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SQESalespersons Qualifying Examination✓EAQEEstate Agents Qualifying ExaminationMr Ho signs a document called a 'licence agreement' to occupy a flat for 12 months at HK$18,000 a month. He alone holds the keys, and the owner has no right to enter except for repairs on notice. How is the arrangement most likely to be treated in law?
Answer: A tenancy, because he has exclusive possession for a term at a rent. Why not the others: - A licence because of the label: The substance, not the label, decides; a 'licensee' with exclusive possession for a term at a rent is a tenant. - A tenancy must be by deed: Tenancies not exceeding three years need not be by deed. - A tenancy at will for unpaid stamp duty: Stamping affects admissibility in evidence and registration, not the nature of the arrangement. Rule: A person given exclusive possession of premises for a term certain at a rent is a tenant, whatever the document calls him; a licence gives only a personal, non-exclusive right to occupy. Source: EAA, A Study Guide to Estate Agency Law and Practice, Part 7, paras 1, 2 and 20; as at Oct 2026
Letting the document's label decide whether it is a tenancy.
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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.