Leasing and tenancy

Domestic and commercial tenancies under the Landlord and Tenant (Consolidation) Ordinance, the rights and duties of landlord and tenant, how tenancies end and are renewed, stamp duty on leases, Form CR109, and the subdivided-unit rules under Part IVA and the Basic Housing Units Ordinance (Cap. 658). Part 6 of the SQE syllabus is set at Level 3, and leasing is the bread-and-butter work of most new salespersons.

Part I · Stand-alone questions9 min read9 sections

Checked against the Landlord and Tenant (Consolidation) Ordinance (Cap. 7), Parts III to V and IVA (ss.115 to 117, 119L, 119V, 120AA, 120AAZE, 120AAZH, 120AAZL, 120AAZT, 126 and Schedule 7); Landlord and Tenant (Consolidation) (Amendment) Ordinance 2004 (in force 9 Jul 2004); Stamp Duty Ordinance (Cap. 117), s.9 and First Schedule Head 1(2); IRD Stamp Duty Rates Table IRSD123 (5/2026); RVD, A Summary Guide on the Landlord and Tenant (Consolidation) Ordinance (updated 7 Dec 2018); Basic Housing Units Ordinance (Cap. 658, in force 1 Mar 2026); EAA Practice Circulars Nos. 22-01 (CR) (effective 22 Jan 2022) and 26-01 (CR) (effective 1 Mar 2026); EAA, A Study Guide to Estate Agency Law and Practice, Part 7; checked 11 Oct 2026.

Must-know for the exam

Exclusive possession for a term at a rent makes a tenancy, whatever the document is called; a licence is only a personal right to occupy.
Domestic tenancies made on or after 9 Jul 2004 have no statutory security of tenure: they end by their terms, by agreement, or on expiry (Cap. 7, as amended 2004).
Form CR109: the landlord lodges it with the Commissioner of Rating and Valuation within 1 month of a new letting or renewal; until it is endorsed he cannot sue for rent (s.119L).
Part IV implied forfeiture grounds: rent unpaid 15 days after due, illegal or immoral use, unnecessary annoyance, unconsented structural alteration. Part V implies only the rent ground.
Lease stamp duty: up to 1 year, 0.25% of total rent; over 1 to 3 years, 0.5% of yearly rent; over 3 years, 1%. Deposits excluded; stamp within 30 days.
Late stamping: penalty up to 2x the duty (within 1 month late), 4x (1 to 2 months), otherwise 10x. An unstamped lease is not admissible in civil proceedings.
Part IVA SDU regulated tenancies (from 22 Jan 2022): 2 + 2 years' tenure; second-term rise capped at the lower of the index change or 10%; deposit up to 2 months' rent.
Regulated tenancy: landlord bears all stamp duty and files Form AR2 within 60 days; the landlord's agent arranges both unless the landlord opts out in writing (Circular 22-01 (CR)).
Basic Housing Units Ordinance (Cap. 658) in force 1 Mar 2026: registration period to 28 Feb 2027; unauthorised letting an offence from 1 Mar 2027 (HK$300,000 and 3 years).
Harassment or unlawful eviction (s.119V): up to HK$500,000 and 12 months on first conviction, HK$1,000,000 and 3 years on a later one.

On this page · 9 sections

Traps that cost marks

Trusting the label on the document.
Assuming the owner can always enter.
Thinking a landlord can evict on notice of sale.
Believing only physical eviction by the owner counts, when cutting services or acting through others is also caught.
Treating the stated user as conclusive.
Remembering the 5-year figure but forgetting the conditions that come with it.
Applying pre-2004 notice rules to a new tenancy.
Swapping the landlord's 12-month and the tenant's 1-month TTN periods.

Why this matters in the exam

Leasing questions mix law and practice: is this a tenancy or a licence, which Part of Cap. 7 applies, what stamp duty is due, when the landlord can forfeit, and what the agent must do for a subdivided unit. Stamp duty on a lease is a favourite hand calculation. The subdivided-unit rules changed on 1 Mar 2026, so expect questions on Circular 26-01 (CR).

Your own paperwork sits alongside: Form 2 (Leasing Information Form), Form 5 (agent and landlord) and Form 6 (agent and tenant) under the Practice Regulation. No prescribed form is needed when leasing a unit that is not self-contained (Cap. 511C, s.6).

Kinds of occupation

•Tenancy: exclusive possession for a term at a rent; an interest in land. The label on the document does not decide it.
•Licence: a personal permission to occupy without exclusive possession; no interest in land.
•Fixed term: ends on its expiry date. Periodic (for example monthly): runs until a notice to quit of one full period.
•At will: arises by law, for example when a tenant holds over with consent; at sufferance: holding over without consent or objection. Accepting rent after expiry can create a periodic tenancy.
•By estoppel: a landlord who lets a mortgaged flat without the bank's required consent cannot deny the tenancy, but the bank can treat the tenant as a trespasser (Typhoon 8 Research Ltd v Seapower Resources International Ltd [2001]).

Formalities. An oral lease is valid for 3 years or less, at the best rent and without a premium (Conveyancing and Property Ordinance, Cap. 219, s.6). A bona fide lease at rack rent for 3 years or less binds a buyer without registration, but an option to renew or to purchase inside it binds a buyer only if registered (Land Registration Ordinance, Cap. 128, s.3(2)).

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Salespersons Qualifying Examination