What Is A Provisional Sales Agreement

The notary also guarantees the validity of the sale and can advise you on the most favourable contractual terms for your situation. For a sample of a temporary purchase and sale contract, please visit the Law Society of Hong Kong website. Please note that this model agreement is only for reference purposes and you must carefully consider any actual agreements with your agent or lawyer before signing it. Stamp duty (currently USD 100) must be paid on a provisional agreement to sell and purchase a residential property if the formal sale and purchase agreement is signed more than 14 days after the signing of the interim agreement. With respect to the services provided in connection with the sale and sale, the real estate agent has the right to collect an agreed and specified commission from the seller or buyer. The amount and payment of the commission are subject to the respective brokerage contracts concluded by the real estate agent with the seller or buyer.dem. A real estate agent who is a broker for both the seller and the buyer in a transaction and who has the right to collect commissions from both should inform the seller and buyer. The property is sold to the buyer “as we shall see.” The property is sold in the property at the time of signing the contract and delivered to the buyer. It should be noted that the sale on an “as is” basis does not allow the seller to disclose the existence of unauthorized changes or structures regarding the property. If the buyer does not accept these unauthorized structures/modifications, the buyer may, on this basis, challenge the ownership of the property.

It is also apparent from the judgment of the above case that the purchaser cannot be required to make the additional down payment if the provisional agreement contains .B clause containing, for example, “an additional down payment $X to be paid at the time of signing of the formal sale contract” if the subsequent formal contract is not signed. In order to avoid any dispute over the payment of the additional down payment, the parties may indicate the exact date of payment of a new deposit in the interim agreement. Another deposit – this is usually payable to the seller when signing a formal agreement for the sale and purchase (“formal agreement”) on a specific date or before a specific date (normally the first deposit and the additional deposit will add up to 10% of the price). However, if the property is in negative equity, the subsequent deposit should be made with the seller`s lawyers as representatives of interest to protect the buyer. The provisional agreement is often granted by a real estate agent and must at least include: The provisional sale contract also gives you a right of withdrawal for a period of 10 days from the signing. If you decide that you no longer wish to buy the property during this period, the seller returns the security deposit (which represents 10% of the sale price) that you gave them at the time of signing. After signing the interim sales contract, you have 10 days to terminate. If you make use of this right, the sums paid as collateral will be refunded and you are no longer liable to the seller. The name, address of the credit owner, Hong Kong ID card number or other identification documents are indicated in order to correctly identify the credit carrier. Real estate agents should check the Hong Kong Identity Card or the seller`s identification document using the name of the owner registered for the property in the land registry to ensure that the seller is the registered owner before ordering the seller to sign the agreement. (If the seller is a limited company, the name, registration number of the company and the head office of the corporation must be listed.) An interim sales contract is a binding agreement.

The agreement contains the names of the credit taker or seller and buyer.