Concrete Analysis | Exercise care on advertisements and be alert to misrepresentation when buying first-hand residential property
- Consumers should refer to the latest version of sales brochures and price lists published by vendors for accurate information
- Such knowledge can help prospective buyers protect their rights, or detect potential misrepresentation by property agents
The sale of new residential developments remains the focus of Hong Kong’s property market this year. In this regard, consumers should not solely rely on promotional materials and advertisements when considering a purchase of a first-hand residential property, particularly those posted on social media or lamp posts. They should always be sceptical about promotional messages.
It is not easy for consumers to verify information that appears in advertisements. Advertisements with only a contact name and phone number, without a company name or licence number of an property agent, should be considered suspicious. They might not be issued by licensed property agents.
Hence, prospective buyers should always refer to the latest version of sales brochures and price lists published by the vendor for accurate property information. They set out payment terms and the basis of any available discount and any gift, financial advantage or benefit in connection with a property purchase provided by the vendor.
Apart from the sales brochures and price lists, prospective purchasers should also pay attention to the sales arrangements issued by the vendor, such as the date and time for the sale, the sales venue, the number of units offered and the method to be used to determine the order of priority of purchases.
According to the guidelines issued by the Estate Agents Authority (EAA), information provided by property agents to prospective buyers of new residential properties must only be based on the sales brochure and documents prepared and provided by the vendor.
It is important to note that when taking part in the sale of first-hand residential properties, property agents are not allowed to make any representation that may mislead prospective purchasers. Otherwise, they will be subject to sanctions by the EAA. Here, I would like to share a non-compliant case about misrepresentation in the sale of a first-hand residential property.
