Bureau of Supervision: new disk sales complaints increased by 16%
With the increasing popularity of mobile communications software, many estate agents use relevant software to contact clients for the opportunity to facilitate the transaction. However, there is also a risk of non-compliance. Last year, the Estate Agents Authority (GPGE) received a total of 427 complaints about property sales for properties sold. Although the figure was about 10.1% lower than 475 in 2016, 19 people were still subject to cancellation by the authority. While 28 were suspended. One of them was even more involved in cases where the agency first used the mobile instant messaging software WhatsApp to make fraudulent accusations against customers. It was the first case of a similar “nail” sanction by the agency.
Scratched war agent WhatsApp temporary “nail”
The Lands Authority Chairman Leung Wing-cheung said that in the past year, the bureau received 427 complaints about real estate agent sales to lodge a complaint that “improper handling of provisional sale and purchase agreements (or temporary tenancies)” was the most common, with a total of 132 cases, accounting for more than 30% of the cases. It also recorded 63 complaints or about 14.8% of complaints about “providing inaccurate or misleading property information.” Of the complaints, 86 came from first-hand property sales, an increase of about 16.2% as compared with 74 in 2016, which represented an increase of two consecutive years. Liang Yongxiang pointed out that the complaints were mainly related to the issue of illegal advertising agents, did not fulfill the rebate promises and customer support and so on.
In addition, the Bureau imposed penalties on 344 estate licensees or former licensees last year, which was similar to that of 2016, of whom 19 were revoked. They mainly involved criminal cases, bankruptcies and discrepancies in academic qualifications. There were 28 suspension of licenses, one of which involved cases where agents were punished with clients through WhatsApp. Director of Bureau of Lands and Banners Han Wanping bluntly said that the use of communication software and client abuse of cases, the parties involved mainly use indecent words, the action detrimental to the image of the industry.
Apart from the above non-compliance cases, the agency also found a non-compliance incident that broke out on behalf of the agents during the inspection of the new outlets in the past year. Han Wanping said the relevant case has been completed. The Founder Bureau is investigating whether to revoke the licenses of those involved and emphasizes that the authorities will not tolerate acts of proxy fighting.
Looking ahead This year, the government is planning to amend the Anti-Money Laundering and Terrorist Financing (Financial Institutions) Ordinance to extend the prescribed requirements for customer due diligence measures to designated non-financial companies and individuals, including the real estate agency industry.
Mr Leung said the council will pay close attention to the legislative process and the effective date to issue detailed guidelines to the real estate agency in a timely manner to tie in with the government’s anti-money laundering activities.