Estate agent commission and what an agent must tell you

Estate agent commission in Hong Kong is a fee you pay for the agent’s services, but it is not set by law. The actual amount is a matter of market practice and must be agreed in writing before you sign any sale-and-purchase agreement. Commission is customarily around 1% of the purchase price per side—meaning the buyer pays roughly 1% and the seller pays roughly 1%—but every figure is negotiable. You and the agent must record the agreed percentage or fixed sum in the Estate Agency Agreement before you commit to a deal. If an agent tries to demand a different rate after you have signed, you can rely on the written agreement.

Who pays commission and when

In a typical Hong Kong residential transaction, both the buyer and the seller each pay commission to their own agent. If one agent represents both sides (dual agency, explained below), that agent may collect commission from both parties, but only with the informed consent of each. The exact split—and who pays what to whom—must be set out in the Estate Agency Agreement.

Commission becomes payable only when the sale is completed, not when you sign the preliminary agreement (the “temporary” or “provisional” sale-and-purchase agreement). The standard condition is that the fee is due upon completion of the formal Sale and Purchase Agreement (SPA) and the transfer of the property. Agents sometimes ask for a deposit towards commission earlier; you are not obliged to pay the full amount until completion. Confirm the trigger point in your written agreement—if it says “upon signing the preliminary agreement”, you should negotiate to change it to “upon completion”.

The Estate Agency Agreement (Form 3, 4, and 5)

The Estate Agents Authority (EAA) prescribes three standard forms of Estate Agency Agreement for residential property. Which one you sign depends on whether you are buying or selling and whether the agent is acting for you alone or for both sides.

Form 3 – Agreement for Sale/Purchase of a Residential Property (Exclusive)

Use this when you appoint one agent on an exclusive basis to find a buyer (if you are the seller) or to find a property for you (if you are the buyer). An exclusive agreement means you cannot use another agent for the same property or property type during the agreement period. In return, the agent typically commits to a higher standard of service.

Form 4 – Agreement for Sale/Purchase of a Residential Property (Non-Exclusive)

Use this when you appoint an agent on a non-exclusive basis. You may instruct multiple agents simultaneously, and you pay commission only to the agent who introduces the party you eventually deal with. Most buyers sign Form 4 because it keeps their options open.

Form 5 – Agreement for Sale/Purchase of a Residential Property (By the Vendor)

This is the seller’s equivalent of Form 3. It is used when a seller gives one agent exclusive rights to sell the property. The form requires the agent to disclose any prior interest in the property and any known defects.

What the agreement must always contain: the commission amount or percentage, the trigger for payment, the term of the agreement, and a clear statement of whether the agent is acting for you, the other party, or both.

Dual agency and the conflict of interest

Dual agency occurs when one agent (or the same agency) represents both the buyer and the seller in the same transaction. This creates an inherent conflict: the agent owes duties of loyalty and confidentiality to both sides, which is impossible to fulfil fully. The agent cannot, for example, tell the seller the maximum price you are willing to pay, nor can it tell you the seller’s lowest acceptable price.

In Hong Kong, dual agency is legal but only with the informed written consent of both parties. The agent must explain the conflict to you before you sign the Estate Agency Agreement, and you must sign a separate disclosure form acknowledging that you understand the situation. If you are uncomfortable with dual agency, you can insist that the agent acts only for you (a single agency arrangement) and that a different agent from the same firm represents the other side.

What an agent must tell you – statutory duties

An estate agent in Hong Kong is not just a middleman. When you pay commission, the agent owes you several duties under the Estate Agents Authority (EAA) rules and the Estate Agents Practice (General Duties and Requirements) Regulations. These include:

• Hold a valid EAA licence. Every person who works as an estate agent or salesperson must hold an individual licence. The company or partnership must also hold a valid licence. You can check a licence online (see below).
• Provide the Property Information Form. For a residential property, the agent must give you a completed Property Information Form (also called the “Form 2” or “property detail sheet”) before you make an offer. This form must include: the property’s saleable area (as defined by the Rating and Valuation Department), its permissible use (e.g., “residential” or “commercial”), the age of the building, the lot number, and any known encumbrances (such as a mortgage or a government lease restriction).
• Disclose known defects. The agent must tell you about any material defects they are aware of, such as unauthorised structures, water seepage, structural problems, or title issues. They must also tell you if the property is subject to a “minor works” order or a building order from the Buildings Department. If the agent does not know of a defect, they must still ask the seller and pass on the answer.
• Disclose their own interest. If the agent, or a close relative, has a financial interest in the property (e.g., they own it, or they are related to the seller), they must disclose this in writing before you make an offer.
• Explain the terms of the agreement. The agent must go through the Estate Agency Agreement with you and ensure you understand your obligations, including the commission and the cooling-off period (if any).

How to check an agent’s licence

You can verify an agent’s or salesperson’s licence online at the Estate Agents Authority’s website (www.eaa.org.hk). Go to the “Licensing Search” section and enter the individual’s name or licence number. The search will show whether the licence is current, the category (estate agent or salesperson), and whether there are any past disciplinary actions. You should check this before you sign any agreement. If the agent refuses to give you their licence number, do not proceed.

How to complain to the Estate Agents Authority

If you believe an agent has breached its duties—for example, by misrepresenting a property, failing to disclose defects, collecting commission without a valid licence, or failing to use the prescribed forms—you can lodge a complaint with the Estate Agents Authority.

• Online: Use the complaint form on the EAA website.
• By post or in person: Send a signed, written complaint with supporting documents to the EAA’s office.
• Time limit: The EAA recommends you complain within two years of the incident, but the sooner the better.

The EAA can investigate and, if it finds a breach, impose sanctions ranging from a warning to revoking the agent’s licence. It cannot, however, order the agent to refund your commission—that is a civil matter you would need to pursue through the Small Claims Tribunal or the District Court.

What to do next

Before you commit to any property, confirm the exact commission figure in writing on the correct Form 3, 4, or 5. Verify the agent’s licence online. Ask the agent for the Property Information Form and read it carefully for any defects or restrictions. If you are the buyer and the agent wants to act for both sides, insist on a written explanation and consider whether you are comfortable with the conflict. If anything feels wrong, do not sign—consult a solicitor who specialises in property transactions.