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Determination of Commission Disputes by the Estate Agents Authority

 

A dispute on agency commission between a licensed estate agent and his client may be referred to the Estate Agents Authority for a determination under section 49 of the Estate Agents Ordinance (EAO).  Estate agents and their clients may therefore choose a faster avenue than the court to resolve their disputes. For more details please refer to the Estate Agents (Determination of Commission Disputes) Regulation.

 

Reference of dispute for determination

A dispute may be referred to the Authority for determination if:

  • the dispute is between a licensed estate agent and his client;

  • the dispute relates to the amount of commission or other fee, or the calculation or manner of payment;

  • the parties agree to refer the dispute to the Authority for determination; and

  • an estate agency agreement as prescribed under the EAO has been executed.

Jurisdiction

The amount of the commission or other fee in dispute shall not exceed $300,000.

 

Fees

  • Filing fee: On referral, each party shall pay to the Authority a filing fee of $500. On determination, the filing fee is deductible from the determination fee.

  • Determination fee: A determination fee, being 10% of the total amount of commission and other fee in dispute, subject to a minimum of $2,000 shall be payable to the Authority for providing the service of an adjudicator in determining the dispute.

 

Representation

To simplify the determination procedure and to reduce costs, no party is allowed to have legal representation in the determination proceedings.

 

Determinations of the Authority

A determination by the Authority when registered at the District Court becomes a judgment of the District Court and may be enforced as such accordingly.

 

Who should I talk to if I have questions about the process of determination?

If you have any questions, please contact us at 2111 2777, or fax your enquiry to us at 2119 9022.

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