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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying ExaminationOn 2 May, owner Mr Kam signs a provisional agreement to sell his flat to Ms Lui, who does not register it. On 10 May he signs a second agreement with Mr Pang, who knows about Ms Lui's agreement and registers his own on 12 May. Under the Land Registration Ordinance, whose agreement has priority?
Answer: Mr Pang's registered agreement prevails. Why not the others: - Ms Lui's because she was first and Mr Pang knew: The Ordinance provides that no notice is taken of a prior unregistered but registrable interest, so knowledge does not defeat Mr Pang. - Neither: The agreements do not cancel each other; Ms Lui keeps a claim against Mr Kam for breach. - One month's protection for unregistered agreements: The one-month rule back-dates priority only for instruments that are actually registered within one month of execution; Ms Lui never registered. Rule: Registered instruments have priority according to their dates of registration, and an unregistered registrable instrument is void as against a later bona fide purchaser for value who registers, even one with notice. Source: Land Registration Ordinance (Cap. 128), sections 3, 4 and 5; as at Oct 2026
Applying the general equitable rule that notice of an earlier interest binds a later buyer.
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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.