Conveyancing – Hong Kong

Background

Land system in Hong Kong is unregistered land system. Land title is transferred by agreement. Registration of agreement is not registration of title. Land title subsists in title deeds.

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What does “Conveyancing” mean?

Conveyancing means sale and purchase of real property.

The procedure to sell or purchase a real property, is:

  • Preliminary Agreement — which is normally signed in an estate agent’s office before an estate agent. An initial deposit is paid, it is usually 5% of the purchase price.
  • Parties shall then retain solicitors, normally in separate representation, to prepare and sign a sale and purchase agreement, when 10% deposit is usually paid at this stage.

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  • Purchaser shall then arrange financing, Mortgage is executed.
  • Solicitors will then prepare assignment and signed by both parties and balance of the purchase price shall be paid.
  • Purchaser obtains possession of the property.
  • When the housing loan is repaid, a Discharge would be executed by the bank to release the property back to the owner.