Mortgage Deed on Real Property

A Two-party Mortgage is a standard form of mortgage between the Mortgagor (i.e. the Borrower) and the Mortgagee (i.e. the Lender) in relation to a mortgage of real property provided as security by the Mortgagor for the loan facility provided by the Lender.

Who pays the stamp duty in Hong Kong? And how much is paid?

The purchaser and seller are both responsible for paying the stamp duty. However, the purchaser will usually contract to pay the stamp duty in full. The table below shows the stamp duty tax rate for commercial properties, after 20 November 2020. More details on the amount payable can be found here.  Amount or value of … Read more

What is a Formal Sale and Purchase Agreement? Will I be bound to it?

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

What is a Provisional Sale and Purchase agreement? Is it binding?

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

What is due diligence in a commercial real estate transaction?

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