Process of purchase

OK, found the house, sorted out the money, found a solicitor.


Today i put the initial deposit down - 5% and do the initial agreement. Then what - can anyone help with the step by step process until you actually settle and move into the place?? Just so I am not looking like a complete dummy...

Dimac - you've done most of the hard work already - finding a flat you like. I looked at 23 before I found the right one for me.


As casey said, normally you have to stump up a further 5% of the agreed price, 14 days after your initual signing. Before you get to this second part, run through the agreement with your solicitor. In addtion, try and get all the previous transactions for the property in question - this may avoid some headaches later on. You agent should do this for you.

You may also request your solicitor to be present when you sign the second part.


I had my bank lined up before I signed the providional agreement. You can get arrangements in principle from your branch or pay a small fee (which will be refunded if you proceed) if you want a guarantee of loan amount. Hopefully you have checked with the bank that your negotiated purchase price is at or under the bank valuation, otherwise you'll have to stump up the difference.


At signing or the sales agreement, you'll agree on a completion date. No less than 4 weeks if you are getting a 70% mortgage, and around 5-6 if you are getting a high advance mortage. This will give you plenty of time to sort your finances.


Your soilicitor will do the rest for you, including asking for the stamp duty etc etc.


Ensure you get your agents and solicitors to do as much as possible, as as far as I'm concerned, thier commision fee is not justified!


all the best.

There is a useful calculator on this web page.


http://www.hongkonghomes.com/hong_kong_property/eng/index.htm


What is the 5% charge for S&P agreement, who is this payable to, and is it negotiable ?


How negotiable is the agency fee?

silver lining, with regard to negotiating the agency fee...

When you first view the apartment, the agent will give you something to sign to say you appoint him as agent (even if you have no interest whatsoever in the apartment). He will write in a fee of 1% (from each side) unless you have previously advised him that you won't pay so much. In practice, the overwhelming majority of transactions are 1% each side (buyer/seller). Look on the bright side - it's much more in most other countries even though HK agents are much harder working... they happily take your calls even at 10pm on a Sunday - try that with an agent in small town Australia or England!

Yes the other countries do charge a higher percentage - but the overall cost of the houses are not as much! (and usually is just the vendor who has to pay)


With regard to property agents fees - I negotiated the commission to .8% on a place I knew I would be purchasing - otherwise I just left it at the 1% when viewing properties.