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The Sales of First-hand Residential Properties Authority (SRPA) today (July 17) advised prospective purchasers of Mont Vert Phase I not to easily give up their right to view the properties they intend to purchase.
"Mont Vert Phase I is a completed phase of the development. It was issued with the occupation permit on March 10, 2014. Prospective purchasers should view the residential properties which they intend to purchase, or comparable residential properties, before signing the Preliminary Agreement for Sale and Purchase," the SRPA spokesman said.
According to the Residential Properties (First-hand Sales) Ordinance (the Ordinance), before selling a completed first-hand residential property to a person, the vendor must make that residential property available for viewing by that person. If it is not reasonably practicable for the vendor to make available that residential property to be viewed by that person, the vendor should make a comparable residential property in the phase available for viewing by that person. If the vendor considers it is not reasonably practicable for any such comparable residential property in the phase to be viewed by that person, and that person agrees in writing that the vendor is not required to make such a comparable residential property available for his viewing, the vendor then does not have to make such arrangements.
The SRPA observed that it is stipulated in the document containing the sales arrangements for the 260 first-hand residential properties of Mont Vert Phase I issued by the vendor of the Phase on July 17, 2014 that all of the registrants who will have submitted the Registration of Intent on or before July 25, 2014 will have to submit to the vendor the duly signed "No Viewing Agreement" on the first day of sale of the aforesaid first-hand residential properties, in order to be eligible for the balloting.
The SRPA considers that the aforementioned sales arrangements reflect that the vendor of Mont Vert Phase I does not have any intention at all to make any effort to make available any of the residential properties which the prospective purchasers intend to purchase, or make available any comparable residential properties, for viewing by prospective purchasers of the 260 first-hand residential properties. The SRPA considers this is why the vendor makes it a requirement across the board that all the registrants have to submit the duly signed "No Viewing Agreement" as a condition for being eligible for the balloting.
The SRPA considers the aforementioned sales arrangements a serious departure from the spirit of the Ordinance which requires that vendors must make the residential property which a person intends to purchase available for viewing by that person before the vendor sells the residential property to that person. Also, the SRPA considers the aforementioned sales arrangements seriously harming the interest of the prospective purchasers.
The SRPA has written to the vendor of the Phase to request the vendor to explain to the SRPA the reasons why it considers not reasonably practicable to make available the 260 residential properties for viewing by prospective purchasers, and the reasons why it considers not reasonably practicable to make available any of the other completed residential properties in the Phase as comparable residential properties for viewing by prospective purchasers.
According to the Ordinance, vendors who contravene the provisions relating to the viewing of property in completed development or phase commit an offence and are liable to a fine of $500,000.
According to the understanding of the SRPA, the vendor of Mont Vert Phase I will make available show flats for the Phase for viewing by prospective purchasers. The SRPA wishes to emphasise that, when offering to sell completed first-hand residential properties, vendors should not take it as an excuse that since they have made available show flats for viewing by prospective purchasers, they therefore do not have to make available the residential properties which prospective purchasers intend to purchase, or comparable residential properties, for viewing by the prospective purchasers.
The SRPA reminds prospective purchasers that the Ordinance does not prohibit vendors from making available show flats for viewing by the public or prospective purchasers when selling completed first-hand residential properties. That said, show flats on completed first-hand residential properties are not subject to requirements on show flats under the Ordinance.
Ends/Thursday, July 17, 2014
Issued at HKT 21:42
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