SQE Leasing and tenancy question: Yuen lets a subdivided unit in To Kwa Wan under a regulated tenancy at HK$5,500 a month

EAA SQELeasing and tenancy

Mrs Yuen lets a subdivided unit in To Kwa Wan under a regulated tenancy at HK$5,500 a month. She gives the tenant a written account apportioning the flat's electricity bill among the units. Which of these may she lawfully require the tenant to pay? (i) A rental deposit of HK$11,000. (ii) A HK$1,000 administration fee for preparing the tenancy agreement. (iii) Electricity charges not exceeding the apportioned amount shown in her written account. (iv) Half of the stamp duty on the tenancy agreement, as the tenancy agreement provides.

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

Show the answer and explanation

Answer: C. (i) and (iii) only

Answer: (i) and (iii) only. (i) True. The rental deposit may be up to two months' rent: 2 x HK$5,500 = HK$11,000. (ii) False. Only rent, the permitted deposit, reimbursement of specified utilities and services, and damages for breach may be required or received; any other payment is an offence (s.120AAZL). (iii) True. Utility reimbursements are allowed, but not above the apportioned amount in the landlord's written account (s.120AAZM). (iv) False. Schedule 7 provides that stamp duty on a regulated tenancy is borne by the landlord solely, whatever the agreement says. Rule: A landlord of a regulated tenancy may receive only rent, a deposit of not more than 2 months' rent, utility reimbursements not exceeding the apportioned amount, and damages for breach. Source: Landlord and Tenant (Consolidation) Ordinance (Cap. 7), ss.120AAZL and 120AAZM and Schedule 7; EAA Practice Circular No. 22-01 (CR) (effective 22 Jan 2022), para (14) and Annex; as at Oct 2026

Common mistake

Applying ordinary tenancy practice, such as sharing stamp duty or charging fees, to a regulated SDU tenancy.

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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.