Assignment vs Sale and Purchase Agreement

Posted by tsuiwah (316 days ago)

I am doing some research on property transactions and was hoping someone could explain the difference between assignment and sale and purchase agreements, as used in the following link

http://www.info.gov.hk/gia/general/200707/05/P200707050156.htm

Which document confirms the closing of a property purchase, if I were a buyer. Thanks.

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Posted by Havefaith (316 days ago)

What are your concerns?

Posted by Christian_Moore (316 days ago)

The 2nd one you sign at the solicitors office is the one you can't get out of. It's commonly called the formal agreement (Sale and Purchase) the first one is the provisional.

Posted by tsuiwah (316 days ago)

thanks

Posted by Havefaith (316 days ago)

The first one you sign (the preliminary P & S) is already a legally binding document. You are bound by all of the terms and conditions in the preliminary - not from the time of the formal one.
In fact, equity interest in the property passes at the time of the preliminary. However, if the vendor backs out of the preliminary, you can not "make" them sell the property to you - Court can order specific performance in a property deal.

It depends on what your concerns are - before a more elaborate answer can be given.

Posted by iso-no-awabi (316 days ago)

A sale and purchase agreement is the contract whereby you commit yourself to buy or sell, depending on whether you are the buyer or the seller.

An assignment is what you get at closing. Closing is an American term. Locally, they call it completion. The assignment is the document that actually transfers legal title to you.

Posted by walkup (315 days ago)

When you sign even the preliminary agreement and pay as little as 3% (which means another 7% at the time of signing the formal agreement) you are in and cannot mess around. Lets say you change your mind after the prelim. You lose the 3% plus must pay another 3% penalty plus agent fees plus legal fees. Yes you can walk away....with a big hole in your pocket.

Posted by ken (313 days ago)

You can find answers to this main question (and many others regarding property tranactions here in HK) through these links >
http://www.eaa.org.hk/publications/pub_Land_Search.htm and
http://www.eaa.org.hk/publications/pub_conveyancing.htm