Mr Tang, an indigenous villager, built a small house under a Government grant two years ago. He asks salesperson Iris Wan to sell it quickly to an outsider. What should Iris check first?
Answer: Whether the grant restricts alienation and whether the restriction has been lifted, for example on payment of a premium. Why not the others: - An occupation permit: Small houses are usually exempted and have a certificate of exemption, not an occupation permit; and this does not address alienation. - Town Planning Board approval of the sale: The Board deals with land use, not sales. - Only rates paid: Rates do not affect whether the house may be sold. Rule: Small house grants usually contain restrictions on alienation, which may need removal (often on payment of a premium) before sale. Licensees should check the grant and any modification, consent or waiver letters, which should be registered in the Land Registry. Source: Lands Department Small House Policy; EAA, A Study Guide to Estate Agency Law and Practice, Part 5; as at Oct 2026
Assuming a small house can be sold to anyone as soon as it is built.
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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.