Copy of due diligence report(s)

In order to have a sufficient understanding of the background of the vendor and the uncompleted properties situated outside Hong Kong (“UPOH”), licensed property agents must perform due diligence on vendor and the UPOH before they participate in the sale or the promotional activities for such properties. Licensed property agents are required to obtain and provide the purchasers with a copy of due diligence report(s), which must be issued by a professional person (e.g. practising lawyer, accountant or surveyor), financial institution (e.g. bank, finance company) and/or government authority (e.g. government department, consulate, notary office) in the place where the UPOH are situated or the vendor operates or is incorporated, to confirm:

  • that the vendor is in existence and legally entitled to develop and sell the UPOH;
  • the vendor’s source of funds/financial arrangement with regard to the completion of the UPOH; and
  • the following key information of the development of which the UPOH form part:
    • Address;
    • Location;
    • Tenure;
    • Development permit or approval issued by the relevant authority;
    • Current ownership;
    • Subsisting encumbrances (e.g. undischarged mortgages, outstanding claims or litigation);
    • Restrictions on alienation (if any).

Copy of the due diligence report(s) must be issued and provided to the purchasers in either Chinese or English. If the report(s) is/are issued in other languages, a translation in either Chinese or English must be provided.