Most Up-to-date & Most Complete FREE Real Estate Information, Property Listings, & Transaction Records!

MSN Property Channel | Hong Kong Luxury Portal | CyberTalk | Recruit Online | Agent Login

Common Problems

Village houses have become a popular choice among homeowners because of its rural location. Away from the hustle and bustle of the city, residents may enjoy the tranquility of the Nature and a peace of mind. The highly usable partition, low building density in the neighborhood and the freedom to keep their own pets are but a few advantages of village houses. However, the purchase of village houses differs from any other properties. The following are some common problems for reference:

	Common Problems	Points to Note
1.	Ambiguous Entitlement – buyers must verify the entitlement of the village house to ensure that the transaction is being done with the genuine owner and that the address of the house falls within the lot area assigned by the government.	Buyers may request the selling party to submit the lease or grant issued by the government. In the case that rooftop, garden and other buildings are included in the village house, one should verify whether such construction is unlawful and covered by the lease.
2.	The assignment of land and village houses is restricted, e.g. the requirement of premium payment etc. According to the law, no village house shall be assigned in the market freely without paying the premium	Buyers should read the lease or Land Grant carefully to verify whether any terms of restrictions are provided in the documents.
3.	The Village House is in violation of terms of development specified in the lease, new grant or building license	The buyer or the legal representative shall search at the Land Registry and request the selling party to submit all relevant documents before signing the sale and purchase agreement.
4.	The Village House fails to apply for exemption because the completed property exceeds the area of the lot or mildly violates the relevant regulations.	Buyers may verify whether the property is provided with effective government documents, e.g. Certificate of Compliance, Assignment, title deed of a subdivided flat and Certificate of Exemption. By doing so one could ensure that the granting and building process, building structure are lawful and safe so that he/she may alienate it freely in the future.
5.	Ambiguous rights of road usage use or lacking a path leading to the house	Buyers may enquire the Lands Department through the property agency or surveyor
6.	Building a Village House before obtaining approval of the government bodies	Avoid purchasing uncompleted village houses
7.	Uncompleted development of Village House	Buyers can inspect the completed village house in person and such purchase would be more secure. Hence buyers should avoid participating in the pre-sale of uncompleted village house.
8.	The bank refuses to offer full mortgage	Most banks remain conservative in valuating village houses. Even if a full valuation is offered, the bank may not a mortgage of 70% of the property price (normally a 50-60% mortgage will be offered). Therefore, before purchasing a village house and signing a provisional agreement, buyers should obtain a valuation of the property from the bank and enquire about the highest possible mortgage rate.

Others

1.	Plants and trees and commonly found around village houses and insects tend to breed in such areas. Also, most residents of village houses will keep their own pets, thus families with children shall pay extra attention to this aspect.
2.	If the village house is located in the low-lying areas or nearby the slope, one should be aware of the maintenance and safety of the neighboring drainage and slopes. Floods and landslides may occur in rain seasons.
3.	Residents should check to see if the drinking water in the property is provided by the nearby wells or the public standpipe. Well water may not be 100% safe even after boiling.
4.	Most village houses are located in the rural area and less accessible. Buyers should assess the commuting time and costs carefully. Village houses located in remote areas may fail to receive signals of mobile phones, free television and Cable TV.
5.	The process and procedure of village house transaction differs from most properties. To fully protect one’s rights, the buyer must first seek professional legal advice and hire a lawyer experienced in the sale and purchase of village houses to go through the lease carefully before making a purchase.

	Homeowners may also refer to the Lands Department’s pamphlet ‘The Purchase of a Village House in the New Territories’ or enquire the Lands Department directly through the following means: Address: 20/F North Point Government Offices, 333 Java Road, North Point, Hong Kong Tel:: 2525 6694 Fax: 2868 4707 Website: http://www.landsd.gov.hk/tc/about/welcome.htm