Part 4: Part 4: Land Registration System, Land Search and Property-related Information Systems
Estate Agency Qualifying Examination · Part 4: Part 4: Land Registration System, Land Search and Property-related Information Systems
A buyer client intends to sign a provisional agreement for a property held by a private limited company and wishes to confirm whether any mortgage or charge exists over it. Which of the following documents may contain the relevant information? (i) The vendor company's articles of association (ii) The latest land search record of the property from the Land Registry (iii) Details of the vendor company's registered charges from the Companies Registry (iv) The vendor company's certificate of incorporation (v) The vendor company's business registration certificate
Why: (i) Incorrect: the articles of association govern the company's internal management and contain no mortgage or charge details for a specific property.(ii) Correct: a land search record shows all encumbrances affecting the property, including mortgages, legal charges, building orders and court orders (HKRE sample question p53).(iii) Correct: the Companies Registry keeps records of a company's registered charges, including charges over land or interests in land.(iv) Incorrect: the certificate of incorporation only proves that the company has been incorporated.(v) Incorrect: the business registration certificate only proves that the company has registered its business.Therefore the answer is B.
Landlord Chi-keung intends to grant tenant Hiu-lam a one-year residential tenancy. A land search shows the following registered documents: (i) A legal charge registered by Fusion Bank (ii) A second legal charge registered by Yu Fung Finance Company (iii) A memorial of charge for unpaid management fees registered by the building management company (iv) A building order registered by the Building Authority As Hiu-lam's agent, you should advise her to require Chi-keung to obtain prior written consent from which party before taking up the tenancy?
Why: Mortgage deeds and legal charges usually contain a covenant that the owner must not let the property without the mortgagee's prior written consent; if the property is let without consent and later repossessed, the tenant cannot remain, so the agent should advise the tenant to require the landlord to obtain written consent from all mortgagees, banks and finance companies alike (HKRE_EA01_40C p36).Approval from the building management company or the Building Authority is not a prerequisite for a tenancy; the second mortgagee's interest is equally affected, so consent from the first mortgagee alone is not enough.
Under the Land Registration Ordinance, which of the following instrument(s) is/are registrable at the Land Registry? (i) A deed of assignment of a residential flat (ii) A mortgage of a car parking space (iii) A charging order over a commercial/industrial property
Why: (i) Correct: a deed of assignment is an instrument affecting land and is registrable at the Land Registry (HKRE sample question p36).(ii) Correct: a car parking space is an interest in land, so a mortgage of it is likewise registrable.(iii) Correct: a charging order affects the land interest in the commercial/industrial property and is also registrable.Therefore the answer is E.
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