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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying ExaminationEstate agent Mr Lai is reviewing a search before a sale. Which of the following should he raise with the client? (i) The Government lease is non-renewable and expires in 2034. (ii) The vendor bought five years ago at a higher price and an all moneys mortgage is undischarged. (iii) A section 24 Buildings Ordinance order has a registered letter of compliance below it. (iv) A car parking space mentioned by the vendor does not appear on the search.
Answer: (i), (ii) and (iv) only. (i) Raise it. The unexpired term of a non-renewable lease should be explained, with legal advice recommended. (ii) Raise it. A possible negative equity position calls for warnings and stakeholding of deposits. (iii) No need to raise it as a problem. A registered letter of compliance shows the order has been complied with. (iv) Raise it. The car park needs a separate search. Rule: Licensees should analyse the Property Particulars, Owner Particulars and Incumbrances and alert clients to issues that may affect title, value or completion. Source: Practice Regulation (Cap. 511C), section 13 and Form 1; EAA, A Study Guide to Estate Agency Law and Practice, Part 4; as at Oct 2026
Treating a complied-with order as still outstanding.
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Start practising →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.