SQE Estate agency agreements and prescribed forms question: Chow liable to pay Lotus Property under the Form

Answer: A. HK$76,000

Answer: HK$76,000. Schedule 3 to Form 4 makes the purchaser liable for commission if he or his spouse, nominee, undisclosed principal or agent enters into a binding agreement for sale and purchase of a listed property during the validity period, whether through the agent or otherwise. Working: 1% x HK$7,600,000 = HK$76,000. Why not the others: - Nothing: purchases by the spouse and purchases made 'otherwise' than through the agent are both caught. - Half: Form 4 contains no reduction where the agent did not negotiate. - A reduced rate: no such rate exists; the agreed 1% applies. Rule: A Form 4 agent is protected for the listed properties during the validity period against purchases by the client's spouse, nominee, undisclosed principal or agent. Source: Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation (Cap. 511C), Schedule, Form 4, Schedule 3 s.5, as at Oct 2026