(Some agents are breaking the law - Pocketing incentives that belong to Buyers):
Tempted by tasty commissions
Karen Chiu / March 21, 2013 / The Standard
Unscrupulous real estate agents could be breaking the law by pocketing the full amount of price reductions being offered by motivated developers eager to unload their unsold flats rather than sharing the discounts with purchasers.
The Standard has learned that mouth- watering sales commissions earned at one project came as a result of agents hoarding the apartment price discount the developer had intended for the homebuyers - who were kept in the dark about the reductions.
Veteran property experts said this breaches the law that requires sales agents to make full disclosure of interests in the property concerned to their clients.
Lawrence Poon Wing-cheung, housing policy panel chairman at the Hong Kong Institute of Surveyors, said pocketing homebuyers' discounts definitely violates the law. He added this reflects the loopholes of law enforcement by the regulatory bodies in the territory.
. . .
To clear inventory amid the government's continuing curbs, developers have been boosting commissions and offering other perks.
Tai Hung Fai Enterprise, a street shop investor selling its first residential project, Kadoorie Lookout in Ho Man Tin, has raised commissions twice in one week. It will now pay a bonus of 1.5 percent for the first 10 homes sold at the 55-unit development, on top of the 4 percent commission.
Also in Ho Man Tin, Easyknit International (1218) for its One Victory project is offering commission of 4.5 percent, HK$120,000 bonus per flat sold and up to HK$500,000 discount on the price.
Meanwhile, Chuang's Consortium International (0367) is dangling up to 6 percent commission at its Parkes Residence, near Austin MTR station.
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