Step 5: Set out promises of incentives in writing
In addition to the various incentives offered by vendors to purchasers, some estate agents may provide commission rebates or other incentives to attract prospective purchasers.
According to the Practice Circular (No. 13-04 (CR)) issued by the EAA, if the incentives are offered by the estate agents, they must set out in writing any promise of incentives, including any gifts, discounts or rebates they have offered to prospective purchasers, and stipulate clearly the terms and format of the incentives. Verbal promises alone are not acceptable.
Estate agency companies are required to issue clear internal guidelines regarding the provision of incentives to prospective purchasers, maintain close supervision of their staff to ensure adherence to the guidelines, and establish proper procedures to fulfill the incentives offered.