Rent Couple tricked over check

A property agency and a tenant have been scammed by a man who worked as an agent and disappeared after getting a check from the customer in North Point.

The Standard was told that the tenant, a couple who are mainlanders and have been working in Hong Kong, wanted to move from the New Territories to North Point.

The agent showed them a 280-square-foot apartment and said the landlord asked for a monthly rent of HK$10,000, which is lower than market price and offered three weeks rent free, compared to the normal one to two weeks.

The apartment which they viewed was actually not intended for rent.

The clients gave a check for HK$30,000 as a deposit, one month's rent in advance and a month's rent as commission to the agent without filling in the check payable part. The agent then disappeared and the boss of the agency couldn't contact him.

The Standard learned that the agency compensated the customer with HK$30,000 and helped him rent another flat in the same building for a monthly rent of HK$13,000.

The victims did not report to the police, but an industry insider said they should do so as this could be a criminal offense and the agent would have his license revoked.

An agent specializing in second-hand property leasing advised tenants to ask the agent to provide a copy of the land search of the residential unit. Should the agent fail to do so, he would be reprimanded and fined HK$3,000, under the Estate Agents Authority.

He added that the tenant should directly give the deposit to the landlord upon signing the contract. If the tenant wants to pay by check, he should ensure that the payee is the landlord's name in a crossed check.

The agent is required to issue a written receipt to a client immediately after receiving money and commission and copies of the receipts have to be kept for not less than three years, under the Estate Agents Practice regulation. Violations could be subject to a fine and agents suspended or disqualified for holding a license on conviction.

The tenant should also be aware of offers that appear too good to be true. If the rent appears to be a bargain, he suggests tenant conducting additional research, such as comparing rental prices for similar properties in the same district.

The EAA received 380 complaints in the year ended March 31, up 42 percent from a year ago.

A total of 252 licensees or former licensees faced action last year. Most were reprimands or fines, while 36 had their licenses revoked, the watchdog said, without stating what kind of misconduct they committed.