EAQE Land search and property information question: normally removed by the vendor on completion rather than continuing to bind the purchaser

EAA EAQELand search and property information

Which of these registered incumbrances is normally removed by the vendor on completion rather than continuing to bind the purchaser?

A A legal charge in favour of the vendor's bank
B The Deed of Mutual Covenant for the building
C The occupation permit for the building
D A registered easement benefiting the neighbouring lot

Show the answer and explanation

Answer: A. A legal charge in favour of the vendor's bank

Answer: The vendor's legal charge, which is redeemed and released on completion. Why not the others: - The DMC: It binds every owner permanently and continues after the sale. - The occupation permit: It is part of the building's record and stays on the register. - An easement for the neighbouring lot: It runs with the land and binds the new owner. Rule: Some incumbrances, such as a vendor's mortgage, are discharged on completion; others, such as the DMC or an easement, continue to bind the purchaser. Where an incumbrance will not be removed on completion, the purchaser should consult his solicitor about its effect. Source: Land Registration Ordinance (Cap. 128); EAA, A Study Guide to Estate Agency Law and Practice, Part 4; as at Oct 2026