The formal GSB is usually concluded within 14 days of the signing of the interim agreement. This offers benefits of tax on time stamps. If the parties fail to agree on the terms of the formal agreement and the provisional agreement is binding, the parties may decide not to enter into a formal agreement. The property is sold to the buyer “as we shall see.” The property is sold in the property at the time of signing the contract and delivered to the buyer. It should be noted that the sale on an “as is” basis does not allow the seller to disclose the existence of unauthorized changes or structures regarding the property. If the buyer does not accept these unauthorized structures/modifications, the buyer may, on this basis, challenge the ownership of the property. If one of the parties does not complete the sale or purchase, it must immediately compensate the real estate agent for the total amount of the commission specified in the contract. However, if the Tribunal finds that the amount payable by a failing party is in the nature of a penalty (as opposed to liquidation damages) whose purpose is to punish the defaulting party instead of compensating for the reasonably foreseeable loss of the victim, as it far exceeds that loss of the victim, this is not refundable. The provisional agreement must contain certain information, such as the address and price of the accommodation, the amount of the initial and subsequent deposit, the date of the signing of the formal agreement, the closing date, etc. Access to the link below to get the usual items that need to be included in an interim agreement. The buyer`s lawyers then establish a formal sales contract based on the results of due diligence. As soon as both parties accept the form and content, it will be executed and registered in the land registry. Such a provisional agreement usually contains the following conditions: The broker/real estate agent is arranged for the listing and viewing of real estate.
He/she also helps the seller and buyer negotiate essential terms for the sale and purchase. The real estate broker/agent proposes a standard interim agreement (which can be verified and commented on by a lawyer) that can be signed by the parties to seize such key conditions. He/she also assists buyers in areas such as handing over keys and visiting the property, when the empty property must be delivered after completion. Real estate brokerage/brokerage fees are usually charged with a normal price of 1% of the purchase price, but this is ready to negotiate. As a general rule, fees must be paid by both the seller and the buyer. On the day of completion, the buyer hands over the balance of the purchase price against a duly executed transfer document (also known as the deed of transfer). All other title deeds and access opportunities (for example. B the key) are delivered to the buyer, unless the property is purchased by a mortgage, in which case the title deeds are made available to the buyer`s mortgage. Share transfers are becoming more frequent, as stamp duty due on the sale and purchase of shares is currently 0.2% of the highest amount of consideration and fair value of the transferred shares, compared to 30% of stamp tax applicable in the case of a transfer of assets. Provisional agreements are not necessary, but they are often used in Hong Kong.
They are also called provisional agreements. Most of the time, preliminary speeches are made by the real estate agent, who is often involved in the pre-agreement. This gives the real estate agent a direct contractual right under which he can recover commissions. The pre-agreement is usually a binding contract when the seller and buyer sign it and contain the following essential elements: i.