Purchasing Flow
1. Create a budget
Learning about the market price of the property through newspapers, magazines, and real estate websites when buying a home formulate a target property for yourself, budget the property price that can be paid and all miscellaneous expenses.
2. Property Search
You can search for suitable properties through real estate agents or through newspapers, magazines, and real estate information websites.
3. Building inspection
Contact the owner or estate agent by phone or email to inspect the property of interest and observe the interior, exterior and surrounding environment in detail.
4. Gather information for analysis
You can collect information on the transaction volume and transaction price of properties of the same quality near the target property through newspapers, magazines or real estate information websites, and conduct an online search (www.iris.gov.hk) to understand the ownership and price of the property. Other important information, If an estate agent has already inspected the property, you can search for the relevant information through their help.
5. Mortgage Evaluation
If a home buyer needs to borrow a loan from a bank, they need to ask the bank for an initial valuation of the target property, the maximum loan percentage and the mortgage interest rate quotation.
Calculate your monthly repayment and various expenses through an online mortgage calculator to assess your monthly repayment ability.
6. Bargaining
Start negotiating the price with the owner, if the real estate agent can negotiate with the owner through them, and finally the two parties reach the conditions such as the price and the closing period, then the Provisional Sale & Purchase Agreement can be signed.
7. Payment fine
When signing a provisional sale and purchase agreement, it is usually necessary to immediately pay a deposit of 3-5% of the property price (commonly known as a fine order), and ask a lawyer to follow up and verify the contract. If the home buyer needs to obtain a loan from the bank, he must formally apply for a mortgage loan with the bank with a copy of the provisional sale and purchase agreement.
8. Pay for large orders
Generally, the seller hires a lawyer to draft a formal agreement for sale and purchase according to the provisions of the provisional sale and purchase agreement, and requires the approval of the buyer's representative lawyer. If there is no problem, the buyer can sign the formal sale and purchase agreement and pay the seller's lawyer. Generally, large orders account for 10-20% of the property price, depending on the agreement between the two parties and the length of the transaction period.
9. Registration of Sale and Purchase Agreement
After the seller receives the bulk order and signs the formal sale and purchase agreement, the buyer's lawyer can register the sale and purchase agreement with the Land Registry. Generally, the formal sale and purchase agreement will be signed 14 days after the preliminary sale and purchase agreement is signed.
10. Transfer of Ownership
Before the transaction of the property, it is necessary to sign the title transfer deed, commonly known as the assignment, and pay the balance of the transaction price. Generally, the transaction date will be set within 30-60 days after the formal sale and purchase agreement is signed, but it also depends on the agreement between the two parties and terms and closing period.
11. Building Inspection
The buyer can contact the seller to inspect the property directly or through an estate agent within a few days before the closing to see if there are any differences from the previous inspection.
12. Repossession
The seller hands over the property key to the buyer through a lawyer, the buyer officially repossesses the building, the buyer's lawyer makes a stamp (payment of tax), and goes to the Land Registry to register the assignment to complete the transaction.