Case studies: first-hand sales

First-sale cases test the Residential Properties (First-hand Sales) Ordinance (Cap. 621) and the EAA's first-sale circulars from the salesperson's side of the sales office: what you may say, what documents must exist and when, and what happens after a preliminary agreement is signed.

Part II · Land search & case studies3 min read5 sections

Checked against the Residential Properties (First-hand Sales) Ordinance (Cap. 621), sections 8, 25, 30 to 35, 42, 47, 52, 53, 58 to 61, 70 to 78 and 89; SRPA pamphlet and panels; EAA Practice Circulars Nos. 13-04, 18-03 and 24-01 (CR); checked 11 Oct 2026.

Must-know for the exam

Sales brochure available at least 7 days before the date of sale; price list at least 3 days; sales arrangements published at least 3 days before (ss.25, 32, 47).
Saleable area is the only basis for area and price per square foot; it includes balcony, utility platform and verandah, not bay windows or flat roofs (s.8).
Preliminary deposit 5%; purchaser signs the ASP within 5 working days or the PASP ends and the 5% is forfeited with no further claim; owner signs within 8 working days (ss.52, 53).
Under Cap. 621, Saturdays are not working days.
Register of transactions: PASP within 24 hours, ASP within 1 working day (ss.58 to 61).
No general expression of intent before the price list; no specific unit reserved before the date of sale (s.34).
Quote transaction data only from the register of transactions, with a time frame (Circular 13-04 (CR)).
Agents must not lend money to buyers, take deposits without the vendor's authority, or give mortgage assurances (Circular 13-04 (CR)).
Fraudulent or reckless misrepresentation and spreading false information are offences: up to HK$5,000,000 and 7 years (ss.76, 78).

On this page · 5 sections

Traps that cost marks

Counting working days, or borrowing the 3-day price-list period, instead of 7 days immediately before the date of sale.
Using 50 as the minimum for every first price list, without checking whether 20% of the flats is larger.
Thinking a refundable deposit, or not naming a flat, makes a pre-price-list ‘priority list’ acceptable.
Believing that once the price list is out, a buyer may reserve a named flat as long as no money changes hands.
Assuming staff deployment details belong in the vendor’s sales arrangements rather than in the agency’s filing with the EAA.
Adding the bay window to the saleable area because it is enclosed and usable.
Dividing the price by an inflated ‘practical’ or ‘gross’ area, which makes the flat look cheaper per square foot.
Thinking any mention of a bay window or flat roof is banned, when the rule is about how size and unit price are calculated.

Why this matters in the exam

First-sale cases look different from resale cases: the vendor is a developer, prices come from price lists, and the timetable is set by statute. The questions reward knowing the periods exactly and spotting conduct the EAA has banned at sales offices.

Many periods differ by only a few days (7, 5, 3; 24 hours or 1 working day), so build the timeline from the scenario's dates before reading the options.

The statutory timeline

Event	Rule	Section
Sales brochure	At least 7 days before the date of sale; printed or revised within the previous 3 months	s.25
Price list	At least 3 days before; minimum numbers by development size	ss.30, 32
Sales arrangements	Published at least 3 days before the date of sale	s.47
Price change	Revise the price list; sell at the new price only after 3 days	ss.29, 32, 35
PASP	5% preliminary deposit	s.52

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