EAQE Property ordinances and first-hand sales question: first-hand residential sales

EAA EAQEProperty ordinances and first-hand sales

Which of the following statements about first-hand residential sales are correct? (i) The preliminary deposit is 5% of the purchase price. (ii) The sales brochure must have been printed, or examined and revised, within the previous 3 months. (iii) Information on the SRPE database is maintained by the SRPA. (iv) An estate agency may offer buyers a cash rebate orally, without setting its terms out in writing.

A (i) and (ii) only
B (i), (ii) and (iii) only
C (ii), (iii) and (iv) only
D (i), (ii), (iii) and (iv)

Show the answer and explanation

Answer: B. (i), (ii) and (iii) only

Answer: (i), (ii) and (iii) only. (i) True. Section 52 sets a 5% preliminary deposit. (ii) True. The brochure must be printed or examined and revised within the previous 3 months. (iii) True. The SRPA runs the electronic database (SRPE) under section 89. (iv) False. Circular No. 13-04 (CR), para (33), requires licensees to set out in writing any incentives (including gifts, discounts or rebates) they offer, with their terms and format; Circular No. 24-01 (CR) adds a pro-forma incentive letter for first-hand sales. Rule: Cap. 621 regulates deposits, brochures, price lists and the SRPE; EAA circulars regulate agents' incentives and conduct at first sales. Source: Residential Properties (First-hand Sales) Ordinance (Cap. 621), sections 25, 52 and 89; EAA Practice Circulars Nos. 13-04 (CR) and 24-01 (CR); as at Oct 2026

Common mistake

Offering undisclosed cash-backs at first sales.

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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.