Case studies: sales and conveyancing

Sale cases follow one property from listing to completion and test the forms, information duties, offers, deposits, stamp duty, commission and AML rules against a single set of facts. At EAQE level the property may be a shop or office, the vendor a company, and the agency may act for both sides, so you must know which rules switch off for non-residential property and which apply to everything.

Part II · Land search & case studies6 min read7 sections

Checked against the EAA Examination Handbook (paper-based), August 2026, paras 4.3 and 4.4; Estate Agents Ordinance (Cap. 511), sections 36, 43 and 45; Practice Regulation (Cap. 511C), sections 5, 6 and 8 to 13 and Forms 1, 3 and 4; EAA Practice Circulars Nos. 05-07, 09-06, 13-03, 13-06, 16-03, 17-01, 17-02, 18-02, 23-01 and 24-01 (CR); Stamp Duty Ordinance (Cap. 117) and IRD IRSD123 (5/2026); IRD Stamp Office Interpretation & Practice Notes No. 1; HKMA press release of 16 Oct 2024; checked 11 Oct 2026.

Must-know for the exam

EAQE Part II: 20 questions on one or two case studies, 40 marks; you need 24, plus 36 of 60 in Part I, in the same sitting.
Residential vendor side: sign Form 3 within 7 working days of accepting instructions, or before advertising, or before the sale agreement, whichever is earliest (Cap. 511C, s.6).
No prescribed agreement or no licence at the time: no right to sue for commission on residential property (EAO s.45). Section 45 does not apply to non-residential property.
Non-residential deals: no Forms 1 to 6, but all circulars not marked residential-only apply, including 17-02 on floor area, permitted use and cocklofts.
Record every offer in writing and pass it on promptly, in order, until a sale agreement is signed; then stop marketing (Cap. 511C, ss.11, 13).
Possible negative equity: all deposits held by the vendor's solicitors as stakeholders (Circular 05-07 (CR)). Unproven company signatory: stakehold the purchaser's deposit (Circular 09-06 (CR)).
AVD on residential and non-residential alike: HK$100 up to HK$4,000,000; Scale 3 (non-residential) stops at 4.25%, residential reaches 6.5% over HK$109,574,470 (IRSD123, 5/2026).
Commission refunded within 5 working days of the scheduled completion date if completion fails without the client's fault; still payable on a mutual cancellation (Form 3, Schedule 2).
AML CDD applies to sales: dual agency means both vendor and purchaser are customers (Circular 23-01 (CR)).

On this page · 7 sections

Traps that cost marks

Candidates think the vendor's word is a reasonable source and that a cockloft can be counted once it is mentioned.
Candidates accept a vendor's written assurance as a reason to count an unauthorised cockloft in the floor area.
Candidates treat "shop" on the occupation permit as covering any trade, including a restaurant.
Candidates use the residential 6.5% figure or a neighbouring band instead of the 3.75% band.
Candidates assume the s.45 commission bar and the Form 3 timing rule apply to shops as well as flats.
Candidates apply 4.25% (the old top rate) or 6.5% to the whole price instead of the marginal band.
Candidates think a winding-up petition matters only once a liquidator is appointed.
Candidates count only shares held directly and forget that a vendor client also needs due diligence.

Why this matters in the exam

A sale case packs a dozen rules into one story, and each question usually turns on a single fact: the date instructions were accepted, the moment an offer arrived, who held a cheque, or whether the property is residential. The wrong options are typically the right rule at the wrong stage, or a residential rule applied to a shop.

With 20 linked questions, it pays to build a timeline before answering. Write the dates and events down the margin of the question book (rough work is allowed only there) and answer from it.

First: classify the deal

Question	If yes	If no
Residential property in Hong Kong?	Practice Regulation, Forms 1, 3 and 4, s.45 on commission	Unmarked circulars only (17-01, 17-02); commission depends on the contract
Company vendor or purchaser?	Company search; board resolution or power of attorney; payments to the company, not the signatory	Check identity and record ID number (Circular 16-03 (CR))
Acting for both sides?	Disclose dual agency in writing; disclose commission from each side; CDD on both	Single agency: CDD on your own client
Vendor's mortgage over the price?	Stakeholding of all deposits by solicitors

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