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Principal Sale And Purchase Agreement for Hong Kong

Principal Sale And Purchase Agreement Template for Hong Kong

A comprehensive legal document governed by Hong Kong law that formalizes the agreement between a vendor and purchaser for the sale and purchase of real property. This agreement sets out the complete terms and conditions of the transaction, including the purchase price, payment terms, completion requirements, warranties, and obligations of both parties. It incorporates specific Hong Kong legal requirements, including provisions for stamp duty, title verification, and property registration requirements under relevant Hong Kong ordinances.

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Principal Sale And Purchase Agreement

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What is a Principal Sale And Purchase Agreement?

The Principal Sale and Purchase Agreement is a fundamental legal document used in Hong Kong real estate transactions to formalize property transfers between parties. This document is essential for both residential and commercial property transactions in Hong Kong, incorporating specific requirements under Hong Kong property law, including the Conveyancing and Property Ordinance (Cap. 219) and related legislation. The agreement serves as the primary contract governing the entire transaction, detailing everything from property specifications and purchase price to completion procedures and party obligations. It is typically prepared after initial terms are agreed upon but before any deposit is paid, and forms the basis for the subsequent Assignment or other completion documents. The agreement must comply with Hong Kong's strict requirements regarding property transactions, including provisions for stamp duty, title verification, and registration.

What sections should be included in a Principal Sale And Purchase Agreement?

1. Parties: Identification and details of the Vendor and Purchaser

2. Background: Context of the transaction and relationship between the parties

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Sale and Purchase: Core agreement to sell and purchase the property

5. Purchase Price: Amount, payment terms, and method of payment

6. Completion: Completion date, requirements, and procedures

7. Property Title and Documents: Vendor's obligations regarding title and documentation

8. Vendor's Representations and Warranties: Standard warranties about property ownership and condition

9. Purchaser's Representations and Warranties: Confirmations regarding capacity and funding

10. Conditions Precedent: Conditions that must be satisfied before completion

11. Pre-Completion Obligations: Parties' obligations between exchange and completion

12. Default and Termination: Consequences of default and termination rights

13. Stamp Duty: Responsibilities for stamp duty payment

14. Notices: Process for serving notices between parties

15. General Provisions: Standard boilerplate clauses including governing law

What sections are optional to include in a Principal Sale And Purchase Agreement?

1. Mortgage Arrangements: Include when purchaser requires mortgage financing

2. Vacant Possession: Include when property is sold with vacant possession

3. Tenancy Arrangements: Include when property is sold subject to existing tenancies

4. Property Management: Include for properties in managed developments

5. Developer's Consent: Include for properties still under initial sale restrictions

6. Tax Indemnity: Include for commercial properties or special tax circumstances

7. Environmental Matters: Include for industrial properties or known environmental issues

8. Planning Permissions: Include when specific use permissions are relevant

9. Assignment Restrictions: Include when there are restrictions on future transfers

What schedules should be included in a Principal Sale And Purchase Agreement?

1. Property Description: Detailed description of the property including lot number and address

2. Purchase Price Payment Schedule: Breakdown of payment installments and timing

3. Title Documents: List of title documents and encumbrances

4. Completion Requirements: Detailed list of documents required for completion

5. Existing Tenancies: Details of any existing tenancy agreements

6. Fixtures and Fittings: Inventory of included and excluded items

7. Property Management Details: Management fees and special fund contributions

8. Outstanding Orders: Any building orders or notices affecting the property

9. Form of Assignment: Agreed form of assignment to be executed at completion

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Document Type

Evaluation Form

Cost

Free to use
Relevant legal definitions








































Clauses




































Relevant Industries

Real Estate

Property Development

Banking and Finance

Legal Services

Property Management

Construction

Commercial Property

Residential Property

Industrial Property

Retail Property

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Corporate Secretarial

Finance

Operations

Risk Management

Business Development

Investment

Relevant Roles

Property Lawyer

Real Estate Agent

Property Manager

Legal Counsel

Conveyancing Manager

Commercial Director

Property Developer

Bank Manager

Compliance Officer

Real Estate Investment Manager

Property Acquisition Manager

Legal Director

Transaction Manager

Real Estate Portfolio Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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