HK properties sales law takes effect

The Hong Kong Residential Properties (First-hand Sales) Ordinance, which enhances first-hand residential properties' sales arrangements and transactions' transparency, fairness and consumer protection, came into effect Monday.

Sales of First-hand Residential Properties Authority Director Eugene Fung said the authority would inspect property sales offices and show flats and examine sales brochures, price lists, advertisements and relevant documents, to ensure that they comply.

The ordinance sets out detailed requirements in relation to first-hand residential properties' sales brochures, price lists, show flats, transaction information disclosure, advertisements, sales arrangements and mandatory provisions for the Preliminary Agreement for Sale & Purchase and Agreement for Sale & Purchase.

It also addresses misrepresentation and dissemination of false or misleading information.

"The authority will look at all submitted documents and investigate if it suspects they have not complied with the new laws," Fung said. "In major cases that may seriously affect consumers' interest, the authority will inform the public as soon as possible so that prospective buyers may take a careful look before deciding," he added.

The authority will inform vendors through its website of minor technical defects that warrant extra attention, so that no vendors will make the same mistakes in future.

Fung also urged prospective buyers to read the sales brochure, price list and sales arrangements and to inspect the development in person.