Preliminary Sale And Purchase Agreement Template for Hong Kong

The Preliminary Sale and Purchase Agreement is a crucial document in Hong Kong property transactions that serves as the first formal step in the property transfer process. It is typically used immediately after parties reach a verbal agreement on the basic terms of the sale, but before the more detailed formal Agreement for Sale and Purchase is prepared by solicitors. This preliminary agreement, while shorter than the formal agreement, is legally binding and requires careful consideration as it triggers various legal and financial obligations, including stamp duty payments. The document must comply with Hong Kong property law requirements and typically includes essential information such as property details, purchase price, payment schedule, completion date, and basic terms and conditions. It is commonly used in both residential and commercial property transactions and forms the basis for the subsequent formal agreement.

1. Parties: Identification and details of the Vendor and Purchaser, including Hong Kong ID/passport numbers and addresses

2. Background: Context of the transaction and confirmation that the Vendor is the legal owner of the property

3. Definitions: Key terms used throughout the agreement including 'Property', 'Completion Date', 'Purchase Price', and other relevant terms

4. Property Details: Full legal description of the property including address, lot number, and registered details

5. Purchase Price: Agreed purchase price and payment schedule, including initial deposit, further deposit, and balance payment details

6. Payment Terms: Detailed breakdown of payment structure, payment methods, and timing requirements

7. Completion: Completion date, time, and location, plus procedures for completion

8. Vendor's Representations and Warranties: Standard warranties about property ownership, encumbrances, and condition

9. Purchaser's Representations and Warranties: Confirmations regarding purchase capacity and financial ability

10. Stamp Duty: Responsibilities for various stamp duties including Ad Valorem Stamp Duty, Special Stamp Duty, and Buyer's Stamp Duty

11. Solicitors: Appointment and roles of solicitors for both parties

12. Default: Consequences of default by either party and remedies available

13. Notices: Method and addresses for serving notices between parties

14. Governing Law: Confirmation that the agreement is governed by Hong Kong law