Contract To Sell With Assumption Of Mortgage Template for Hong Kong

The Contract to Sell with Assumption of Mortgage is utilized in Hong Kong real estate transactions where the buyer agrees to take over the seller's existing mortgage instead of obtaining new financing. This arrangement can be advantageous when the existing mortgage terms are favorable or when refinancing costs would be prohibitive. The document encompasses comprehensive provisions required under Hong Kong law, including property transfer terms, existing mortgage details, assumption conditions, mortgagee's consent requirements, and completion procedures. It's particularly relevant in scenarios where maintaining the existing mortgage structure benefits both parties and complies with Hong Kong banking and property regulations. The agreement must satisfy both property conveyancing requirements and banking regulations while protecting all parties' interests.

1. Parties: Identification of the Seller, Buyer, and current Mortgagee

2. Background: Context of the transaction, including current mortgage status and intention to transfer

3. Definitions: Key terms used throughout the agreement, including Property, Existing Mortgage, Completion Date, and Purchase Price

4. Sale and Purchase Agreement: Core agreement to sell and purchase the property, including purchase price and payment terms

5. Property Details: Detailed description of the property including lot number, address, and registered details

6. Existing Mortgage Details: Details of the current mortgage including outstanding amount, terms, and mortgagee information

7. Mortgage Assumption Terms: Terms and conditions for the assumption of the existing mortgage by the buyer

8. Conditions Precedent: Conditions that must be satisfied before completion, including mortgagee's consent

9. Completion Requirements: Requirements for completion including documents, payments, and procedures

10. Representations and Warranties: Statements of fact and promises by both parties regarding their capacity and the property

11. Costs and Stamp Duty: Allocation of transaction costs and stamp duty responsibilities

12. Default and Remedies: Consequences of default and available remedies for both parties

13. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction

14. Execution: Signature blocks for all parties including witnesses