Todd Bishop
Hong Kong developers have been selling new products by tendering and have become the focus of market participants. In response to a question from the Legislative Council Members, the Secretary for Transport and Housing, Mr. Stephen Chan, pointed out that in respect of the regulation of first-hand residential property sales, the Government has been adopting a three-pronged approach to the continuous improvement of compliance by the implementation of the relevant legislation. Deepen public awareness and ensure that consumers are protected when purchasing first-hand residential properties.
He pointed out that under section 67 of the “First-hand Residential Property Sales Ordinance” (the “Ordinance”) if a developer sells a first-hand residential property by tender, the part of the relevant third-party part of the Ordinance is not applicable. The developer is still required to comply with other requirements under the Ordinance, including the provision of sales brochures, documents containing sales arrangements and a register of transactions.
Regarding the enforcement of the legislation, Mr. Chan reiterated that the Government had pointed out earlier that the sales process of the first-hand residential properties which were sold by tender in the past was insufficiently transparent and the practice was not satisfactory. The Procurement of the First-hand Residential Property Sales Authority (RSB) has revealed that the sales practices and transaction details of the cases are insufficiently transparent and may contravene the First-hand Residential Property Sale Ordinance. The SFC is investigating the relevant cases and will strictly enforce the “Regulations” based on the evidence. It does not rule out prosecution. At the same time, the Estate Agents Authority (GPA) is conducting an investigation to ensure that estate agents strictly comply with the Estate Agents Ordinance and its guidelines when participating in tenders.
The SFC has filed prosecution against the seller for a case involving insufficient transparency in the transaction data. The case will be heard on July 9 this year.
The seller should list the details of the buyer’s payment terms
Mr. Chan also pointed out that according to section 61 of the First-hand Residential Property Sales Ordinance, the purpose of the development record book is to provide the public with information on the transaction of the project so that prospective buyers can understand the market situation and purchase one hand. Get accurate information and make informed decisions when you live in a residential property.
The SFC issued a “Reminder to the Industry” and a Frequently Asked Questions before asking the seller to list all the details of the payment terms in the transaction record of the residential development project and remind the seller if the discount is offered when selling the first-hand residential property. , gifts, financial offers or benefits (whether or not in cash) to the buyer, the seller should list the details of the payment terms agreed with the buyer for the purchase of the specified residential property.
In addition, the information contained in the transaction register should be complete and complete so that prospective purchasers must refer to other documents or information to find out the details of the relevant payment terms.
Committed to improving the transparency of property tendering
Mr. Chen said that the Lands Department has issued a “Letter to the Licensee” to the Estate Agents to remind them that regardless of the manner in which the developer sells their properties, the licensees are required to comply with the Estate Agents Ordinance and the Practice Notice issued by the Lands Bureau. Relevant guidelines. The Land Regulatory Bureau specifically reminds the licensee not to issue any first-hand residential property promotion materials sold in the form of tenders, including the information on the proposed bid price, without the written consent of the seller.
To enhance public understanding of the law, the SFC has also released a new promotional vocal tape on the 17th of this month, entitled “You need to know when you enter the tender to buy a flat”, to remind prospective purchasers to pay attention to the purchase of first-hand residential properties for sale by tender. local.
He stressed that the Government will continue to closely monitor the effectiveness of the above measures and the sale of first-hand residential properties which will be sold in the form of tenders. It will also adopt any practical measures to facilitate the sale of tenders and tenders in the form of one-handed flats. The property is on par.
