Thursday, May 24, 2012

Hong Kong to impose new rules on property agents

The Estate Agents Authority (EAA) of Hong Kong will start implementing a new policy that requires property agents to provide accurate measurements of the net saleable area as well as the gross floor area (GFA) of secondary homes, starting 1 January.

Failure to comply could lead to the revocation of their licenses or fines of up to HK$300,000 (S$49,344).

The EAA noted that the information on the saleable area must be obtained from the Rating and Valuation Department or the Land Registry. However, if the two agencies cannot provide the data, agents themselves are expected to clearly provide the information.

In sales agreements, the information on saleable area should be as prominent as the GFA.

According to the new guidelines, the same practice would be required for secondary homes, said William Leung Wing-cheung, Chairman, Practice and Examination Committee at EAA.

The maximum penalty for breaching this regulation is a fine of HK$5 million (S$821,979) and imprisonment of up to seven years.

Currently, the government has set a law that requires all new homes to state clearly their net saleable area. The Residential Properties Bill which is for primary market home sales is being discussed in the Legislative Council.

The bill aims to make developers quote prices of new flats based on saleable area, and not on the GFA.

View the original article here

Source From Property Guru

No comments:

Post a Comment