Guide to buying
- Written by arounddb
It’s not an easy choice: “renting or buying”. Everyone who has lived in Hong Kong for a long time will tell you that some people made a lot of money on capital gains and others, less lucky lost a lot of money. Timing is everything. In this section, you will find information to guide you in your buying process.
1. Offer Letter
Your agent will submit an offer to the landlord on your behalf. Once an agreeable offer is achieved, the agent will prepare a “Provisional Sales & Purchase Agreement” which terms are binding to both parties once the document is executed by both parties.
2. Land Search
Prior to committing to the ‘Provisional Agreement’ it is important to check on the right of ownership. Your agent provides you with the most current land search from the land office showing the legal ownership of the seller.
3. Initial Deposit
An initial Deposit which needs to be agreed will be paid upon signing of the Provisional Sale & Purchase Agreement. This deposit is non-refundable and penalty will be implemented according to the terms stated in the agreement should either party decided to withdraw from the agreement.
4. Formal Sales & Purchase Agreement
This will be drafted by the solicitor. Further deposit will be equivalent to 10-15% of the agreed sale price will be paid as agreed.
5. Completion of the deal in normal
Normal practice is minimum one month from signing of the Formal Agreement.
6. Stamp Duty Schedule
Rates on stamp duty for property sales transactions is charged at rates which vary with the amount or value of the consideration, please visit the government website for details http://www.ird.gov.hk/eng/tax/sdu.htm#03