Provisional Sale And Purchase Agreement Hong Kong

By 11 Aprile 2021Senza categoria

There are no specific requirements or restrictions for non-resident businesses and individuals to hold or lend to real estate (including shares of companies that own real estate) in Hong Kong. Foreigners are allowed to acquire real estate directly. Non-Hong Kong persons are subject to payment of ad valorem stamp Duty (AVD) and stamp duty buyer (BSD). Under the Basic Law, no exchange control policy is applied in Hong Kong. Provisional agreements are not necessary, but they are often used in Hong Kong. They are also called provisional agreements. Most of the time, preliminary speeches are made by the real estate agent, who is often involved in the pre-agreement. This gives the real estate agent a direct contractual right under which he can recover commissions. The pre-agreement is usually a binding contract when the seller and buyer sign it and contains the following essential elements: If you and the potential buyer agree on a negotiated price, both parties will enter into an interim sale agreement. This is a legally binding contract that must be fully respected by the parties concerned. If the formal sale contract cannot be signed, the parties can rely on the interim agreement to pursue the contract or to claim damages.

There are no formal requirements for the content and structure of a purchase and sale contract. As a general rule, there are two types of GNP in a transaction: interim agreements and formal agreements. The name, buyer`s address, Hong Kong ID card number or other identity documents are indicated in order to correctly identify the buyer. (If the buyer is a limited company, provide the name, operating registration number and headquarters of the limited company.) If the buyer is not complete in accordance with the agreement, the seller has the right to withhold the paid down payment and, subsequently, the seller no longer has a right against the buyer. (Note, however, that some agreements may offer the alternative, that the seller has the right to impose a certain benefit, i.e. to compel the buyer to continue the purchase of the property in accordance with the terms of the agreement). Stamp duty (currently USD 100) must be paid on a provisional agreement to sell and purchase a residential property if the formal sale and purchase agreement is signed more than 14 days after the signing of the interim agreement.

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