The user of properties

In Hong Kong, many buildings are generally termed "commercial and residential". However, the user restriction of each unit within a building is clearly defined in either the Occupation Permit or the Deed of Mutual Covenant, and to breach such restrictions may engender grave results. It is also a basic responsibility of the estate agent to find out the user restriction on the property for which he is agent, and to advise the client as appropriate. In this case, an estate agent was chastised for failing to do so.

A tenant was looking for a unit in Mongkok where he would set up his office. The estate agent that he engaged showed him a unit which was being used by the landlord as an office. The tenant also observed that the other units on the same floor were all being used as offices. Since all the other terms were agreeable the tenant signed the tenancy agreement in which the property was designated "commercial and residential".

The landlord soon found out that the unit was for residential use only and informed the tenant accordingly. Having taken legal opinion the tenant decided to cancel the tenancy agreement. However, owing to the estate agent's failure to provide accurate and comprehensive information about the property, the tenant wasted time and money, and a complaint was accordingly lodged with EAA.

The Disciplinary Committee, having carefully reviewed all evidence, held that the estate agent had failed to explain the user restriction of the property to the tenant and a letter of warning was served on the agent as a result.