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SRPA issues new Practice Note on financing plans offered by vendors or vendors' designated financing companies
      The Sales of First-hand Residential Properties Authority (SRPA) today (February 17) issued a new Practice Note (PN) to further enhance the transparency of the financing plans offered by vendors or vendors' designated financing companies to purchasers and enhance consumer protection. 
     The SRPA noted that vendors of first-hand residential properties will offer different kinds of financing plans (such as mortgage, charge or loan) to prospective purchasers by themselves or through their designated financing companies. The PN recommends that vendors provide prospective purchasers with relevant document(s) setting out information of the financing plan(s) and a copy of "Reminder to Prospective Purchasers" (a recommended template is in the Annex to the PN) before the signing of the preliminary agreement for sale and purchase of a specified residential property, if the prospective purchasers indicate to the vendors at the sales office an intention to apply for one or more of the financing plans offered by the vendors or designated financing companies as set out in any price lists. Also, vendors should remind prospective purchasers to directly enquire with the vendors or designated financing companies concerned if they have any doubts about details of the terms and conditions of the financing plan(s), approval conditions and application procedures.
     The SRPA advises prospective purchasers that they need to carefully read the details of the financing plans (including terms and conditions) listed in price lists and other related documents, and be always cautious about verbal undertaking. Only written agreements are binding. Prospective purchasers should also read the contractual documents carefully and seek legal advice if considered necessary before they sign any documents.
     The full text of the PN is available at the SRPA's website (www.srpa.gov.hk/en/practice-notes.html). The SRPA expects vendors to start taking on board the SRPA's advice as set out in the PN from March 17, 2023.
Ends/Friday, February 17, 2023
Issued at HKT 11:00
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