EAA: Non-compliant ads the most common complaint category regarding first-hand residential properties

The number of complaints regarding first-hand residential properties last year has decreased slightly compared to 2021, of which non-compliant ads accounted for the most common category of complaints. 

According to the press statement of The Estate Agents Authority, a total of 273 complaint cases were opened in 2022, a decrease of 18% compared to 2021, of which the cases related to first-hand residential properties also dropped 44% compared to 2021.

Among the most common categories of complaints, issuance of non-compliant advertisements accounted for the most, at 24% of the total complaints, but the number has also decreased by 45% compared to 2021.

The EAA conducted 980 checks at the sale-sites of first-hand residential properties, 729 visits to estate agency shops and 1,203 spot checks on matters relating to anti-money laundering and counter terrorist financing requirements.

The EAA also conducted 1,393 spot checks on online property advertisements, an increase of 31% compared to 2021. During all these inspections and spot checks, a total of 116 non-compliant cases were discovered, a decrease of 29% compared to 2021 and most of them were about non-compliant advertisements.

The EAA took actions or imposed sanctions against a total of 416 licensees or former licensees in 2022. A total of 14 licences were suspended and 41 licences were revoked. 

On the other hand, there were 62 complaint cases concerning non-local properties in 2022, of which 61 cases involved uncompleted non-residential development projects, representing a significant increase compared to 2021 but similar in number to that of 2020.

Simon Siu Chak Yu, chairman of EAA, said that the issue of non-local properties is complex and involves many different stakeholders. “Regulating estate agents cannot solve problems arising from developers or other stakeholders. It is also difficult for the EAA to set up an examination and training system for agents selling non-local properties, in a bid to ensure that they possess the relevant professional knowledge of different jurisdictions,” he said.

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