Case studies: second-hand sales

Many SQE Part II scenarios follow one second-hand flat from listing to completion. The questions test whether you can apply the prescribed forms, the Practice Regulation, deposit handling, commission and stamp duty to one set of facts without losing track of who acts for whom.

Part II · Land search & case studies4 min read6 sections

Checked against the Estate Agents Ordinance (Cap. 511), sections 36, 43 and 45; Practice Regulation (Cap. 511C), sections 5, 6, 9 to 13 and Forms 1, 3 and 4; EAA Practice Circulars Nos. 05-07, 13-03, 13-06, 16-03, 18-02 and 24-01 (CR); IRD Stamp Duty Rates Table IRSD123 (5/2026); checked 11 Oct 2026.

Must-know for the exam

Vendor side: sign Form 3 within 7 working days of accepting instructions, or before advertising, or before the provisional agreement, whichever is earliest (Practice Regulation s.6).
Purchaser side: sign Form 4 before arranging an inspection or before the provisional agreement, whichever is earlier (s.6).
No prescribed agreement, or an unlicensed agent at signing: no right of action for commission (EAO s.45).
Pass on every offer as soon as practicable until the provisional agreement is signed; then stop marketing (ss.11 and 13).
A salesperson pays client money forthwith to the employer or its trust account (EAO s.43).
Do a land search immediately before the provisional agreement and give the purchaser a copy (s.13; Circular 13-03 (CR)).
Never let clients sign a provisional agreement with the price, deposit or completion date blank (Circular 13-06 (CR)).
Dual agency must be disclosed, with the commission from the other side in writing as soon as practicable (Forms 3 and 4).
Stamp duty: HK$100 up to HK$4,000,000 (from 26 Feb 2025); BSD, NRSD and SSD do not apply to instruments executed on or after 28 Feb 2024.

On this page · 6 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 a price below the vendor's instruction is harmless because it can only help the sale.
Assuming the licence number only matters when the estate agency agreement is signed.
Applying the 7-day period to an agreement that was signed in front of the agent.
Believing any sale during the Validity Period earns commission, whatever the type of agency.
Using the vendor-side 7-working-day rule, or treating the viewing date rather than the arranging of it as the deadline.
Turning the recommended 3-month Validity Period into a legal maximum.
Thinking a purchase in the spouse's name, or through another agent, escapes the Form 4.

Why this matters in the exam

A sale case packs ten or so rules into one story: a listing, an advertisement, viewings, competing offers, a provisional agreement, a deposit and a commission bill. Each question usually turns on one fact in the scenario, and the wrong options are the right rule applied at the wrong stage or to the wrong party. Working through the deal in time order is the quickest way to answer.

Part II needs 12 of 20 marks on its own (EAA Handbook, Aug 2026), so a structured approach to sale cases is worth more than memorising extra trivia.

Walk the deal in time order

Stage	What the agent must do	Source
First contact	Tell the client you are licensed and give your licence number	Practice Regulation s.5
Taking the listing	Sign Form 3 by the earliest trigger; explain it if the client has no lawyer; record the vendor's ID	s.6; Circular 16-03 (CR)
Property information	Complete Form 1 Part 1 from prescribed sources; invite the Vendor's Statement	s.3; Form 1
Advertising	Vendor's written consent; price as instructed; Property Number and Advertisement Date	s.9; Circular 18-02 (CR)

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