Case studies: leasing

Leasing cases mix the estate agency rules (Forms 2, 5 and 6, client money, advertising) with tenancy law (stamp duty, Form CR109, forfeiture) and, increasingly, the subdivided-unit and Basic Housing Units regimes. Most marks go to candidates who first identify what kind of letting it is.

Part II · Land search & case studies3 min read5 sections

Checked against the Landlord and Tenant (Consolidation) Ordinance (Cap. 7), Parts IV, IVA and V; Basic Housing Units Ordinance (Cap. 658); Stamp Duty Ordinance (Cap. 117) and IRD IRSD123 (5/2026); Practice Regulation (Cap. 511C), sections 2, 3, 6 and 12 and Forms 2, 5 and 6; EAA Practice Circulars Nos. 15-04, 22-01 and 26-01 (CR); checked 11 Oct 2026.

Must-know for the exam

Forms 5 (landlord) and 6 (tenant) apply to residential lettings of self-contained units; a room sharing kitchen or bathroom needs no prescribed form (Cap. 511C ss.2, 3).
Lease stamp duty (IRSD123, 5/2026): up to 1 year 0.25% of total rent; over 1 to 3 years 0.5% of yearly rent; over 3 years 1%; deposits not counted.
Tenancy agreements are stamped within 30 days of execution; an unstamped agreement cannot be used in civil proceedings until stamped.
Form CR109 is lodged within 1 month of a domestic letting; without it the landlord cannot sue for rent (Cap. 7 s.119L).
Part IVA (subdivided units, from 22 Jan 2022): 2+2-year tenure, deposit at most 2 months' rent, landlord pays the stamp duty and files Form AR2 within 60 days.
Second-term rent rise under Part IVA: the lower of the RVD rental index change and 10%.
Basic Housing Units Ordinance (Cap. 658) in force 1 Mar 2026; letting an unrecognised SDU is an offence from 1 Mar 2027 (transitional rules apply).
Never let parties sign a provisional tenancy agreement with essential terms blank (Circular 15-04 (CR)).
A letting by a mortgagor without the bank's consent gives only a tenancy by estoppel, which fails against the bank.

On this page · 5 sections

Traps that cost marks

Treating the 7 working days as a fixed grace period and forgetting that advertising first brings the deadline forward.
Thinking an oral 'go ahead' from the landlord is enough consent to advertise.
Assuming an exclusive landlord's agent cannot act for the tenant at all, instead of acting with written disclosure.
Forgetting that the timing for the landlord is the landlord's choice between two points.
Adding the rental deposit to the rent when working out lease stamp duty.
Applying the landlord-side 7-working-day rule to a tenant client.
Treating the 3-month recommendation in Form 6 as a statutory maximum.
Thinking dual agency excuses the agent from supplying a Leasing Information Form.

Why this matters in the exam

Part VI of the SQE syllabus (leasing and tenancy) is tested at 'basic knowledge plus use in practice', so Part II cases expect you to calculate stamp duty, spot a missing consent, and know which statutory form applies. The same facts often hide a subdivided unit, which changes almost every answer.

Start each case by classifying the letting: whole flat or room, self-contained or not, domestic or commercial, subdivided unit or not, mortgaged or not.

Classify the letting first

Type of letting	Prescribed estate agency forms?	Key tenancy rules
Whole self-contained flat (domestic)	Yes: Form 5 / Form 6, Form 2	Common law terms; Part IV implied covenants; CR109; stamp duty
Room sharing kitchen or bathroom	No (not self-contained)	Licence or tenancy; land search duty still applies
Subdivided unit let as a home to an individual	Usually yes if self-contained	Part IVA: 2+2 years, rent and charges limits, AR2, landlord pays duty; Cap. 658
Shop, office, industrial unit	No (non-residential)	Part V; Circular 17-02 on floor area; key money duty 4.25%

Sources: Practice Regulation (Cap. 511C) ss.2 and 3; Cap. 7 Parts IV, IVA, V; Cap. 658; as at Oct 2026

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