Document background
The Deposit On Purchase Agreement is a fundamental document in Hong Kong's property transaction process, typically used when a purchaser commits to buying a property and needs to formalize the deposit arrangement. This agreement is crucial in Hong Kong's fast-moving property market, where substantial deposits are common practice and proper documentation is essential for protecting all parties' interests. The document typically includes detailed terms about the deposit amount (usually 3-10% of the purchase price), payment schedule, conditions for forfeiture or return, and how the deposit relates to the final purchase completion. It must comply with Hong Kong's property laws and regulations, including stamp duty requirements and conveyancing practices. The agreement serves as a precursor to the formal Sale and Purchase Agreement and is particularly important in both residential and commercial property transactions.
