Intending to sell a vacant flat, Mr Kwok, the owner, went to two nearby estate agencies to have it listed. Mr Kwok gave the key only to A Co, with which he was well-acquainted. The other, B Co, had to contact the owner and make arrangements when a client asked to view the property.
A few days later, an agent from B Co called Mr Kwok with a view to taking a prospective purchaser to inspect the flat, but at the time Mr Kwok had important business to attend to and could not go to the flat to open the door. To avoid missing a deal, that agent called an agent from A Co and asked to borrow the key, adding that he was willing to act as A Co's sub-listing agent and share the commission with A Co. As a result, an agent from A Co lent him the key without the owner's consent.
After viewing the flat, the prospective purchaser was not interested and did not give any further instructions. Two days later, Mr Kwok barged into B Co angrily and said that he learned from the management office of the building that B Co had taken a client to inspect his property and demanded to know how they had obtained the key. The agent told him the truth. Although Mr Kwok did not suffer any loss, he thought that the two agents had conspired behind his back. He therefore lodged a complaint with the Estate Agents Authority.
As the owner, Mr Kwok had control over his property. The agent from B Co had trespassed his property by taking someone into the flat without his consent. A Co's handing the key to a third party and sub-listing the flat with another agent without the consent of the owner are also prohibited acts under the Practice Regulation.
It is explicitly provided in the Practice Regulation that, without the prior consent of the vendor, an estate agent shall not arrange for anyone to inspect the property. It is also provided in the standard documents prescribed by the Authority that the estate agent shall obtain the property owner's consent in writing before handing the key to a third party or to sub-list the property.
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