Practical tips about the top ten thematic topics that smart consumers should pay attention to during property transactions or appointing estate agents.
About the Property’s Permitted Use
The Estate Agents Ordinance stipulates that an estate agent is required to complete the Property Information Form/Leasing Information Form after entering into estate agency agreement for the sale/leasing of residential properties with his client. The information to be filled includes the user restriction of the property. To understand the user restriction of a property, buyers/tenants should obtain the completed Property Information Form/Leasing Information Form from the estate agent.
An estate agent is responsible for checking the permitted use of the properties that he handles and giving appropriate advice to his client. In general, the information on user restriction would be prescribed in the occupation permit or the deed of mutual covenant.
The permitted use of a property cannot be concluded as residential even if it had been used for residential purpose by the former occupants or other units on the same floor were used for residential purposes. Its permitted use can be ascertained from the occupation permit or the deed of mutual covenant.
Violation of the permitted use of a property prescribed in the occupation permit may affect the title of the property and create problems in resale. Government departments may also issue an order or institute a prosecution.