Property authority issues note to improve transparency of financing plans for homebuyers
The authority reminded purchasers that only written agreements are binding.
The Sales of First-hand Residential Properties Authority has issued a new practice note with the aim of enhancing the transparency regarding financing plans offered by vendors and enhancing consumer protection.
The practice note recommends that vendors provide prospective purchasers with relevant documents that set out information about the financing plans. Purchasers should also receive a copy of “Reminder to Prospective Purchasers” before signing the preliminary agreement for sale and purchase of any residential property, the authority said.
Vendors are also directed to remind prospective purchasers to directly enquire with the vendors or designated financing companies if they have any doubts about details of the terms and conditions of the financing plans, approval conditions and application procedures.
Prospective purchasers are advised to carefully read the details of the financing plans listed in price lists and other related documents, and that only written agreements are binding.