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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying Examination

EAQE Property ordinances and first-hand sales question: Bank B's mortgage

EAA EAQEProperty ordinances and first-hand sales

Bank A's mortgage was signed on 1 Jun and registered on 20 Jun. Bank B's mortgage over the same flat was signed on 5 Jun and registered on 8 Jun. Which has priority?

A Bank B, because it registered its mortgage first, on 8 Jun
B Bank A: registered within a month, so priority from 1 Jun
C Neither; they rank equally
D Whichever lent the larger amount

Show the answer and explanation

Answer: B. Bank A: registered within a month, so priority from 1 Jun

Answer: Bank A, because registration within one month back-dates its priority to 1 Jun. Working: Bank A executed 1 Jun, registered 20 Jun (within one month), so priority from 1 Jun; Bank B executed 5 Jun, registered 8 Jun, so priority from 5 Jun. 1 Jun is earlier. Why not the others: - Bank B registered first: The one-month rule back-dates Bank A's priority. - Equal ranking: Registered instruments rank in order. - Larger loan: Amount is irrelevant to priority. Rule: An instrument registered within one month after its execution takes priority from the date of execution. Source: Land Registration Ordinance (Cap. 128), sections 3 and 5; as at Oct 2026

Common mistake

Ranking by date of registration without applying the one-month rule.

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Related EAQE questions

Which of the following statements about first-hand residential sales are correct?Mr Lau signs a preliminary agreement for sale and purchase for a new flat on Monday and pays the 5% preliminary deposit. He then changes his mind and does not sign the agreement for sale and purchase. What happens under Cap. 621?Vendor Mr Tse agrees orally on the phone to sell his flat to Ms Kwan at HK$7,000,000, then sells to someone else. Can Ms Kwan sue to enforce the oral agreement?

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An original question written to the published EAQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.