Local Completed Residential Properties
On 5 September 2002, the Law Reform Commission published its report on Local Completed Residential Properties. The report makes separate recommendations in respect of completed properties sold in the second-hand market, and in respect of such properties sold first-hand by the original developer.
The law currently imposes few positive duties, if any, on a vendor of a second-hand completed property to disclose particulars of the property for sale. The report recommends the introduction of a Vendor's Information Form (VIF) for the sale of completed residential properties, which should be encouraged by the relevant professional bodies in Hong Kong. Only if the VIF cannot be introduced voluntarily in this way should the Government consider introducing legislation to make the VIF compulsory. The VIF should be filled in by the vendor and contain various particulars of the unit offered for sale. A vendor is required to make the VIF available when his unit is put on the market for sale, whether or not this is done through an estate agent.
The report also recommends a cooling-off period of three working days for sale of completed units in the second-hand market.
So far as completed units sold in the first-hand market are concerned, the report recommends that for "left-over" units (meaning those flats which were first marketed when uncompleted but are still left unsold by the time they are completed), developers should be required to make available the most recent sales brochures and a VIF. However, up-to-date sales brochures should always be made available for flats marketed for the first time after completion. All information in a sales brochure must be accurate at the time the completed property is offered for sale.
In contrast to the voluntary approach advocated in respect of the second-hand market, the report recommends that the recommendations made in respect of the first-hand market should be implemented by legislation.
|Press Release (PDF) (MS Word)|
|Executive Summary (PDF) (MS Word)|
|Report (PDF) (MS Word)|