| The Freshman |
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| To carry out agency work on the internet, one must be licensed and abide by the Regulations |
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 Estate agencies have made increasing use of the internet in their operations. While the Estate Agents Ordinance regulates individuals and companies who are engaged in estate agency work, there are no express provisions as to the medium in which such work is carried out. An estate agent who introduces vendors or purchasers, landlords or tenants to his clients must be licensed, or he will be guilty of an offence. It follows that carrying out estate agency work on the internet is also regulated by the Ordinance.
David was employed in a computer company and had to work long and irregular hours. He decided to rent a flat near his office so as to save on commuting time. He chose to look for a flat through the internet, as it would be time saving, convenient and in keeping with the trend of the day. He found a website which listed many flats in the area. The website also indicated that purchasers and tenants would not have to pay commission. After finding a suitable flat on that website, David contacted the agent by e-mail for an inspection appointment. When they met, David asked the agent to show his licence. The agent said he did not have it with him, and David was too polite to insist. While they were viewing the flat, there was nobody else inside. The agent said the landlord was an old client of his and trusted him, so he could take any prospective tenant to look at the flat. David found the flat quite satisfactory and expressed his wish to discuss the details with the landlord. The next day, the agent arranged for David to meet a man, who claimed to be the landlord, in a restaurant. After discussion, the two parties signed a lease, with David paying the rent and a deposit.
A week later, David called the agent but no one answered. He browsed through the internet but the website had disappeared. He could neither contact the agent nor the landlord. He grew suspicious and reported the incident to the police. It was later discovered that neither the firm nor the agent was licensed, nor was the "landlord" the real owner of the flat. The case is still under investigation, but it appears that David's chance of recovering the rent and the deposit is slim.
Although information on property listings could be obtained quickly on the internet, David should have verified whether the agent held a valid licence before instructing him. He should check the property information to be provided by the agent at the same time as he inspected the flat so as to establish the identity of the landlord. Had he taken such precaution, he would have been protected from the swindle.
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