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Home Advice Tips

Know about buying a property


		The neighbourhood

		Use of property

		Government Lease (Land Grant)

		Property area

The neighbourhood

Make an on-site visit to get to know the neighbourhood:
No matter it is a pre-sale or an existing property, you should make an on-site visit to check out the public facilities in place, such as railway stations and other public transport interchanges, schools, parks, public car parks, hospitals, waste collection points and cemeteries, etc. Watch out for any noise or other environmental pollution threats.

Pre-sale property – The sales brochure shall include the details of all public facilities in the surrounding area and their anticipated completion dates, as well as the plans for and uses of different sections of the development. If in doubt, you should ask the developer for further details.

Find out the future development plans of the district:
For details about the zone planning and the future development of the major road system, you may obtain the relevant information from the following channels:

1.	The Outline Zoning Plan or the Development Permission Area Plan for the relevant district at the Planning Enquiry Counters of the Planning Department (17/F North Point Government Offices, 333 Java Road, North Point, or 14/F Sha Tin Government Offices, 1 Sheung Wo Che Road, Sha Tin);
2.	The Outline Zoning Plan for the relevant district at the Lands Department (23/F North Point Government Offices, 333 Java Road, North Point); or
3.	Visit the Statutory Planning Portal (www.ozp.lpb.gov.hk/default.aspx)

Use of property

Government Lease (Land Grant):
Use restrictions of the land are laid down.

Occupation Permit and the Deed of Mutual Covenant:
Use restrictions of the flat are laid down. A property for non-domestic purposes may not be used for domestic purposes, and vice versa.

First-hand property:
The sales brochure should set out the restrictions on the use of the property. If in doubt, you should ask the developer for further details.

Second-hand property:
Before signing a provisional or formal sale and purchase agreement, carefully inspect the condition of the property to see:

	If there are any additions or alterations to the structure of the property.
	If the property occupies any common area.

Government Lease (Land Grant)

Before signing a sale and purchase agreement, you should cousult your solicitor about the terms for renewing the Government Lease (Land Grant).
	Renewable Government Leases: They may be renewed without payment of any land premium, but are subject to payment of a new yearly government rent, which is equivalent to 3% of the rateable value of the property for the year concerned.
	Government Leases for the New Territories: Those Government Leases expiring between the effective date of the Sino-British Joint Declaration (i.e. 27 May 1985) and 30 June 1997 with no right of renewal (i.e. most Government Leases in the New Territories) may be extended to no later than 30 June 2047, subject to payment of a yearly government rent equivalent to 3% of the rateable value of the property for the year concerned upon the commencement date of the extended term. Important: Given that a property owner is liable to pay all government rent, including any accumulated balance in arrears, you should engage a solicitor to seek professional advice on matters relating to such payments (including the respective legal obligations of the seller and the buyer in relation to the amount payable, accumulated balance in arrears or advance payment of government rent). You may also check with the Lands Department or the Rating and Valuation Department about any outstanding government rent.

Property area

Gross floor area:
This normally refers to the sum of the property's saleable area, its apportioned share of the common areas and any other area which is for the exclusive use of the buyer.

Saleable area:
commonly called "usable area".

First-hand property:
The "saleable area" mentioned in sales brochures normally includes the areas occupied by bay windows, balcony and air-conditioner spaces. Hence, one should find out the areas of such spaces and their aggregate proportion to the total saleable area (it may be as high as 5%-10%) for a better idea of the internal floor area available and the actual "price per square foot".

Second-hand property:
Check out the "saleable area" with the property agent and ask for the details of the calculation or take onsite measurement on your own to make sure if the bay windows, balcony and air conditioner spaces are included.ase agreement, carefully inspect the condition of the property to see:

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