Seeking Info on how a home purchase works.

Hey guys,


As I've mentioned in a previous thread posted a few months ago, I plan on buying a property at the end of this year or into 2015 (whenever the prices for a flat 650sq ft flat finally come back to reasonable prices) but I'm still a bit fussy over the details of an actual transaction.


From what i've figured out, you need to find a seller (obviously), a bank to give you a mortgage, a lawyer for stamd duties and general contract arrangements and a real estate agent i guess..


What i'm not to clear about is the sequence of these things. Do I first find a seller, get a contract and then find a mortgage? or do I find a mortgage first? I don't know...


thanks!

first, you dont need an agent necessarily, it's just that many transactions in hong kong are indeed done through an agent. but it's not a must.


here's the sequence how i would do if i were you:

1. check the HSBC (or other banks) mortgage apps on their websites to understand what you can afford

2. check hsbc and other banks prices for mortgages (or check mreferral) (1&2 go hand in hand)

3. check with a typical bank (hsbc) on what documentation they need for an application and prepare all necessary docs

4. find a lawyer and call them up to ensure they do property transactions

5. find a seller (directly or through an agent)

6. get a draft of the prelim purchase agreement and show it to your lawyer

7. if no objections, sign the preliminary purchase agreement with 5-10% down and which gives you 30-60 days to confirm/close the transaction (5%,30days is common)

8. then take that prelim agreement to a bank and check what mortgage they would offer at what price (chose more than one bank)

9. one month later and assuming the lawyer is happy, sign the formal purchase agreement

10. take that to the banks for formal application of the mortgage

11. then settle at whatever final completion date you agree in the formal purchase agreement

http://www.onc.hk/pub/oncfile/publication/property/0905_EN_Property_Transaction_HK.pdf

http://www.eaa.org.hk/Home_original/Publications/MonographConveyancing/tabid/212/language/en-US/Default.aspx


two good links too

thx man