid estate agent’s license.
II. Employ make sure that all of its directors have both a valid estate agent’s and a salesperson’s license.
III. Have at least one director who is a holder of a valid estate agent’s license issued by EAA.
IV. Make sure that all of its directors have a valid estate agent’s license issued by EAA.
V. Notify EAA within 31 days of appointing a person as a director or when such a person ceases to be a director by completing Form 11 in the Schedule of the PR.CorrectAll companies that are holders of an estate agent’s license are required to have at least one director who has a valid license. If it has more than one director, all of them should have a valid license as well. EAA must be notified within 31 days of the appointment of a person as director or if the person ceased to be a director.
IncorrectAll companies that are holders of an estate agent’s license are required to have at least one director who has a valid license. If it has more than one director, all of them should have a valid license as well. EAA must be notified within 31 days of the appointment of a person as director or if the person ceased to be a director.
- Question 15 of 30
15. Question
What should a licensee do when handling the sale and purchase or the lease of residential properties in Hong Kong?
I. Prior to entering into any appointment, a licensed estate agent must inform the person that he is a licensed estate agent and must provide the client with his license number.
II. A licensed salesperson is required to inform the client his license number and that he has a valid license for doing estate agency work.
III. Only a licensed estate agent is permitted to handle a sale and purchase or the lease of residential properties.
IV. A licensee must be compliant with all the provisions in the PR for handling such transactions and complete Forms 1-6 in the Schedule to the PR in doing so.
V. Only a licensed salesperson is permitted to handle a sale and purchase or the lease of residential properties.CorrectIn handling the sale and purchase or the lease of residential properties in Hong Kong, both all licensees(estate agents/salespersons) must inform their clients/person whom they are conducting business with that they have a valid license do such estate work. In handle such transactions, he must complete Forms 1-6 in the Schedule to the PR.
IncorrectIn handling the sale and purchase or the lease of residential properties in Hong Kong, both all licensees(estate agents/salespersons) must inform their clients/person whom they are conducting business with that they have a valid license do such estate work. In handle such transactions, he must complete Forms 1-6 in the Schedule to the PR.
- Question 16 of 30
16. Question
In relation to the payment of a commission, what is stated in the Code of Ethics when a licensee is acting as a sub-listing agent?
CorrectWhen a licensee is acting as a sub-listing agent, he should not demand to the client concerned of the principal-agent payment of any commission.
IncorrectWhen a licensee is acting as a sub-listing agent, he should not demand to the client concerned of the principal-agent payment of any commission.
- Question 17 of 30
17. Question
What should a license estate agent do to exhibit effective control of his estate agency business in order to make sure that his employees comply with the EAO and its subsidiary legislation?
CorrectA licensed estate agent must show that he is able to effectively control his employees or persons in order to ensure that they comply with the EAO and its subsidiary legislation. This can be done by establishing proper procedures and control for the effective supervision and management of his estate agency business.
IncorrectA licensed estate agent must show that he is able to effectively control his employees or persons in order to ensure that they comply with the EAO and its subsidiary legislation. This can be done by establishing proper procedures and control for the effective supervision and management of his estate agency business.
- Question 18 of 30
18. Question
Which of the following situations that a holder of a salesperson’s license may be permitted to apply for the grant of an estate agent’s license?
CorrectA holder of a salesperson’s license may be permitted to apply for the grant of an estate agent’s license provided that, he has passed at any time an estate agent qualifying examination for estate agents. He has completed an estate agent training course on or before 31 December 2001.
IncorrectA holder of a salesperson’s license may be permitted to apply for the grant of an estate agent’s license provided that, he has passed at any time an estate agent qualifying examination for estate agents. He has completed an estate agent training course on or before 31 December 2001.
- Question 19 of 30
19. Question
If the landlord is not represented by any estate agent and the licensed estate agent is acting for the tenant, the license estate agent should:
CorrectIf the licensed estate agent is acting for a tenant and the landlord does not have an estate agent representative, the licensed estate agent is required to complete Form 2 with the tenant.
IncorrectIf the licensed estate agent is acting for a tenant and the landlord does not have an estate agent representative, the licensed estate agent is required to complete Form 2 with the tenant.
- Question 20 of 30
20. Question
What does it mean if a property is a self-contained unit?
CorrectA self-contained unit is an independent property wherein cooking facilities and bathroom with or without lavatory are provided separately.
IncorrectA self-contained unit is an independent property wherein cooking facilities and bathroom with or without lavatory are provided separately.
- Question 21 of 30
21. Question
Which of the following situations wherein form is not prescribed for the purposes of the EAO?
CorrectIf a car parking space alone is for sale and purchase or for lease, for the purposes of the EAO, no form is prescribed in this situation. Also if the property for lease is not a self-contained unit, no form is prescribed.
IncorrectIf a car parking space alone is for sale and purchase or for lease, for the purposes of the EAO, no form is prescribed in this situation. Also if the property for lease is not a self-contained unit, no form is prescribed.
- Question 22 of 30
22. Question
If a licensed estate agent entered into an estate agency agreement and he acts for a vendor, which forms are prescribed in this situation?
CorrectIn relation to any property in which a licensed estate agent entered into an estate agency agreement and he is acting as the vendor, Form 1 for sale and purchase and Form 2 for leasing are prescribed in this situation.
IncorrectIn relation to any property in which a licensed estate agent entered into an estate agency agreement and he is acting as the vendor, Form 1 for sale and purchase and Form 2 for leasing are prescribed in this situation.
- Question 23 of 30
23. Question
In which of the following events that a licensed estate agent should enter into an estate agency agreement with a purchaser?
CorrectA licensed estate agent may enter into an estate agency agreement with a purchaser before the inspection by the purchaser of the property has been arranged and before the agreement has been signed.
IncorrectA licensed estate agent may enter into an estate agency agreement with a purchaser before the inspection by the purchaser of the property has been arranged and before the agreement has been signed.
- Question 24 of 30
24. Question
What should a licensed estate agent do in an event where an unexecuted estate agency agreement must be sent to a client for signature?
CorrectA licensed estate agent must send to the client a copy unexecuted estate agency agreement and together with it all the documents related to the agreement.
IncorrectA licensed estate agent must send to the client a copy unexecuted estate agency agreement and together with it all the documents related to the agreement.
- Question 25 of 30
25. Question
What is the prescribed duration that a licensed estate agent should give the client a copy of the executed estate agency agreement?
CorrectIf an estate agency agreement has signed and thus becomes an executed agency agreement, the licensed estate agent must provide a copy of such agreement to the client within seven days following the execution of such agreement.
IncorrectIf an estate agency agreement has signed and thus becomes an executed agency agreement, the licensed estate agent must provide a copy of such agreement to the client within seven days following the execution of such agreement.
- Question 26 of 30
26. Question
The written agreement in the first sale of an undivided share in land in which a property forms part by the vendor of property should state that:
CorrectThe written agreement should state that vendor shall supply the agent with Part 2 of Form 1, except if the property is a unit in an uncompleted building.
IncorrectThe written agreement should state that vendor shall supply the agent with Part 2 of Form 1, except if the property is a unit in an uncompleted building.
- Question 27 of 30
27. Question
What does the Code of Ethics state in relation to a licensed estate agent acting for both the vendor and the purchaser?
CorrectA licensed estate agent is allowed to act for both the vendor and the purchaser provided that both are informed of the situation.
IncorrectA licensed estate agent is allowed to act for both the vendor and the purchaser provided that both are informed of the situation.
- Question 28 of 30
28. Question
In relation to the advertisement of a property, a license estate agent must:
CorrectWhen issuing any advertisements for a property, the licensed estate agent shall obtain the written consent of the vendor before proceeding with any advertisements.
IncorrectWhen issuing any advertisements for a property, the licensed estate agent shall obtain the written consent of the vendor before proceeding with any advertisements.
- Question 29 of 30
29. Question
Which of the following is TRUE for ex-holders of an estate agent’s or salesperson’s license?
CorrectEx-holders of estate agent’s or salesperson’s license may apply for the same type of license provided they observe the relevant period which is within 24 months from when the license was suspended or from the day the license becomes invalid by reason of expiration or otherwise.
IncorrectEx-holders of estate agent’s or salesperson’s license may apply for the same type of license provided they observe the relevant period which is within 24 months from when the license was suspended or from the day the license becomes invalid by reason of expiration or otherwise.
- Question 30 of 30
30. Question
Which of the following should a licensed estate agent comply when releasing deposit money?
CorrectA licensed estate agent must follow the terms of the agreement for sale and purchase or the lease of the property when releasing deposit money or with the purchaser’s instructions.
IncorrectA licensed estate agent must follow the terms of the agreement for sale and purchase or the lease of the property when releasing deposit money or with the purchaser’s instructions.
