Concrete Analysis | Be aware of these regulations affecting property advertisements

I would like to share a case concerning a property advertisement with misleading or wrong information.

An estate agency company issued an advertisement of a residential property for sale or rent with information of its block number, saleable area and gross floor area. Several photos showing the view of the property and its interior were also included.

However, the photos did not belong to the advertised property but belonged to another property located in the same block on a lower floor, which shared the same direction and view. The staff of the estate agency company found the photos in the company’s computer database and used them for the listed property. Later on, when the owner of the other property discovered the advertisement, she lodged a complaint with the Estate Agents Authority (EAA).

An inquiry hearing was conducted after an investigation. The EAA Disciplinary Committee was of the view that the estate agency adopted the photos of another flat without carefully verifying the information when issuing the advertisement and was in breach of section 9(1) of the Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation, which stipulates that a licensed property agent shall not cause or permit to be issued an advertisement wholly or partly relating to his estate agency business which includes any statement or particular that is false or misleading in a material particular. The Committee decided to reprimand the estate agency company and impose a fine of HK$11,500 (US$1,465).

To enhance the accuracy and transparency of property advertisements in the market, the EAA issued a Practice Circular, which took effect on December 1, 2018. The guidelines of this circular are applicable to all types of properties, including first-hand and second-hand properties, non-residential properties and properties situated outside Hong Kong.