Ees Mortagefindamortgage Y Mortgage Find A Mortgage 0 Szh 1 Mortgage Find A Mortgage HUZANG CONSULTANCY LAW FIRM, HONG KONG LAWYERS & NOTARY PUBLIC

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Our conveyancing legal team stands ready to assist you in completing the title acquisition of the property you intend to purchase. We have extensive experience and skill sets on dealing with purchase of houses, apartments, commercial properties such as offices and factories.

Below we have some helpful information on buying real estate in Hong Kong and what the process involves. Our legal team can guide you through the whole process very simply so you that you do not unwittingly fall into any traps due to a lack of understanding.

Are there restrictions on foreign ownership?

There are NO restrictions. Foreigners are permitted to own any land or properties in Hong Kong without any restrictions.

What are my ownership options?

The nature of ownership is not freehold but rather a long leasehold. For example, land situate in the New Territories has a lease term up until year 2047. In Hong Kong, you have the option to buy as an individual (including joint names with your spouse) or through a corporation. For large projects, its best to own property through a Hong Kong corporation.

Step One: Confirm the title

People usually find a property through an estate agent. On finishing negotiation, the estate agent will arrange you to pay an initial deposit (which is usually up to 4% of the purchase price) and to sign a provisional agreement for sale and purchase with the seller. A provisional agreement for sale and purchase consists of pre-printed standard terms widely adopted in the property market.

Before the signing, the first thing you need to do is confirm the legal owner of the property. This is done by making a title search at the Land Registry which is a Government department deposited with all property instruments on land. Either the estate agent or your lawyer may do that on your behalf.

Step Two: Checking the Title

Unlike many other countries, Hong Kong does not practise title registration. Therefore, owner's title is not proved by a title certificate. To ascertain the title, you need a conveyancing lawyer to investigate the title by perusing all instruments relating to the property you intend to purchase. Title investigation is usually done by your lawyer after the signing of the formal agreement for sale and purchase.

Step Three: Signing of Formal Agreement for Sale and Purchase

After you have signed the provisional agreement for sale and purchase, the estate agent will help you to pass its copy to your lawyer. Your lawyer will then contact the seller's lawyer. They will negotiate and agree on the terms of the formal agreement for sale and purchase. After agreement, your lawyer will arrange you to sign it and at the same time arrange you to pay the balance of deposit. By this stage, you will have paid a sum equal to 10% of the property price.

Step Four: Registration of the Formal Agreement for Sale and Purchase

Your lawyer will cause the registration of the formal agreement for sale and purchase at the Land Registry to protect your interest in the property.

Your lawyer will eventually receive the title instruments from the seller's lawyer. He will check the title and give advice you on its title aspect. He may do updated search at the Land Registry if necessary and raise title questions to the seller's lawyer to answer.

Getting clean title to property can be a problem and therefore you need an experienced conveyancing lawyer.

Step Five: Deed Execution: Assignment for Transfer of Title

Once you are satisfied that the title is in order you will sign an assignment with the seller with the arrangement by your lawyer. An assignment is a deed which helps to transfer the property's title to you. You arrange for payment by arranging financing.

Step Six: Transfer the Funds

Purchase price is paid by cheques drawn at your lawyer's bank account. Your lawyer will arrange with you to make sure that your money is available in their account to pay for you by their cheques. The safest thing is pay your lawyer the money several days before the completion date to enable clearance of the fund. This is extremely important in Hong Kong because non-payment before the agreed completion time on the completion date will mean your breach of the agreement. Breach will result in loss of the deposit and a seller's claim for other losses. When your lawyer has paid the purchase price for you in full to the seller, the seller will send the keys of the property to your lawyer to enable you to take possession of it.

Step Seven: Register the Assignment at the Land Registry

Your lawyer will do this for you in order to protect your interest in the property. Once the registration process is completed, your lawyers will give you the registered deeds and the property will be yours. In case your purchase is financed by a bank's mortgage, the registered deeds will be passed to the bank for their custody as a lending security.

Transaction Costs: Commission and Legal Cost

Real estate agent commissions typically 1% of the price and are paid by the seller and the buyer each. The legal fee to your lawyer is by agreement. There is no standard fee.  Agree the fee with your lawyer before you appoint them to deal with the conveyance. The buyer must pay the expenses registering the new deeds. The amount is fixed by the Government. For example, it is $500 to register a mortgage deed. The same fee amount applies to an assignment.

Government Tax: Stamp Duty

You have to pay the Government stamp duty on the transaction.Property below $2,000,000 is $100 only. If you let a property to a tenant, you have to pay the property tax on the rental income. However, there is no capital tax in Hong Kong.

Financing

It is easy to get a mortgage in Hong Kong if you have an income. Local financing is widely available for foreign residents. Many banks in Hong Kong are extremely active in the mortgage loan markets. They offer terms to home buyers with competitive rates. The loan term can be as long as up to 25 years.

PROPERTY HOTLINE: 3693-1500

What is a will?

A will is a legal document you use to leave property to close family members, friends, or charities. In your will, you name beneficiaries to inherit your property, an executor to wrap up your estate, and guardians to care for your young children. You can set up a trust for money inherited by children. You can also forgive debts owed to you and state how you want your debts, expenses, and taxes to be paid.

What can I do with a Will?

With a Will you can:

• Name beneficiaries (and alternate beneficiaries) to inherit your property.
• Name a guardian to care for your young children.
• Create a trust or a custodianship and choose an adult to manage your children's
• State how your debts, expenses, and taxes are to be paid.
• Name an executor to carry out the terms of your will.

How much does a Will cost?

$1000 to $15000 depending on complexity.

What information do I need to make my will?

It will be easier to make your will if you have gathered some information first:

• a rough inventory of your property (but if you plan to leave everything to one or a few people, you can skip this)
• a list of beneficiaries -- that is, the people who will get your property
• a list of alternate beneficiaries -- the people who will inherit your property if your first-choice beneficiary dies before you
• if you have young children, a list of your first and second choices for guardian
• a list of your first and second choices for executor

How long will it take to make my will?

You could make a very basic will in just a few minutes. But a will is an important document; don't rush. Put aside an hour or two to think about your wishes and make your will.

When do I pay?

When you have decided to instruct us to prepare the will and given us your instructions on its content.

What do I do with my completed will?

We shall give the completed will to you after you have signed it and witnessed by two witnesses provided by us. Store this original document in a safe place, such as a bank safety box.

Can I make copies of my completed will?

It's fine to give a copy of your will to your executor or other loved ones for informational purposes.

Do not sign more than one copy of the will. Doing so creates more than one original document and could cause confusion after your death.

What other estate planning documents might I need?

In addition to a will, you might consider making: a living trust (whose main advantage is to avoid probate court proceedings after your death) and a power of attorney (to allow a trusted person to arrange your affairs if you can't).

Is it safe to make a will without a lawyer?

Home-made wills are common in Western countries. Because a will is a very important document, a will prepared by a lawyer will be more safe. It is cheap and convenient to prepare a will in Hong Kong.

Is a simple will enough for me?

It's always fine to make a simple will. Simplicity will create the least uncertainty. But there are some situations in which you may need more than a simple will and should get expert advice or, at the least, investigate your options. For example:

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