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The Sales of First-hand Residential Properties Authority (SRPA) today (May 26) advised prospective purchasers of first-hand residential properties to clarify with the estate agents who promote first-hand residential properties to them whether the latter are acting for the vendor, the prospective purchasers, or both the vendor and the prospective purchasers, and whether the estate agents may act for both the vendor and the prospective purchasers subsequently. Knowing beyond doubt the role of the estate agents in the sale of first-hand residential properties will help prospective purchasers safeguard their own interests.
The SRPA has observed a growing trend in the past few months in which vendors, in offering to sell first-hand residential properties, declared that they themselves had taken up the role of estate agents or they had only appointed their associated corporation as the estate agent. The other estate agents were merely introducing prospective purchasers to the vendors when promoting the sales of the first-hand residential properties concerned. Those other estate agents did not act for the vendors and did not have any authority from the vendors to sell any property, enter into an agreement or make any representation, warranty or undertaking for and on behalf of the vendors.
Under the aforementioned circumstances, prospective purchasers should be prepared that any representation, warranty or undertaking made to them by the estate agents in promoting the sale of first-hand residential properties may come from the estate agents alone, and may not be a representation, warranty or undertaking made by the vendors. When there are problems regarding the representation, warranty or undertaking later, the vendors may consider that they do not have to bear responsibility.
The SRPA is aware that vendors of a few first-hand residential developments, such as MacPherson Place, which is yet to be offered for sale, and DIVA, which is currently being offered for sale, had stated on their price lists that they themselves had taken up the role of estate agents or they had only appointed their associated corporation as the estate agent.
The SRPA is seeking information from the aforementioned vendors on the relationship between those vendors and the other estate agents in the sale of first-hand residential properties in the aforementioned developments.
Under the Residential Properties (First-hand Sales) Ordinance, if the vendor has appointed an estate agent to act in the sale of any specified residential property in a development, a price list for the development must set out the name of the estate agent.
Ends/Monday, May 26, 2014
Issued at HKT 17:19
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