SQE Code of Ethics question: purchaser to sign a provisional agreement for sale and purchase with the price

EAA SQECode of Ethics

To save time, salesperson Cathy Yu asks a purchaser to sign a provisional agreement for sale and purchase with the price, deposit and completion date left blank, promising to fill them in once the vendor agrees. Which statement best describes her conduct?

A Improper, as EAA guidelines tell licensees not to have clients sign agreements with blanks in essential terms
B Acceptable if she gives the purchaser a copy of the blank agreement on the same day
C Acceptable because the terms will be filled in before the vendor signs the agreement
D Improper only if the purchaser later disputes the terms that Cathy fills in for him

Show the answer and explanation

Answer: A. Improper, as EAA guidelines tell licensees not to have clients sign agreements with blanks in essential terms

Answer: Improper. The EAA has told licensees not to have clients sign agreements with essential terms left blank. Why not the others: - Acceptable with a same-day copy: Giving a copy does not cure blanks in the price, deposit and completion date. - Filled in before the vendor signs: Filling in later is the very practice the guidance warns against; the purchaser has not agreed the terms. - Only if disputed later: The practice itself breaches the guidelines, whether or not a dispute follows. Rule: Licensees should be fully conversant with, and comply with, the EAO, its subsidiary legislation, the Code and the EAA's guidelines, which include Practice Circulars warning against blank provisional agreements. Source: EAA Code of Ethics, paragraph 3.2.1; EAA Practice Circular No. 13-06 (CR); as at Oct 2026

Common mistake

Believing a blank agreement is fine as long as the terms are filled in before the other side signs.

Practise more SQE Code of Ethics questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Code of Ethics SQE practice questions and mock exams

Related SQE questions

Salesperson Peter Lai is selling a New Territories village house for Mr Tang. The Government grant prohibits sale within five years of the certificate of compliance, which was issued three years ago. Peter does not mention this to Mr Tang or to the purchaser. Which statement is correct?A client asks salesperson Ivy Choi about stamp duty on a flat purchase. Ivy quotes Buyer's Stamp Duty and Special Stamp Duty rates from notes she made in 2022, although those duties were withdrawn for instruments executed from 28 Feb 2024. Which paragraph of the Code is most directly engaged?Salesperson Henry Mak tells a purchaser that a flat in Kwun Tong has a saleable area of 520 square feet and was built in 2008. He copied both figures from an old advertisement and did not check them. The flat is in fact 468 square feet and was built in 1996. Which statement is correct?

Build a daily practice habit : a few exam-style questions a day, with worked answers. Free to start.

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.