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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying ExaminationAfter signing a formal agreement to buy a flat in Kwai Chung, Mr Ho nominates his friend Mr Tse, who is not a relative, to take the assignment instead of him. Mr Tse pays Mr Ho nothing extra. How is the nomination treated for stamp duty?
Answer: chargeable with full AVD. A nomination in favour of a third party is regarded as a further agreement for sale (a sub-sale), so it attracts AVD in its own right. Why not the others: - HK$100: fixed duty applies to an assignment after a stamped agreement, not to a nomination to a new buyer. - Exempt as the price is unchanged: AVD is charged on the higher of the consideration and the value, not only on any profit. - Only within 14 days: the 14-day rule concerns a PASP superseded by a formal agreement between the same parties. Rule: Each sub-sale agreement or nomination attracts AVD; the exemption covers nomination of a close relative (spouse, parent, child, brother or sister) who owns no other Hong Kong residential property. Source: Stamp Duty Ordinance (Cap. 117); IRD FAQ on Ad valorem stamp duty, Q19 (ird.gov.hk), checked 11 Oct 2026; EAA, A Study Guide to Estate Agency Law and Practice, Part 3, para 71; as at Oct 2026
Treating a nomination to a friend like a nomination to a close relative.
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