2025-04-15 28Hse Editor
When viewing a property you're interested in, buyers and sellers typically sign a Provisional Sale and Purchase Agreement and pay a deposit, followed by completing the necessary buying process within a timeframe. However, before signing, agents are required to provide specific information to protect buyers' interests.
Licensed agents must provide a Property Information Form (Form 1 under the Estate Agents Ordinance), unless the buyer explicitly waives this right, as well as the latest land search records. These documents enable buyers to fully understand the property before committing.
The Property Information Form is part of the estate agency agreement and outlines key details about the property, including its size, ownership, encumbrances (such as mortgages or repair orders), year of construction, and usage restrictions.
The form is divided into two parts. The first part is completed by the agent and includes property data sourced from official authorities like the Land Registry and the Buildings Department. Any missing information is marked as "not available."
The second part is a declaration completed by the seller or agent, covering information such as whether the unit has undergone illegal alterations or if any repairs or improvements have been initiated by the management office or owners' association. Sellers can choose to leave this section blank but must disclose all known information if they complete it.
Agents are responsible for verifying the accuracy of the information provided by the seller. If incorrect information leads to buyer losses, such as a mortgage being denied because of unreported alterations, the buyer may pursue compensation from the seller or the agent.
For rental properties, agents must provide a Leasing Information Form (Form 2), which includes similar details. Form 2 contains one section completed by the agent and must be provided to tenants before signing the lease to ensure they are fully informed about the property.
While buyers and tenants have the right to waive receiving these forms, it is strongly recommended not to do so. These documents provide crucial details about the property and help you make an informed decision. If you have any doubts or questions, it’s important to clarify them with your agent. By requesting and reviewing all relevant documents, you can protect your interests and avoid potential risks when buying or renting a property.
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