SQE Code of Ethics question: Ivy quotes Buyer's Stamp Duty and Special Stamp Duty rates

EAA SQECode of Ethics

A client asks salesperson Ivy Choi about stamp duty on a flat purchase. Ivy quotes Buyer's Stamp Duty and Special Stamp Duty rates from notes she made in 2022, although those duties were withdrawn for instruments executed from 28 Feb 2024. Which paragraph of the Code is most directly engaged?

A Paragraph 3.6.2, disclosure of pecuniary interests to all parties concerned
B Paragraph 3.7.3, adherence to the principles of fair competition
C Paragraph 3.7.1, not injuring the reputation of other agencies
D Paragraph 3.2.2, keeping informed of laws, regulations and market developments to advise responsibly

Show the answer and explanation

Answer: D. Paragraph 3.2.2, keeping informed of laws, regulations and market developments to advise responsibly

Answer: Paragraph 3.2.2, keeping informed so as to advise clients responsibly. Why not the others: - Paragraph 3.6.2: No conflict or interest of Ivy's is involved. - Paragraph 3.7.3: Fair competition concerns restrictive practices between agencies. - Paragraph 3.7.1: No other agency is involved. Rule: Licensees should keep themselves informed of laws, government regulations, essential facts and market developments so they can advise clients responsibly. Buyer's Stamp Duty, New Residential Stamp Duty and Special Stamp Duty no longer apply to instruments executed on or after 28 Feb 2024. Source: EAA Code of Ethics, paragraph 3.2.2; Inland Revenue Department, stamp duty measures withdrawn from 28 Feb 2024; as at Oct 2026

Common mistake

Relying on outdated stamp duty notes after the Feb 2024 withdrawal of the extra duties.

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An original question written to the published SQE 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.