Separate Written Warning Statement

Licensed property agents are required to provide the purchasers with a separate written warning statement before they enter into any agreement in connection with the purchase or make any payment in relation to the purchase of UPOH (whichever is the earlier).

Licensed property agents must ensure that the separate written warning statement to be provided to the purchasers must include all of the following warnings, that the purchasers should:

(a) conduct due diligence on the vendor and the UPOH themselves;

(b) review all sales documents (i.e. the legal opinion, separate written warning statement and sales information sheet);

(c) pay attention that risks are involved in purchasing UPOH as:

(i) the transaction is subject to the laws and any change in policies and regulation of the place where the UPOH is situated;
(ii) in the event that the vendor is in breach of any agreement or promises or the transaction is fallen through, purchasers may have to take legal action or seek remedies outside Hong Kong;
(iii) even though due diligence has been conducted on the vendor, there is no guarantee that it will be able to complete the development on time or at all or it will be able to honor the rental return or guarantee (if any) as promised; and
(iv) fluctuation in exchange rate may adversely affect purchasers’ purchase or return;

(d) consider appointing an independent lawyer to protect their own interests at all stages of the purchase and seek his assistance to explain the terms and conditions of any agreement in connection with the purchase (e.g. booking form, reservation form, agreement for sale and purchase) before entering into such agreement; and

(e) consider seeking independent professional advice on the types and amounts of taxes or levies that they may be liable to pay as foreign purchasers in relation to the purchase, resale, lease or holding of the properties, if any, in respect of their own case to protect their interests.