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Regarding the report in a newspaper today (May 5) that the vendor of Full Art Court at Kweilin Street may have contravened the Residential Properties (First-hand Sales) Ordinance in the sale of the residential properties in the development, the Sales of First-hand Residential Properties Authority made the following response:
The Sales of First-hand Residential Properties Authority (SRPA) is deeply concerned about the case and has commenced investigation.
The SRPA has conducted a search on the records of the instruments relating to the development as registered in the Land Registry. The SRPA's preliminary view is that, as at April 29, 2013, when the Ordinance came into full implementation, those residential properties in the development which were owned by the owner of the development were first-hand residential properties as defined by the Ordinance.
Information available currently does not indicate that the Ordinance does not apply to those first-hand residential properties or that the sales of those properties fall under any of the "exception" situations as set out in the Ordinance. The vendor has to comply with the various requirements under the Ordinance when it offers to sell or sells those residential properties on or after April 29, 2013.
The SRPA will follow up the case seriously and will take enforcement actions against the vendor for not having complied with the requirements of the Ordinance when offering to sell or selling those first-hand residential properties.
The Ordinance applies to the sale of all types of first-hand residential properties, except those to which the Ordinance does not apply or for those exception situations as set out in the Ordinance.
When offering to sell, or selling, first-hand residential properties to which the Ordinance applies, vendors will have to make available the sales brochure, price list(s), document(s) containing the sales arrangements and a register of transactions. The preliminary agreement for sale and purchase and the agreement for sale and purchase must contain the mandatory provisions as specified in the Ordinance. Also, the advertisements must comply with the requirements of the Ordinance.
Contravention of any of the relevant requirements in the Ordinance aforementioned constitutes a criminal offence. For example, a vendor who has not made available to the general public the sales brochure or has not made it available during a period of at least seven days before the date of sale is liable to a fine of $1 million upon conviction. Also, a vendor who has not made available to the general public a price list or has not made it available during a period of at least three days before a date of sale is liable to a fine of $1 million upon conviction.
Estate agents are advised to verify with the vendor if they suspect that the Ordinance applies to a residential property being offered for sale by a vendor but the vendor does not follow the requirements of the Ordinance. If the vendor cannot confirm that the Ordinance does not apply to the residential property, estate agents should not get involved in the estate agency work. This is to safeguard their interests as well as the interests of their purchaser clients.
The SRPA advises prospective purchasers to seek information from the vendors or estate agents on the first-hand residential properties which they wish to purchase, if the vendors have not made available sales documents as required under the Ordinance, in order to safeguard their own interests.
Ends/Monday, May 5, 2014
Issued at HKT 16:57
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