Hong Kong Regulations

ESTATE AGENTS PRACTICE (GENERAL DUTIES AND HONG KONG RESIDENTIAL PROPERTIES) REGULATION - SECT 12

Keeping of accounts and records

(Past version on 01/11/1999).

(1) (a) A licensed estate agent shall keep proper accounts as to moneys
received or held, or paid by the agent, for or on account of clients.

   (b)  Any officer of the Authority authorized in writing by the Authority
        for the purpose shall have the right to inspect the accounts kept
        under paragraph (a) at any time during ordinary office hours without
        prior notice.

   (c)  A licensee shall answer any question and supply any information
        requested by any officer of the Authority in relation to an inspection
        under paragraph (b).

(2) A licensed estate agent shall-

   (a)  issue a written receipt to a client immediately for any moneys
        received; and

   (b)  retain a copy of the receipt for not less than 3 years after it is
        issued.

(3) A licensed estate agent shall deposit all moneys received or held for or
on account of a client in a trust account maintained at an
authorized institution.

(4) A licensed estate agent shall retain a copy of the deposit slip of any
moneys deposited into a trust account maintained under subsection

(3) for not less than 3 years after the deposit was made.

(5) A licensed estate agent shall not withdraw money from a trust account
maintained under subsection (3) except-

   (a)  in accordance with his client's instructions; and

   (b)  by a cheque or by electronic funds transfer.

(6) A licensed estate agent who has neither received nor held money for or on
account of a client during any financial year of the agent shall send to the
Authority a statutory declaration to that effect-

   (a)  if required to do so by the Authority; and

   (b)  within such period as is specified by the Authority.

(7) (a) A licensed estate agent shall only release deposit money in relation
to the sale and purchase or lease of a residential  property in accordance
with-

        (i)    the terms of the agreement for sale and purchase or lease
               concerned; or

        (ii)   the purchaser's instructions.

   (b)  A licensed estate agent shall ensure that the identity of the vendor
        and of the owner of the residential property concerned are the same
        or, if they are different, that the vendor has authority to sell the
        property, before releasing any money under paragraph (a).

   (c)  A licensed estate agent shall return a purchaser's cheque or deposit
        money to the purchaser as soon as is practicable if the purchaser's
        offer to purchase or lease the residential property concerned is not
        accepted by the vendor.

(8) A licensed estate agent shall furnish to the Authority if required to do
so by the Authority a certificate issued by a certified public accountant
(practising) as to whether or not subsection (1) has been complied with by the
agent. (Amended 23 of 2004 s. 56)