Before 1997

There were no laws regulating estate agents. Anyone could start an estate agency by simply getting a business registration certificate.

Early 1990s

Many estate agents engaged in unethical and illegal practices, leading to numerous complaints to the Consumer Council. Issues included:

• Representing both buyers and sellers without their consent.
• Not disclosing commissions received from both parties.
• Selling properties without revealing their own interests.
• Providing false information about properties.
• Not protecting clients' interests or following instructions.
• Forcing clients into unfair agreements.
• Offering poor-quality services.

Government Response

• In November 1993, due to growing public concern, the government set up a Working Group to investigate the estate agency trade.
• In August 1994, the Working Group recommended creating a licensing system for estate agents and establishing an independent body, the Authority, to oversee this system. 
• These recommendations were widely supported, leading to the introduction of new laws.
• The Estate Agents Ordinance (EAO) was passed on 21 May 1997, and the Authority was established on 1 November 1997.