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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying ExaminationA land search for a flat in an old tenement shows an order under section 26A of the Buildings Ordinance (defective building) relating to the external walls, with no letter of compliance. Which of the following is/are correct? (i) The order is an incumbrance on the property. (ii) If it concerns common parts, all owners may share the cost as apportioned under the DMC. (iii) It lapses automatically if the flat is sold. (iv) The salesperson should advise the purchaser to seek legal advice before signing.
Answer: (i), (ii) and (iv) only. (i) True. Building orders registered against a property are incumbrances. (ii) True. Where the order concerns common parts, owners are jointly liable and bear costs as apportioned under the DMC. (iii) False. Orders do not lapse on sale; compliance is shown by a letter of compliance. (iv) True. An outstanding order calls for legal (and possibly technical) advice before a provisional agreement. Rule: Orders under the Buildings Ordinance (including sections 24, 26 and 26A) require works and are incumbrances until a letter of compliance is registered. Source: Buildings Ordinance (Cap. 123), section 26A; EAA, A Study Guide to Estate Agency Law and Practice, Part 4; as at Oct 2026
Assuming a building order is extinguished by a sale.
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Start practising →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.