Procuring illegal letting

A salesperson arranged for a landlord and a prospective tenant to enter into a tenancy agreement for a Private Sector Participation Scheme property, despite the existence of alienation restrictions in respect of the property.

On three different occasions, the salesperson reminded the landlord and the tenant that the property was subject to alienation restrictions and it was illegal to proceed with the proposed letting.

As a result of the letting, the landlord was convicted under Section 27A of the Housing Ordinance and was ordered to pay a heavy fine.

At the inquiry hearing, the salesperson admitted that he had handled the transaction and that he had known that the letting would amount to illegal alienation under the Housing Ordinance. However, he thought that it would be sufficient to remind his clients of the illegality and he did not know that his action would lead to serious consequences.

Having considered the evidence presented by the Authority and the representations made by the salesperson, the Disciplinary Committee found that the salesperson had failed to observe paragraph 3.1.1 of the Code of Ethics as he had failed to refrain from activities during his practice which might infringe the law. The Disciplinary Committee decided that the salesperson's licence be suspended for one month.