An Interview with
Mr Steven Poon, JP, Chairman of the Disciplinary Committee
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Milestone |
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you been able to observe improvements in the professional
standards and quality of service of practitioners
since estate agency became regulated by law? |
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Mr Poon |
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I must say that the professional standards
and quality of service of estate agents have generally
improved since the establishment of the Estate Agents
Authority. Practitioners are daily getting more familiar
with the regulatory legislation and have come to realise
that regulation helps to enhance professionalisation.
As a matter of fact, the overall image of the trade has
also improved considerably.
Since its inception the EAA has received many complaints
against estate agents from citizens, and the number of
these complaints is on the rise. While this reflects problems
in discipline among some practitioners, it more significantly
points to a better understanding of consumer rights and
the functions of the EAA, and the demand for more and
better service from agents, among the general public.
This is all in the community's interest. |
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Milestone |
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What in your opinion is the most serious
disciplinary problem among estate agents? |
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Mr Poon |
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Given the prevalent economic climate, a
large number of properties with negative equities have
emerged in recent years. Some practitioners, for reason
of inexperience, continued to facilitate the transaction
of such properties in the ways of the past. In such cases
the vendor has accepted the deposit, but the property
is nevertheless repossessed by the bank because the vendor
is unable to redeem the mortgage or pay his debts. This
is a situation in which the purchaser is highly susceptible
to damages. However, properties with negative equity are
not so difficult to deal with, as long as prescribed property
information, in particular data related to mortgages and
encumbrances, is properly sought and carefully analysed.
If there is the suspicion that the property may be a negative
equity, then the agent should alert the prospective purchaser
and recommend stakeholding of deposits with lawyers so
as to reduce the client's risk.
Other disciplinary problems arise out of an insufficient
sense of professionalism on the part of the practitioners.
There are those who do not clearly explain the terms of
a contract to the client, there are those who do not know
enough about the sale and purchase of properties such
as flats under the Home Ownership Scheme with re-sale
restrictions, and there are the occasional cases of fighting.
The Disciplinary Committee takes fighting cases very seriously
as these badly tarnish the image of the trade, and often
cause citizens to lose confidence in estate agents. |
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Milestone |
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What are the major considerations of
the Disciplinary Committee in deciding on whether to mete
out penalty to an estate agent? |
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Mr Poon |
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The principal responsibilities of the Disciplinary
Committee are two. One of these is to take disciplinary
action against an estate agent in breach of rules and
regulations, and the other is to help the trade establish
professional standards through inquiry hearings and the
award of sanctions.
In deciding on whether and how to punish an estate agent
who has committed a breach, the Disciplinary Committee
will give full and comprehensive consideration to all
factors concerned. First of all the Committee has to be
satisfied that there is sufficient evidence against the
agent so as to make sure that its ruling is fair and just.
Other factors for consideration include whether anyone
has sustained loss in the case as a result of what the
agent has done, and whether such an act will affect the
reputation of the trade. The disciplinary measures meted
out by the Disciplinary Committee will also serve as a
warning to other practitioners. |
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Milestone |
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Do you think the EAA has been vested
with sufficient disciplinary power under existing legislation?
Are disciplinary actions effective means to warn practitioners
against wrongdoing? |
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Mr Poon |
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The law gives the EAA a series of disciplinary
powers which culminate in the temporary suspension or
even revocation of licences. Now that the licence is essential
to practice, I believe every agent will value the licence
and would not risk it by breaching the regulations. In
this way, the disciplinary powers as defined by law have
functioned well as a deterrent against malpractice.
It is understood that estate agents need time to adapt
to the present mode of regulated practice. Hence the Disciplinary
Committee tended to adopt a tolerant approach in handling
breaches of discipline during the early days of the implementation
of the regulatory legislation : penalties were relatively
lenient and minor offences were often addressed by letters
of advice and warning. However, as the trade's understanding
of the legislation increases and as practitioners have
accustomed to the new practice, I believe that it is necessary
for the rules to be more strictly enforced in due course.
Disciplinary actions are only a means to an end. Our ultimate
objective is that all estate agents will exercise self-discipline
and provide loyal and professional services to their clients. |
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Milestone |
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Some estate agents claim that the EAA
should only take a passive role in enforcing the regulation
and that inspection of trading establishments for possible
acts of non-compliance should be carried out only upon
receipt of complaint. Do you agree with this view? |
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Mr Poon |
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I do not agree with this view. I think
it is essential that the EAA proactively inspects and
monitors agency practice in order to identify cases of
breaches and non-compliance.
Every profession has its own rules and regulations. The
community's esteem for the profession is high when its
members abide by these rules and regulations, when they
have attained a reasonably high level of professional
knowledge, and when they offer quality service. Working
according to the stipulations of the statutes, in point
of fact, is only a basic requirement.
The functions and powers of the EAA have been defined
in the Estate Agents Ordinance and the Authority may not
unilaterally abdicate the execution of such power. The
regulation of estate agency practice is clearly stipulated
in the Ordinance, and the inspections of the EAA serve
more purposes than one. Besides monitoring the practice
of agents to ensure compliance and identifying acts of
non-compliance, officers of the Authority will also answer
questions from practitioners on the spot and play an educational
role by helping them to achieve a better understanding
of the Ordinance.
Furthermore, the routine inspections also serve to protect
trade interests. Through these inspections the EAA was
able, on a number of occasions, to uncover many acts of
practice without licence. The offenders were handed over
to the police and successfully prosecuted in court, and
justice was thus done to those who were properly licensed.
Inspection and penalties are useful means to discourage
illegal practices and would help to create a fair trading
environment for all. |
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