The Consumer Council Welcomes The Enactment of Law To Regulate Saleof First Hand Residential Properties

The Consumer Council welcomes the passage of the Residential Properties (First-hand Sales) Bill to regulate the sale of first-hand residential properties, as it reflects the consensus among different sectors of the community and support from the public.

The legislation serves to enhance consumer protection by providing a legal framework on the sale of first hand residential properties, regulating undesirable trade practices and sanctioning offences of misrepresentation and giving false and misleading information.

The Council supports the new amendments, which require property developers to set out in the sales brochures significant information that will have potential impact on the rights entitled to prospective buyers, and incorporate terms that enable buyers to file civil action related to misrepresentation.

The law requires the use of saleable area for presenting flat sizes and calculating unit prices, and with the standardised definition of saleable area, it enables consumers to compare the price and size between different flats.

We are pleased that the legislation has adopted implementing a property information platform in the form of an electronic database of information on residential properties, a regime that aims to deliver accurate and timely property information to consumers.  Under the legislation, transaction information should be disclosed within 24 hours, but to prospective buyers, "real-time" information would be considered of better reference values for consumers before they put their signature on the agreement for sale and purchase.  The Council thus suggests the government to make "real-time" information disclosure as the ultimate goal for property market transaction in the long run.

The law initially proposed that home buyers be required to execute the formal agreement 3 days after signing the preliminary agreement for sale and purchase, and the new amendment has extended such period from 3 to 5 days.  The Council supports the amendment, as it enables consumers to have more time to make well-considered choices.