Developers must brace for the new property sales law

Public urged to study sales brochures.

The Residential Properties (First-hand Sales) Ordinance, which enhances first-hand residential properties' sales arrangements and transactions' transparency, fairness and consumer protection, comes into effect today.

Sales of First-hand Residential Properties Authority Director Eugene Fung says the authority will inspect property sales offices and show flats, and examine sales brochures, price lists, advertisements and relevant documents, to ensure that they comply.

The ordinance sets out detailed requirements in relation to first-hand residential properties' sales brochures, price lists, show flats, transaction information disclosure, advertisements, sales arrangements, and mandatory provisions for the Preliminary Agreement for Sale & Purchase and Agreement for Sale & Purchase.

It also addresses misrepresentation and dissemination of false or misleading information.

Mr Fung said the authority will look at all submitted documents and investigate if it suspects they have not complied with the new laws.

In major cases that may seriously affect consumers' interest, the authority will inform the public as soon as possible so that prospective buyers may take a careful look before deciding, he added.

The authority will inform vendors through its website of minor technical defects that warrant extra attention, so that no vendors will make the same mistakes in future.

The authority has received two first-hand residential developments' sales brochures, price lists and sales arrangements, he said. It has examined the documents and determined they have met the ordinance's requirements. Authority staff will inspect the two sites' sales offices and show flats.

He urged prospective buyers to read the sales brochure, price list and sales arrangements, and to inspect the development in person.