A Formal Sale and Purchase Agreement (SPA) is a legally binding contract that outlines the terms and conditions agreed by the parties to the agreement i.e. the purchaser and seller of the property. The Conveyancing and Property Ordinance requires all contracts for sale of land (including house/property/building) to be made in writing to be enforced … Read more
A Sale and Purchase Agreement (SPA) is an agreement signed and agreed upon by both the seller and purchaser regarding the terms of the purchase. The provisional agreement is prepared by the estate agent and is signed by both the purchaser and seller. The agreement contains the preliminary terms of the sale of the property … Read more
Property due diligence is a fact-finding process done by the purchaser, to ensure there are no legal and/or financial concerns relating to the property. The purchaser would usually instruct a lawyer to conduct property due diligence, and the lawyer should inform them of any encumbrances related to the property. An encumbrance is anything that can … Read more
The process of selling/ purchasing a property is complicated, and generally speaking, there are 5 main steps associated with the process. However, this is a very broad overview of the sale/ purchase process of a property, and each transaction will be different, so you should consult your estate agent or lawyer if you are unsure … Read more
As per the Landlord and Tenant (Consolidation) (Amendment) Ordinance 2004, the tenant does not have a right to continue to occupy the property after the expiry of a commercial lease. Returning the property At the end of the lease, a tenant should return the property to the landlord in the original handover condition at the … Read more
Normally, commercial leases do not have a break clause in Hong Kong. However, if the lease agreement contains a termination clause then a tenancy may be brought to an end by the landlord due to: Non-payment of rent Breach of agreement by tenant Sale/development of property To exercise this right, the landlord will have to … Read more
Mostly, commercial leases provide an option to the tenant to renew an existing tenancy. This option to renew gives the tenant a right to continue to rent the property after the expiry of the existing tenancy. However, in absence of such an option to renew, you must negotiate a new lease before the expiration of … Read more
When entering into a commercial lease, there are initial costs that you, as the tenant, must pay when signing a lease. Additionally there are on-going costs a tenant must pay when they are leasing the property, and it will depend on the terms of the lease. Initial costs Security deposits The tenant needs to pay … Read more
There are 2 main differences between a Tenancy Agreement and a Lease Agreement. Length/ period of tenancy A Lease is a document that creates a fixed term tenancy for more than 3 years. To execute the lease, there must be a deed, meaning that the agreement has to be signed, sealed and the parties should … Read more
When you decide that you’d want to open a physical store, have a work office or find a place to store your company’s inventory, you may choose to lease a property. A commercial lease is a contract between the landlord and the business to lease a property for business purposes. It is a complicated document … Read more