Experience Sharing

Planning of surrounding area may change Vendors’ commitments to be checked

Case 9:

Mr E and Mrs E hoped to own a property that would face towards greened areas. Also, Mr E worked on shift and hoped that the development he would reside in would provide a gym that opened round-the-clock so that he could use it any time. An estate agent promoted to the couple a first-hand uncompleted residential development, telling them that the development site was adjacent to a landscaped green area and upon checking with the vendor, the gym in the clubhouse of the development would open round-the-clock. This was the selling point of the development. After considering the promotion by the estate agent, Mr E and Mrs E thought the development would live up to their expectations. They purchased a property of the development and took over the property two years later. After taking over the property, they were shocked to notice that the landscaped green area mentioned by the estate agent had been converted into an open car park. They then examined the information in the sales brochure and realized that the landscaped green area was of temporary nature and that area could be used for purposes of greening zone, car park or barbecue site. At the same time, they knew only after moving into the property that the idea of round-the-clock operation of the gym was a proposal only and upon operation of the clubhouse, the management office did not have enough manpower and resources to run the gym round-the-clock. As a result, the couple felt very upset about this.


Advice from the SRPA:


Home purchase is a significant decision which is worth prospective purchasers spending more time to get to know if a development meets their requirements. Publicity materials may not be comprehensive. Purchasers should not rely solely on these materials to get information about a development.


According to the Residential Properties (First-hand Sales) Ordinance (the Ordinance), a vendor is required to provide the location plan, aerial photograph, outline zoning plan and cross-section plan of a development in the sales brochure. The Ordinance stipulates that the location plan of the development provided by the vendor must show every building, facility or structure (if any) specified in the Ordinance that is situated within 250 metres from the boundary of the development. The objective of such requirement is to provide prospective purchasers of first-hand residential properties of a development to be aware of those facilities near the development. These items are likely to give rise to concerns on aspects such as traffic, noise level, air quality, odour, environment, hygiene, fire hazard, pedestrian flow, crowdedness, or tranquility, which will affect the day-to-day living of residents in the development.


The SRPA advises prospective purchasers to visit the development site and get to know the surroundings of the property (including transportation and community facilities).


At the same time, in view of volatility in district development and that the pre-sale period for private residential properties under the Lands Department Consent Scheme can be as long as 30 months, the current situation in the surrounding areas of a development may change in future. The SRPA advises prospective purchasers to check town planning proposals and decisions which may affect the property.


Prospective purchasers should also check in particular a section on “relevant information” in sales brochures. The Ordinance requires vendors to include relevant information in sales brochures under which information on any matter that is known to the vendor but is not known to the general public, and is likely to materially affect the enjoyment of a residential property will be set out.


On subordinate facilities to be provided by the vendor of first-hand residential development, prospective purchasers should check with the vendor in details information like provision period, service hours and charges (if any) so as to come up with an informed choice.