SQE Other ordinances in agency practice question: flat in Ma On Shan

EAA SQEOther ordinances in agency practice

Three instruments affect the same flat in Ma On Shan: - A legal charge to Bank P: executed 2 Mar 2026, registered 20 Mar 2026. - A second charge to Finance Q: executed 1 Mar 2026, registered 10 Apr 2026. - An agreement for sale and purchase with Ms R: executed 5 Mar 2026, registered 25 Mar 2026. Under the Land Registration Ordinance (Cap. 128), in what order of priority do they rank, highest first?

A Finance Q, then Bank P, then Ms R
B Bank P, then Finance Q, then Ms R
C Ms R, then Bank P, then Finance Q
D Bank P, then Ms R, then Finance Q

Show the answer and explanation

Answer: D. Bank P, then Ms R, then Finance Q

Answer: Bank P, then Ms R, then Finance Q. Working: - Bank P: registered 18 days after execution, within one month, so priority relates back to execution on 2 Mar 2026. - Ms R: registered 20 days after execution, within one month, so priority relates back to 5 Mar 2026. - Finance Q: registered more than one month after execution (1 Mar to 10 Apr), so priority runs only from registration on 10 Apr 2026. Why not the others: - Finance Q first: Q was executed first, but because it was registered late it cannot relate back to 1 Mar. - Bank P, Finance Q, Ms R: This ranks Q by its execution date, which section 5 does not allow for a late registration. - Ms R first: Ms R relates back to 5 Mar, which is later than Bank P's 2 Mar. Rule: Registered instruments rank by date of registration (section 3(1)), but an instrument registered within one month after execution takes effect for priority from its own date (section 5). Source: Land Registration Ordinance (Cap. 128), sections 3(1) and 5; as at Oct 2026

Common mistake

Ranking by execution date for every instrument, forgetting that only instruments registered within one month relate back.

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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.