Hong Kong Real Estate: Big Brands vs. Small Brands – Who Should You Choose?

What exactly are big and small brands in Hong Kong real estate?
In Hong Kong’s financial and real estate industries, whether it’s securities, insurance, or real estate, one must have a license to work. According to the Hong Kong “Estate Agents Ordinance”, except for exemptions, anyone engaged in the business of real estate agency work in Hong Kong or working as a salesperson for a real estate agency must hold a valid estate agent’s license. “Engaging in real estate agency work without a valid license is a criminal offense, and upon conviction, the maximum penalty is imprisonment for 2 years and a fine of $500,000.”

In Hong Kong, there are two types of individual real estate practitioner licenses: Salesperson’s Licence and Estate Agent’s Licence (individual).

1.Estate Agent’s Licence (individual)

Commonly known as a big license or E-license. Big licenses can be further divided into individual licenses and company licenses, the latter of which will not be discussed here. Individuals holding an Estate Agent’s Licence (individual) or a big license can act as sole proprietors, partners, directors, or managers of real estate agency businesses, independently operate and manage real estate agency work, and also serve as salespersons for selling real estate properties.

2.Salesperson’s Licence

Also known as a small license or S-license. Salesperson’s Licence holders can only engage in real estate agency work as a salesperson of a licensed estate agent, and cannot operate a real estate business as a sole proprietor, partner, or director.

Where can one apply for an individual real estate license? What are the requirements, and how does one apply?

In Hong Kong, the Estate Agents Authority (EAA) is responsible for overseeing the entire real estate industry. The EAA is committed to regulating the practice of Hong Kong’s real estate agency industry, enhancing the professional competence of practitioners, and setting high ethical and conduct standards for the industry.

The Estate Agents Ordinance (Chapter 511) regulates companies and individuals engaged in real estate agency work, and the EAA is authorized to regulate and control the practice of estate agents and salespersons. Processing license applications is one of its functions.

Applicants for an Estate Agent’s Licence (individual) or Salesperson’s Licence must meet the following requirements to be granted a license:

1.Be at least 18 years old;

2.Complete Grade 5 of secondary school or an equivalent level of education;

3.Obtain a passing grade in the relevant qualification exam within 12 months before the date of the license application; and

4.Be considered a suitable candidate for a license by the regulatory authority.

How do I apply for a license?

The license application process is as follows: The applicant submits the completed and signed license application form and related fees to the Estate Agents Authority (EAA) → The EAA reviews the application → Once approved, the license is granted.

How to submit an application?

There are two ways to submit an application:

(1) By mail, in person, or through an authorized representative

Applicants can mail, personally submit, or authorize a representative to submit the completed and signed license application form and related fees to the EAA. Applicants who wish to submit their applications in person or through an authorized representative at the EAA office need to make an appointment through the online booking system.

(2) Online application (applicable only for individual licenses)

All licensed or former licensed individuals who have registered for an e-Service account can submit their license applications online through the “e-Service.”

How can I find out if a license holder has a valid license?

To check whether an individual license holder currently has a valid license and the details of the license, you can search the license directory of the Estate Agents Authority (EAA).

In addition, individual license holders are issued an Estate Agent’s Card to help the public identify their status. The card contains the licensee’s name, type of license, license number, and expiration date, as well as the licensee’s photo.

Wearing an agent’s card while working outdoors allows consumers to immediately identify the identity of licensed practitioners, promoting professionalism. Practice Circular 10-02 requires practitioners working on first-hand property transactions to wear their Estate Agent’s Card.

Please note that the agent’s card does not replace the relevant license.

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