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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying ExaminationMr Ho's mortgage on his flat is an 'all moneys' legal charge. He also owes the same bank HK$800,000 on a business overdraft. He sells the flat. What does the bank require before it releases the charge?
Answer: Repayment of all sums secured, including the overdraft, unless the bank agrees otherwise. Why not the others: - Only the home loan: An all moneys charge secures all sums owed to the bank from time to time. - A 1% release fee: No such fixed fee exists. - Automatic release: A charge is released only by a deed of release after repayment. Rule: Most legal charges secure 'all moneys' due from the mortgagor to the mortgagee; the bank can refuse to release until everything secured is repaid, which can affect whether the vendor can complete. Source: EAA, A Study Guide to Estate Agency Law and Practice, Part 4 (mortgage or legal charge); as at Oct 2026
Assuming only the home loan must be repaid to clear title.
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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.