What Is A Provisional Sales Agreement
If the property you wish to buy is sold as part of a conventional condo, the seller must provide additional documents at the same time as the provisional sales contract: a provisional sale contract is a binding agreement. The agreement contains the names of the credit taker or seller and buyer. It also contains the addresses of both parties and the number of ID cards in Hong Kong. This agreement describes the address of the property, the price of the property, the amount of the deposit, the method of payment and the date of delivery of the vacant property. It also contains many clauses that contain the terms of the agreement, including liability issues, standard guidelines and the real estate agent`s commission. These agreements are used between a seller and a potential buyer when buying a property as soon as a negotiated price is agreed. It is an agreement for one party to sell the property to another party. If one party cannot sign the contract, the other party has the right to continue or sue the other party for damages. As noted in an appeal procedure (see Keung – Another v Sunny Way Limited), most interim purchase and sale contracts existed as an «escape clause». An «escape clause» is a clause that allows a party wishing to terminate the transaction (i.e. terminate the agreement) to «buy its exit door» within a short period of time after the provisional agreement has been signed.
In the case of a seller who wishes to resign, he agrees to return the first down payment to the buyer, double an equivalent amount to be paid to the buyer (to pay the «double down payment»). In the case of a buyer who wishes to resign, he renounces the first deposit. If one of the parties invokes the escape clause, that party must do so in strict compliance within the time limit set out in the provisional agreement. The special conditions agreed between the parties must be specified in the agreement, z.B if the purchase price contains a list of furniture or if the seller allows the buyer to enter the property before the completion of the decoration, or if the seller or buyer must bear the costs of repairing/renovating public spaces or facilities required by an order/notification issued by the competent authority or registered owners before completion. The interim agreement is often submitted by a real estate agent and must at least include the following: the property is sold «as seen» to the buyer. 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.