Case Studies
Case 1: Solicitation/Acceptance of Illegal Commission from Clients
An estate agent of an estate agency was tasked
to procure sale and purchase transactions of properties, including negotiating
with vendors and purchasers about property prices and agency commissions to the
estate agency. In the sale and purchase
of a property, the estate agent represented both the vendor and purchaser (i.e.
dual agent) and solicited a financial reward from the vendor for negotiating
with the purchaser for a higher property price. The estate agent eventually procured the
property transaction at a higher property price and accepted the financial
reward from the vendor. See More
Case 2: Solicitation of Illegal Commission from Subordinates
A senior manager of an estate agency learned
that an estate agent, who is his subordinate, might procure a property
transaction. He told the estate agent
that he would assist in negotiating the price of the property and solicited
from the estate agent part of the commission payable to the latter by the
estate agency. The estate agent
eventually secured the deal and received commission from the estate agency but did
not accede to the senior manager’s request. See More
Case 3: Diverting Business to Another Estate Agency
A purchaser engaged an estate agent of Estate Agency A to purchase a property. Aware of such potential deal, a proprietor of Estate Agency B requested the estate agent to refer the purchaser to his company. In return, he offered to pay the estate agent a percentage of the commission received as a reward for the business referral if a deal was secured. Estate Agency A did not allow staff to accept any advantage in relation to its business or refer its clients to other estate agencies.
Eventually, the purchaser purchased the property through Estate Agency B and the estate agent received a rebate from Estate Agency B. See More