Buyer can confirm the following property information through the Internet, real estate agents, developers and the owner(s):
Name of current property owner and his/her ownership right
Property
age, gross area and saleable
area of the property
Information of area and environment surrounding the property
Current property situation(owner occupied or leased)
Current usage of the property: whether the use of the property is specified as residential
Rates, Government rent, property maintenance cost and management fee,etc.: Should confirm if there is any payment in arrears of the property, otherwise buyer will be liable for any extra cost after completion
Illegal structure (eg. modified balcony) and maintenance order: Should check with the property agent and the owner whether there is any illegal structure or maintenance order. If so, buyer can seek banks advice if the property can be mortgaged
The appointment can be made in a way of "single agency" (i.e., the agent represents only the buyer) and dual agency (i.e. the agent represents both the buyer and the vendor)
Signing of an Estate Agency Agreement with the licensed estate agents; before signing the Estate Agency Agreement, buyer should understand the various terms, including validity period of the Agreement (usually three months) and agreed commission paid by buyer and seller (usually 1% each) and other special terms of the Buyer (if applicable)
Agent should provide the following essential information to the buyer upon viewing the flat:
1.
Current ownership of the property and subsisting encumbrances (i.e, mortgage and charge, building order or court order)
2.
Floor area of the property
3.
Year of completion
4.
User restriction
5.
Government Lease (unexpired term of the lease and right of renewal)
6.
Terms for proposed Government Lease
7.
Vendor's Description (e.g. whether the flat has been altered or whether the building is under any maintenance work with cost incurred)
Other points to note when viewing the flat:
The buyer should view the same flat at different time slots in order to identify any problems which may unveil due to environment and traffic change, such as noise, etc.
Sign an Estate Agency Agreement with the agent before visiting the flat
Avoid appointing more than one agent to view the same flat because the buyer may have to pay commission to all the appointed agents upon completion
Village houses often provide a better living environment. However, there are a few items you should consider when buying a village house:
Completed village house - Buyer is suggested to buy the completed village house with the Completion Certificate even though there are completed and uncompleted house available. The buyer can have a site visit to the property and examine if there is any illegal structures, unauthorized extensions or issues related to the safety of the internal structure
Legal document execution - Land search should be conducted and reviewed before signing the preliminary sale and purchase agreement to ensure the land premium has been settled and the property can be freely purchased or sold in the market
Mortgage arrangement -The mortgage approval of a village hosue is subject to property valuation, property age and property quality. The property valuation should be obtained before signing the preliminary sale and purchase agreement for a well financial planning. Banks usually provide mortgage to village house with Completion Certificate only
There is no formal definition for the "cursed" property, and there is no such record could be found in the Land Registry. "Cursed" property usually refers to a property where connected with some unpleasant incidents previously (such as suicide case or murder case), many people tend to avoid buying these properties. Therefore the property price and the property's marketability may be affected
To avoid buying a "cursed" property, the buyer should carefully check whether the property price is substantial lower than market average price. Secondly, buyer should check with the property owner, the agency, and also make an enquiry to the neighbourhood or the management office. Currently the "cursed" property lists are posted on the Internet, but just for reference only. Buyer can request inserting a term on the Sale and Purchase Agreement for possible claim afterwards, "if the property is involved in any of the event of suicide, murder and death, etc, buyer will reserve the right to terminate the transaction."
Before the property transaction, buyers should conduct a valuation for their properties to get an accurate assessment of the property's value
The property valuation result may affect the actual loan amount and the down-payment amount. Purchasers are advised to obtain a property valuation report prior to the signing the Preliminary Sales and Purchase Agreement, so that appropriate financial planning can be done
Free property valuation services are available online on the websites of major banks or institutions. Property transaction records are also available on some real estate agent websites
Usually, the initial deposit is around 3% to 5% of the purchase price. Under most circumstances, the initial deposit is payable simultaneously when the provisional agreement is signed, buyer should take note of the following details:
Is/are all owner(s) with title against the property agree on the transaction, purchaser can request the agent to provide an up-to-date Land Search Report to verify the vendor(s) title and encumbrance against the property
Initial deposit made with cheque, payable to the owner or the legal representative of the owner is recommended;
Clearly state the amount of initial deposit on the provisional agreement
A buyer should pay attention to when taking over a new sale flat:
The developer will send a property owners manual for their fill-in of any defect identified inside the flat. Buyer can make reference to the sales brochure and Sales and Purchase Agreement to check whether the building materials, facilities and electric compliances offered by the Developer fulfilled the agreement at time of purchase, and to follow up with the developer within a period
Buyer is advised to bring the camera when taking possession of the new flat. During the property inspection, pictures of the defects identified can be taken which will be any proof for the claim process
Checklist
for Property Inspection
Key
items for property examination can
be classified as follows:
Ceilings:
Are they flat? Any water marks
or cracks? Is the ceiling straight?
Walls: Are they flat? Any water marks, air bubbles or cracks? Any cavities within the walls? Are the walls flat and straight?
Floor: Is it flat? Is there a lot of space between two floor boards? Do the floor boards look inconsistent in color? Are there scratches or cracks? Do the floor boards make a strange sound when you step on them?
Doors: Is the doorbell installed properly? Are the doors and seals in good condition? Are the smoke-insulating strips on the kitchen door in good condition?
Windows: Are the glass panes, window frames and surface of the bay windows in good condition? Does the board in the bay windows make noise? Are there any powder-like substances that may indicate the windows leak?
Cupboards: Are there flaws on cupboard doors or laminates?
Kitchen range: Are the surface, the edge and the bottom of the kitchen range in good condition?
Sink: Are there flaws on the surface of the sink? Are the taps in good condition? Does the water drain away well? Are the drainage screens perfect?
Toilets: Are the toilets and toilet seats in good condition? Is the foot of each toilet perfectly waterproof? Are the water tanks and toilets leaky?
Bathtub: Is the bathtub or shower unit in good condition? Are there scratches on the surface of the bathtub? Are the tap and drainage outlet in good condition?
Bathroom mirrors: Are there any cracks, dark spots or scratches?
Water drainage on the floor: Does the water drain away well?
Main control of tap water: Is it in good condition?
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