What are the processes of sale and purchase of property?

A common sale and purchase of property is generally divided into three processes: (1) Negotiation, (2) Contract, (3) Completion, i.e. signing the Deed of Assignment. If the two parties of the sale and purchase agreed, they could skip the process of Contract and execute the Deed of Assignment right away after negotiation.

What is the legal effect of the Provisional Agreement for Sale and Purchase?

The Provisional Agreement for Sale and Purchase refers to the standard agreement prepared by the estate agent and signed by the vendor, purchaser and estate agent after negotiation of the main terms of the sale and purchase. The content is mainly about the identities of the two parties, the address of the property, consideration, etc. The Provisional Agreement is enforceable in law. But normally, after signing the Provisional Agreement for Sale and Purchase, the two parties will execute the Formal Agreement for Sale and Purchase to replace the provisional one.

Why is it necessary to instruct solicitors during the process of sale of property?

In order to ensure a good title, a purchaser in a conveyance shall be entitled to all title deeds and documents in respect of the property. These processes of verification are very complicated, and it is common for the two parties of a conveyance to separately instruct their own solicitors to verify the title, as well as drafting the Agreement for Sale and Purchase and the Deed of Assignment for them.

What is illegal structure?

In Hong Kong, buildings are normally constructed according to the approved plans issued by the Building Authorities. Illegal structure is the one not included in these plans but fixed to the building.

How to inspect whether a structure is illegal?

To inspect a structure, other than examining the descriptions in the first-hand deeds of the building, theoretically one can look over the approved plans filed with the Building Authorities. However, only licensed surveyors are authorized to do so.

What is the effect of illegal structures on sale and purchase of a property?

Since the illegal structure is not legitimate, it is a breach of covenant in the government lease, which would lead to forfeiture by the government at any time. At the point of view of law, title of the property is therefore defective. Even if the government does not forfeit, when the owner received a demolition order from the government, or when he is jointly sued by other owners of the same building who have no illegal structures, he has to pay for the cost of demolition and other relevant costs charged by the government authorities. Accordingly, purchaser would usually require the vendor to demolish illegal structures before the transaction.

Of how long would non-payment of rent need to forfeiture by the landlord?

Generally, if there is non-payment of rent more than 15 days counting from the date of payment, the landlord can forfeit the lease at any time after making an appropriate demand for rent.

How to check whether it is allowed to keep pets in a building?

The Deed of Mutual Covenants of the building would clearly list all the relevant covenants. One can instruct his solicitors to obtain a copy of the Deed in the Land Registry for examination.

In case the landlord refused to return the deposit after the expiry of tenancy, how could the tenant claim for the money?

He can claim via the Small Claims Tribunal (for the sum not exceeding $50,000) or via the District Court (for the sum between $50,000 and $1,000,000).

Is that mortgage can only be gained from licensed banks or finance companies?

The nature of mortgage is a charge, which confers a security to one who lends money to another. Therefore private loan by charge of property is certainly allowed, other than those gained from licensed banks or finance companies. Of course, the loan can only be occasional. License would be required for loan business.