SQE First-hand residential sales (Cap. 621) question: payable under the Residential Properties (First-hand Sales) Ordinance

EAA SQEFirst-hand residential sales (Cap. 621)

Priya Shah selects Flat 15D at Lotus Bay, Tai Wai, at the price list price of HK$9,280,000 and is about to sign the preliminary agreement for sale and purchase. What preliminary deposit is payable under the Residential Properties (First-hand Sales) Ordinance?

A HK$464,000
B HK$928,000
C HK$278,400
D HK$92,800

Show the answer and explanation

Answer: A. HK$464,000

Answer: HK$464,000, which is 5% of the purchase price. Working: 10% of HK$9,280,000 is HK$928,000; half of that is HK$464,000. Why not the others: - HK$928,000: That is 10%, the preliminary deposit under the pre-2013 Consent Scheme practice. - HK$278,400: That is 3%, which has no basis in the Ordinance. - HK$92,800: That is 1% of the price. Rule: A preliminary deposit of 5% of the purchase price is payable on entering into the preliminary agreement, and section 52(1) prevails over any inconsistent term of the preliminary agreement. Source: Residential Properties (First-hand Sales) Ordinance (Cap. 621), section 52(1)–(2); as at Oct 2026

Common mistake

Using the old 10% preliminary deposit from pre-Ordinance first sales.

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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.