Property’s Matters
Ominous Property
  When murders, suicides, suspicious or natural deaths that occurred at a particular property, people would generally label it ominous. When you come across a property which is priced extraordinarily low, you probably want to know if someone has died in the property before you actively consider buying it. In Hong Kong, death in a property is not required to be registered at the Land Registry and disclosed by the property vendor. Local property agencies, residents and caretakers of the building might help you know about the gruesome past of a property. Some banks might have blacklisted this type of properties and would only approve small yet short-term mortgage loans for them.
Monetary Claims Against a Property
  When there are encumbrances attached to a property in the form of monetary claims, such as mortgages, claims by other parties, unpaid property management fees, unpaid taxes, or restrictive loan covenants, the transfer of title could be prevented. Your property agent and solicitor must inform you about any encumbrances found in the land search record or the tile deeds before you sign the agreement. To protect your interest and avoid subsequent disputes, you can add an addendum to the agreement by requesting the vendor to perform any necessary actions for the discharge of any encumbrances that are binding upon the property. The deposit could be held by the vendor’s solicitor as stakeholder before the encumbrances have been removed.
Building Orders Against a Property
  Encumbrances such as government orders for removal of unauthorized building works, repair works of buildings and maintenance of slopes may diminish the value of the property or even hamper the sale process. Your property agent or you can check the above information by conducting a land search at the Land Registry. You could negotiate with the vendor about the discharge of the encumbrances. The deposit could be held by the vendor’s solicitor as stakeholder before the encumbrances have been removed.
Illegal Use of a Property
  Criminal charges will be filed at the Land Registry against properties which have been used for an illegal purpose such as operation of a business for the purpose of prostitution, conducting illegal gambling activities and unlawful manufacture of a prohibited drug. Criminal activities in the past might still cause inconveniences and disturbance to the existing occupants, and might affect the sale and lease of the property in the future.
Owners’ Cooperation
  You must check whether there are lawsuits or underlying claims/liabilities against the Owners’ Corporation to avoid sharing responsibilities and costs after the purchase.