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Renting Property
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Dealing with real estate agents
If you are looking to rent an apartment, the help of an estate agent can be invaluable. Read on to understand the pros, cons and costs.
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1. Can I enter into a tenancy with the landlord directly without using a real estate agent?
If you have found a suitable property without the help of a real estate agent and you are familiar with the renting procedures yourself, it is possible to conduct a tenancy directly with the landlord. However, if you are not using a real estate agent, you are strongly advised to employ a solicitor. Before you sign anything and part with your money, you will at least want your agent or solicitor to advise you on whether there is anything in the title of the property that you should be aware of and whether there are any restrictions on the use of the property concerned. |
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2. If I use a real estate agent, what should I expect?
Legally, your real estate agent should introduce the properties to you, help you in negotiation and once you have found a suitable property, help you enter into a legally binding tenancy agreement. His performance is governed by the Estate Agents Ordinance and he owes you due care and diligence.
Besides the legal requirements, many responsible agents will also provide their clients with a range of useful after-sales service before moving in and during your tenancy term.
If possible, check the track record of the agent you are dealing with. If he is as good as he claims he ought to have no problem in giving you recent references that you can check with. |
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3. What is the estate agency agreement and should I sign it with the agent?
Since the government started to regulate the real estate agency trade, the Estate Agents Authority has standardised the estate agency agreement. This agreement establishes the agency-client relationship and clearly specifies the responsibilities of each party. For example, under this agreement, if the agent introduces a property to the client, he must disclose any interest he, his family or his company has in this property and cannot take secret profit on the transaction. For each property he introduces, upon your request he has to provide you with information on the property as prescribed by the government and be held responsible for that disclosure.
By signing the agreement, you agree to pay the agent commission if you rent any of the properties listed in the agreement during the validity period of the agreement. If you have chosen to work with an agent (at least for the properties he introduces you to), you should sign the agreement for better mutual protection. |
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4. Is there a standard fee charged by real estate agents?
The law does not dictate the commission a real estate agent can charge a tenant. However over the last 20 years or so, the standard industry commission has been half a month's rental from the tenant and half to up to one month’s rental from the landlord. |
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5. Can I use more than one agent?
You can use as many agents as you like. However, you should not employ more than one agent to serve you on any one single property as you may end up having to pay commission to more than one agent if you rent that property. |
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