SQE Part II: Land Searches and Case Studies

Part II of the SQE is 10 questions on one or two land searches and/or case studies, worth 20 marks. You need 12 of them, so 6 correct answers. In the EAQE, Part II is 20 questions on one or two case studies, and you need 24 of 40 marks. The extract does most of the work: read it properly and many answers can be checked against it line by line. This guide shows you how a Hong Kong land search is laid out, what each entry means for a sale, and how to work through a case, with an original practice extract.

What a land search is

Hong Kong runs a deeds registration system under the Land Registration Ordinance (Cap. 128). Deeds and other instruments affecting land are registered at the Land Registry by memorial, and each gets a memorial number. Registration gives notice and priority. It does not guarantee title. A land search is a copy of the computerised land register for one property. In the exam, “land search” means the Land Registry land register (Examination Handbook, August 2026, Appendix 3, Note 2).

Agents must use land searches at three points. When acting for a vendor or landlord, the agent needs the prescribed information in Form 1 or Form 2, including owner and incumbrance details, from the start of the agency, and a copy of the land search is attached to Form 1 (Circular No. 13-02 (CR)). Immediately before an agreement for sale and purchase or a tenancy agreement is signed, the vendor’s or landlord’s agent must carry out a land search and give a copy to the purchaser or tenant (Practice Regulation, Cap. 511C, section 13; Circular No. 13-03 (CR), effective 1 April 2013).

The four sections of the register

Reading the owner entries

• Joint tenants: all co-owners own the whole together. On a death the survivors take by survivorship. All must sign the provisional agreement, the agreement and the assignment.
• Tenants in common: each owns a distinct but undivided share, which passes under a will or intestacy. All must sign.
• Personal representatives: an executor (probate) or administrator (letters of administration) sells in that capacity, and all of them must join in.
• Deed of gift: a gift can be set aside by the trustee in bankruptcy if a bankruptcy order is made against the donor within 5 years. Recommend legal advice.

“Date of Instrument” is when the document was signed or issued. “Date of Registration” is when it was lodged at the Land Registry. Examiners often test the difference.

Priority rules you can be asked about

• Registered instruments rank by date of registration (Cap. 128, section 3).
• An instrument registered within one month of its execution takes priority from the date of execution (section 5).
• Charging orders and lis pendens (a notice of a pending court action claiming an interest in the land) take priority from the day after registration (section 5A).
• An unregistered registrable instrument is void against a later bona fide purchaser or mortgagee for value, except a bona fide lease at rack rent for 3 years or less.

Priority detail is listed in the syllabus as EAQE content. The SQE covers registrable instruments, not priority.

A method for Part II

• Read the questions first, quickly, so you know what to look for.
• Mark the search in the question book: circle every owner and their capacity, tick routine incumbrances, star anything unusual.
• Check dates and names against the case facts. Wrong person, wrong date, missing co-owner and an undischarged mortgage are the four most common hooks.
• Answer from the documents and the rule, not from what usually happens in practice.
• Budget time: in the SQE, allow about 30 to 35 minutes for Part II. In the EAQE, allow about 90 minutes for 20 questions.

Worked practice extract

Question 1

Who must sign the provisional agreement for sale and purchase as vendor?

(A) Mr Chan alone, as the person instructing the agent. (B) Mr Chan alone, because tenants in common may each sell the whole property. (C) Both Mr Chan and Ms Chan, or someone properly authorised by Ms Chan. (D) Ms Chan alone, because the charging order prevents Mr Chan from signing.

Question 2

Which entries would a purchaser normally expect to remain on the register after completion?

(i) the occupation permit; (ii) the DMC; (iii) the mortgage to Victoria Pearl Bank; (iv) the charging order. (A) (i) and (ii) only. (B) (i), (ii) and (iii) only. (C) (ii) and (iv) only. (D) All of them.

Question 3

What must Ben do about the building order?

(A) Nothing, because orders are the vendor’s private matter. (B) Disclose it only if Ms Wong asks. (C) State it in Form 1 as a subsisting building order, give Ms Wong a copy of a land search made immediately before she signs, and recommend legal advice. (D) Remove it from the land search copy to avoid alarming the buyer.

Common traps

• Old search: a search from the listing date is not enough at signing. Search again immediately before the agreement.
• Release missing: a mortgage with no registered release is still subsisting, even if the vendor says it is paid off.
• Name mismatch: the person instructing you is not on the register. Verify identity against the search and record the ID number (Circular No. 16-03 (CR)).
• Deeds pending registration: never treat this section as harmless. Recommend legal advice.
• Lease term: a non-renewable Government lease near expiry is a material fact. Many New Territories and New Kowloon leases run to 30 Jun 2047 under Cap. 150, and from 5 Jul 2024 the Extension of Government Leases Ordinance (Cap. 648) provides for 50-year extensions of eligible leases by Gazette notice.

Practise with full Part II cases in our SQE practice and EAQE practice, or try the free mock. The forms behind these questions are in Form 1 and Form 2. Sources: Cap. 128, Circular No. 13-03 (CR), and the EAA Study Guide, Part 4.