NOTES TO PURCHASERS OF FIRST-HAND RESIDENTIAL PROPERTIES
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1 NOTES TO PURCHASERS OF FIRST-HAND RESIDENTIAL PROPERTIES 2
2 NOTES TO PURCHASERS OF FIRST-HAND RESIDENTIAL PROPERTIES 3
3 NOTES TO PURCHASERS OF FIRST-HAND RESIDENTIAL PROPERTIES This Note is issued by the Sales of First-hand Residential Properties Authority (SRPA) for the purpose of section 19(1) of the Residential Properties (First-hand Sales) Ordinance. ou are advised to take the following steps before purchasing rst-hand residential properties. ake reference to the aterials available on the Sales of Firsthand Residential Properties lectronic Platfor (SRP) (www. srpe.gov.hk) on the rst-hand residential property arket. Study the inforation on the website designated by the vendor for the developent including the sales brochure price lists docuents containing the sales arrangeents and the register of transactions of a developent. Sales brochure for a developent will be ade available to the general public at least days iediately before a date of sale while price list and sales arrangeents will be ade available at least 3 days iediately before the date of sale. nforation on transactions can be found on the register of transactions on the website designated by the vendor for the developent and the SRP. alculate the total epenses of the purchase such as solicitors fees ortgage charges insurance fees and stap duties. heck with banks to nd out if you will be able to obtain the needed ortgage loan select the appropriate payent ethod and calculate the aount of the ortgage loan to ensure it is within your repayent ability. heck recent transaction prices of coparable properties for coparison. heck with the vendor or the estate agent the estiated anageent fee the aount of anageent fee payable in advance (if any) special fund payable (if any) the aount of reiburseent of the deposits for water electricity and gas (if any) andor the aount of debris reoval fee (if any) you have to pay to the vendor or the anager of the developent. endors ay not offer to sell all the residential properties that are covered in a price list. To know which residential properties the vendors ay offer to sell pay attention to the sales arrangeents which will be announced by the vendors at least 3 days before the relevant residential properties are offered to be sold. Pay attention to the ters of payent as set out in a price list. f there are discounts on the price gift or any nancial advantage or benet to be ade available in connection with the purchase of the residential properties such inforation will also be set out in the price list. f you intend to opt for any ortgage loan plans offered by nancial institutions specied by the vendor before entering into a preliinary agreeent for sale and purchase (PASP) you ust study the details of various ortgage loan plans 1 as set out in the price list concerned. f you have any uestions about these ortgage loan plans you should check with the nancial institutions concerned direct before entering into a PASP. Pay attention to the area inforation in the sales brochure and price list and price per suare footetre in the price list. According to the Residential Properties (First-hand Sales) Ordinance (ap. 1) (the Ordinance) vendors can only present the area and price per suare foot and per suare etre of a residential property using saleable area. Saleable area in relation to a residential property eans the oor area of the residential property and includes the oor area of every one of the following to the etent that it fors part of the residential property - (i) a balcony (ii) a utility platfor and (iii) a verandah. The saleable area ecludes the area of the following which fors part of the residential property - air-conditioning plant roo bay window cockloft at roof garden parking space roof stairhood terrace and yard. Floor plans of all residential properties in the developent have to be shown in the sales brochure. n a sales brochure oor plans of residential properties in the developent ust state the eternal and internal diensions of each residential property. The eternal and internal diensions of residential properties as provided in the sales brochure eclude plaster and nishes. ou are advised to note this if you want to buy furniture before handing over of the residential isit the developent site and get to know the surroundings of the property (including transportation and counity facilities). heck town planning proposals and decisions which ay affect the Take a look at the location plan aerial photograph outline zoning plan and cross-section plan that are provided in the sales brochure. nsure that the sales brochure you have obtained is the latest version. According to the Ordinance the sales brochure ade available to the public should be printed or eained or eained and revised within the previous 3 onths. Read through the sales brochure and in particular check the following inforation in the sales brochure whether there is a section on relevant inforation in the sales brochure under which inforation on any atter that is known to the vendor but is not known to the general public and is likely to aterially affect the enoyent of a residential 4
4 NOTES TO PURCHASERS OF FIRST-HAND RESIDENTIAL PROPERTIES property will be set out. Please note that inforation contained in a docuent that has been registered with the and Registry will not be regarded as relevant inforation the cross-section plan showing a cross-section of the building in relation to every street adacent to the building and the level of every such street in relation to a known datu and to the level of the lowest residential oor of the building. This will help you visualize the difference in height between the lowest residential oor of a building and the street level regardless of how that lowest residential oor is naed interior and eterior ttings and nishes and appliances the basis on which anageent fees are shared whether individual owners have obligations or need to share the epenses for anaging operating and aintaining the public open space or public facilities inside or outside the developent and the location of the public open space or public facilities; and whether individual owners have responsibility to aintain slopes. Read the overnent land grant and the (or the draft ). nforation such as ownership of the rooftop and eternal walls can be found in the. The vendor will provide copies of the overnent land grant and the (or the draft ) at the place where the sale is to take place for free inspection by prospective purchasers. heck the overnent land grant on whether individual owners are liable to pay overnent rent. heck the on whether anials can be kept in the residential heck with the vendor which residential properties are available for selection. f a consuption table is displayed by the vendor at the sales ofce you ay check fro the table inforation on the progress of sale on a date of sale including which residential properties are offered for sale at the beginning of that date of sale and which of the have been selected and sold during that date of sale. o not believe in ruours about the sales condition of the developent and enter into a PASP rashly. Pay attention to the register of transactions for a developent. A vendor ust within hours after entering into a PASP with a purchaser enter transaction inforation of the PASP in the register of transactions. The vendor ust within 1 working day after entering into an agreeent for sale and purchase (ASP) enter transaction inforation of the ASP in the register of transactions. heck the register of transactions for the concerned developent to learn ore about the sales condition of the developent. Never take the nuber of registrations of intent or cashier orders a vendor has received for the purpose of registration as an indicator of the sales volue of a developent. The register of transactions for a developent is the ost reliable source of inforation fro which ebers of the public can grasp the daily sales condition of the developent. nsure that the PASP and ASP include the andatory provisions as reuired by the Ordinance. Pay attention that ttings nishes and appliances to be included in the sale and purchase of the property are inserted in the PASP and ASP. Pay attention to the area plan anneed to the ASP which shows the total area which the vendor is selling to you. The total area which the vendor is selling to you is norally greater than the saleable area of the A preliinary deposit of 5% of the purchase price is payable by you to the owner (i.e. the seller) on entering into a PASP. f you do not eecute the ASP within (working day eans a day that is not a general holiday or a Saturday or a black rainstor warning day or gale warning day) after entering into the PASP the PASP is terinated the preliinary deposit (i.e. of the purchase price) is forfeited and the owner (i.e. the seller) does not have any further clai against you for not eecuting the ASP. f you eecute the ASP within working days after the signing of the PASP the owner (i.e. the seller) ust eecute the ASP within 8 working days after entering into the PASP. The deposit should be ade payable to the solicitors r responsible for stakeholding purchasers payents for the Note that vendors (including their authorized representative(s)) should not seek or accept any specic or general epression of intent of purchasing any residential property before the relevant price lists for such properties are ade available to the public. ou therefore should not ake such an offer to the vendors or their authorized representative(s). Note that vendors (including their authorized representative(s)) should not seek or accept any specic epression of intent of purchasing a particular residential property before the sale of the property has coenced. ou therefore should not ake such an offer to the vendors or their authorized representative(s). Note that if the vendor has appointed one or ore than one estate agents to act in the sale of any specied residential property in the developent the price list for the developent ust set out the nae of all the estate agents so appointed as at the date of printing of the price list. ou ay appoint any estate agent (not necessarily fro those estate agency copanies appointed by the vendor) to act in the purchase of any specied residential property in the developent and ay also not appoint any estate agent to act on your behalf. efore you appoint an estate agent to look for a property you should nd out whether the agent will act on your behalf only. f the agent also acts for the vendor heshe ay not be able to protect your best interests in the event of a conict of interest; nd out whether any coission is payable by you to the estate agent and if so its aount and the tie of payent; and note that only licensed estate agents or salespersons ay accept your appointent. f in doubt you should reuest the estate agent or salesperson to produce hisher state Agent ard or check the icence ist on the state Agents Authority website: onsider appointing your own solicitor to protect your interests. f the solicitor also acts for the vendor heshe ay not be able to protect your best interests in the event of a conict of interest. opare the charges of different solicitors. For uncopleted residential property under the ands epartent onsent Schee seek conration fro the vendor whether the Pre-sale onsent has been issued by the ands epartent for the developent. hile the vendor is not reuired to ake any show at available for viewing by prospective purchasers or the general public if the vendor wishes to ake available show ats of a specied residential property the vendor ust rst of all ake available an unodied show at of that residential property and that having ade available such unodied show at the vendor ay then ake available a odied show at of that residential n this connection the vendor is allowed to ake available ore than one odied show at of that residential 5
5 NOTES TO PURCHASERS OF FIRST-HAND RESIDENTIAL PROPERTIES 6a b f you visit the show ats you should always look at the unodied show ats for coparison with the odied show ats. That said the Ordinance does not restrict the discretion of the vendor in arranging the seuence of the viewing of unodied and odied show ats. Sales brochure of the developent should have been ade available to the public when the show at is ade available for viewing. You are advised to get a copy of the sales brochure and ake reference to it when viewing the show ats. You ay take easureents in odied and unodied show ats and take photographs or ake video recordings of unodied show ats subect to reasonable restriction(s) which ay be set by the vendor for ensuring safety of the persons viewing the show at. heck the estiated aterial date 3 for the developent in the sales brochure. The estiated aterial date for a developent in the sales brochure is not the sae as the date on which a residential property is handed over to purchaser. The latter is inevitably later than the forer. anding over date The andatory provisions to be incorporated in an ASP as reuired by the Ordinance include a provision reuiring the vendor to apply in writing for an Occupation ocuent a erticate of opliance or the irector of ands onsent to Assign (as the case ay be) in respect of the developent within 1 days after the estiated aterial date as stipulated in the ASP. For developent subect to the ands epartent onsent Schee the vendor is reuired to notify the purchaser in writing that the vendor is in a position validly to assign the property within one onth after the issue of the erticate of opliance or the onsent to Assign whichever rst happens; or For developent not subect to the ands epartent onsent Schee the vendor is reuired to notify the purchaser in writing that the vendor is in a position validly to assign the property within onths after the issue of the Occupation ocuent including Occupation Perit. The andatory provisions to be incorporated in an ASP as reuired by the Ordinance include a provision reuiring copletion of the sale and purchase within 1 days after the date of the notication aforesaid. pon copletion the vendor shall arrange handover of the property to the purchaser. Authorized Person (AP) ay grant etension(s) of tie for copletion of the developent beyond the estiated aterial date. The andatory provisions to be incorporated in an ASP as reuired by the Ordinance include a provision that the AP of a developent ay grant an etension of tie for copletion of the developent beyond the estiated aterial date having regard to delays caused eclusively by any one or ore of the following reasons: strike or lock-out of worken; riots or civil cootion; force aeure or Act of od; re or other accident beyond the vendors control; > war; or > incleent weather. The AP ay grant ore than once such an etension of tie depending on the circustances. That eans handover of the property ay be delayed. The andatory provisions to be incorporated in an ASP as reuired by the Ordinance also include a provision reuiring the vendor to within 1 days after the issue of an etension of tie granted by the AP furnish the purchaser with a copy of the relevant certicate of etension. Ask the vendor if there are any uestions on handing over date. nsure that you obtain the vendors inforation for(s) printed within the previous 3 onths in relation to the residential propertyproperties you intend to purchase. nsure that before you purchase a residential property you are arranged to view the residential property that you would like to purchase or if it is not reasonably practicable to view the property in uestion a coparable property in the developent unless you agree in writing that the vendor is not reuired to arrange such a coparable property for viewing for you. You are advised to think carefully before signing any waiver. You ay take easureents take photographs or ake video recordings of the property unless the property is held under a tenancy or reasonable restriction(s) isare needed to ensure safety of the persons viewing the For coplaints and enuiries relating to the sales of rst-hand residential properties by the vendors which the Ordinance applies please contact the Sales of First-hand Residential Properties Authority - ebsite : Telephone : ail : enuirysrpahd.gov.hk Fa : 19 Other useful contacts: onsuer ouncil ebsite : Telephone : 99 ail : ccconsuer.org.hk Fa : Estate Agents Authority ebsite : Telephone : 111 Eail : enuiryeaa.org.hk Fa : Real Estate evelopers Association of ong ong Telephone : Fa : 8 1 Sales of First-hand Residential Properties Authority Transport and ousing ureau August 1 1 The details of various ortgage loan plans include the reuireents for ortgagors on iniu incoe level the loan liit under the rst ortgage and second ortgage the aiu loan repayent period the change of ortgage interest rate throughout the entire repayent period and the payent of adinistrative fees. According to section 1()(d) in Part 1 of Schedule 1 to the Ordinance each of the oor plans of the residential properties in the developent in the sales brochure ust state the following (i) the eternal diensions of each residential property; (ii) the internal diensions of each residential property; (iii) the thickness of the internal partitions of each residential property; (iv) the eternal diensions of individual copartents in each residential According to section 1(3) in Part 1 of Schedule 1 to the Ordinance if any inforation reuired by section 1()(d) in Part 1 of Schedule 1 to the Ordinance is provided in the approved building plans for the developent a oor plan ust state the inforation as so provided. 3 enerally speaking aterial date eans the date on which the conditions of the land grant are coplied with in respect of the developent or the date on which the developent is copleted in all respects in copliance with the approved building plans or the conditions subect to which the certicate of eeption is issued. For details please refer to section of the Ordinance.
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