Financial Literacy for Everyone

Financial Fortune Teller

Get a sneak peek into your financial future to see how well you are saving and planning for retirement.

Explore financial calculators

Can you afford a trip? How to save for a goal? Explore these calculators to help plan for your future.

Completing the Transaction

All the property hunting, negotiation and shopping for mortgage deals come together into one final step – the completion. Knowing the steps involved in closing the transaction will help you relax as you go through the completion.

Provisional Sale and Purchase Agreement
Once you have found a property, made an offer and the seller has accepted your offer, the seller's agent draws up an initial contract specifying the terms of the transaction. When you sign this contract, you have officially agreed to purchase the home and an initial deposit of between 1% and 3% of the agreed price of the property is payable to the seller. Consult your solicitor for advice if you are in doubt about the contract before you sign it. There are many small details that could make the difference between a good and a bad deal.

Sale and Purchase Agreement
The Sale and Purchase Agreement should be signed between the buyer and seller within 14 days of the signing of the provisional agreement. The Sale and Purchase Agreement is drafted by solicitors and includes more detailed terms. At the time of signing, the buyer is required to pay a further deposit, equivalent to 10% of the agreed price of the property, minus the amount of the initial deposit. In addition, the buyer is required to pay stamp duties.

Completion
After the Sale and Purchase Agreement had been signed by the parties, your solicitor will proceed to make preparations for completion of the transaction by the agreed date. Further due diligence, such as examining the title deeds of the property, will be conducted by your solicitor. If the results of the due diligence are deemed satisfactory, you are ready to assume ownership of the property on the designated date of completion. Before the big day, you need to ensure the funds to complete the transaction are in place. Make sure your application for the mortgage, if you are using one, has been approved and finalized by your lender.

Check you have necessary funds to cover legal fees, all the relevant taxes and the commission payment for the estate agent, if one was employed, in addition to the balance of the purchase price of the property.

Before the completion date, you should make a final inspection of the property. Your estate agent or solicitor can help you arrange the inspection with the seller.

Source: GovHK, Estate Agents Authority