Document background
The Letter of Agreement Between Buyer and Seller of Land is a crucial document in Hong Kong's property transaction process, typically used as the first formal step in documenting a land sale. This document type is particularly important in Hong Kong's dynamic real estate market, where property transactions are subject to specific legal requirements and practices under the territory's leasehold system. It serves as a binding agreement that outlines the fundamental terms of the transaction, including property details, price, payment schedule, and completion arrangements. The document is commonly used before the preparation of a formal Sale and Purchase Agreement, especially in situations requiring quick documentation of agreed terms. It must comply with Hong Kong's property laws, including the Conveyancing and Property Ordinance and Land Registration Ordinance, and typically includes provisions for stamp duty and registration requirements. This type of agreement is essential for both private and commercial land transactions, providing a clear framework for the parties' obligations and rights.
