Formal Sale and Purchase Agreement

Although a provisional sale and purchase agreement is a legally binding contract, it only contains basic terms and therefore the protection provisions for the contracting parties (especially the purchaser) are limited. A formal sale and purchase agreement should be drafted by a solicitor based on the provisional agreement. A formal agreement contains terms that are more detailed and is intended to replace the provisional agreement. In case the parties fail to sign the formal agreement (e.g. they cannot agree on all the terms of the formal agreement), they are still bound by the provisional agreement.

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• Basic knowledge of land ownership in Hong Kong
  • 1. Am I holding a Government lease while owning a flat in a multi-storey building?
  • 2. What are the different ways of owning a property? What is sole ownership and what are joint tenants and tenants-in-common?
  • 3. Can I sell my property if I am one of the joint tenants/tenants in common?
  • 4. I am not the "registered owner" of a flat although I have paid part or all of the money to purchase the flat. Do I have a say in matters concerning the property? Can I stop the "registered owner" from selling the property?
  • 1. I want to sell my flat. What services can I expect from an estate agent?
  • 2. As a vendor, must I sign an estate agency agreement when I ask an agent to help me sell my flat?
  • 3. Can the same agent serve both the vendor and the purchaser?
  • 4. Do I pay less commission if the same agent serves both the purchaser and me (the vendor)?
  • 5. I want to buy a flat. What services can I expect and what information can I obtain from the agent who shows me a flat?
  • 6. As a purchaser, must I sign an estate agency agreement when I ask an agent to show me a flat?
  • 7. Do I pay less commission if the same agent serves both the vendor and me (the purchaser)?
  • 8. What if I sign a 'Form 4' with an agent who shows me a flat, and later, I buy the flat through another agent or directly from the vendor?
  • 9. What if I sign a 'Form 4' with an agent who shows me a flat, and later, someone related to me (e.g. my spouse) buys the flat through another agent or directly from the vendor?
  • 10. Where can I go to make a complaint if I am not satisfied with my agent?
  • 11. Before I buy the flat, I find out that my agent gave me false information or he forgot to tell me some important information about the flat. Can I terminate the provisional agreement and sue my agent (and his employer) for compensation?
  • 1. I want to purchase a flat. What should I do before I sign the provisional sale and purchase agreement and pay the initial deposit?
  • 2. When the property is sold with an existing tenancy, what should the purchaser and the vendor be aware of?
  • 3. What are the usual terms that would be contained in the provisional sale and purchase agreement?
  • 4. Should the provisional sale and purchase agreement be stamped and registered?
  • 5. What should a purchaser be aware of if there is an existing mortgage on the flat before he/she signs the provisional sale and purchase agreement?
  • 6. If a purchaser intends to buy a flat over which there is a negative equity (the purchase price to be paid cannot fully offset the outstanding mortgage loan), how can the purchaser deal with the risk?
  • 7. What should a purchaser do if a mortgage is needed?
  • 8. Can a purchaser re-sell the property after signing the provisional sale and purchase agreement?
  • 9. Can a purchaser refuse to complete the purchase of a stigmatized property after signing the provisional or formal sale and purchase agreement?
  • 1. What are the usual steps for signing the formal sale and purchase agreement and paying the further deposit?
  • 2. I (as a purchaser) signed the provisional agreement but I want to add my spouse's name or my parents' names into the subsequent formal agreement. Can I do that?
  • 3. If I want to sell or transfer my flat to a member of my family or a relative, what should I be aware of?
  • 4. Should I enter into a sale and purchase agreement or execute a deed of gift if I want to give my property to my husband/wife?
  • 5. How much stamp duty is payable for the sale and purchase agreement for a residential property?
  • 6. Is there any difference between 'residential' and 'commercial' properties as far as stamp duty is concerned?
  • 7. Can the purchaser apply for deferring payment of stamp duty?
  • 8. Should the sale and purchase agreement for the property be registered at the Land Registry? How much is the registration fee?
  • 9. How much will I have to pay the solicitor for a property transaction? Is there a fixed scale?
  • 10. What happens if there are discrepancies in the terms between the provisional agreement and the formal agreement?
  • 11. If the vendor/purchaser anticipates that he will be out of Hong Kong and therefore cannot sign the formal agreement, what can he do?
  • 1. If one party commits other wrongful acts, e.g. the vendor broke a small window in the kitchen, can the other party terminate the sale and purchase agreement or claim for compensation?
  • 1. If there are some "new expenses" (e.g. repair costs for the relevant building) come out after the parties signed the formal sale and purchase agreement but before the completion day, should the vendor or the purchaser bear these expenses?
  • 1. Sale and purchase of property under construction is governed by either the "Consent Scheme" or the "Non-Consent Scheme". What are the differences between these two schemes?
  • 2. If the developer/vendor fails to complete the building and hand over the flats to the purchasers on time, can the purchasers terminate the agreement and sue for compensation?
  • 1. What are the functions of the Owners' Corporation and the building manager?
  • 2. How to set up an Owners' Corporation?

  

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