Advertisement
Concrete Analysis | How to secure your mortgage on time if you end up in Hong Kong’s mandatory quarantine
- If a borrower is subject to mandatory quarantine in Hong Kong and can’t get to the bank in person to complete the deal, it can be a major headache
- Here are three steps that might help if you end up in quarantine before completing the deal to buy your home
Reading Time:3 minutes
Why you can trust SCMP
Imagine – just when you are closing the deal and preparing to get the key to your new home, you are subject to mandatory quarantine or even a citywide lockdown. Bummer.
Advertisement
It could happen to practically anyone, as Hong Kong still sees thousands of people tested positive for Covid-19 on a daily basis, and many more subject to compulsory testing because an infected sample was scooped from their building sewage. While cases are dropping and the government is planning a phased relaxation, one cannot be too careful to brace for a surprise quarantine.
Now, you could have included pre-emptive terms to allow a delayed completion. Some banks could offer procedural flexibility when signing the loan facility letter.
Last year I wrote about the possible delay in closing deals by mandatory quarantine. I then proposed provisional agreements to include a designated term enabling an automatic extended completion should either party, buyer or seller, go into quarantine, so as to protect both sides’ interests.
The suggestion was met with significant, positive response. Now the said term is almost a must-have on most provisional agreements. Considering the still raging pandemic outbreak and thus possible mass testing or lockdown – big or small in scale, these protective terms are more important now than ever.
04:29
Businesses desperate to reopen as Hong Kong revamps its Covid-19 measures
Businesses desperate to reopen as Hong Kong revamps its Covid-19 measures
Deal or delayed deal – it all boils down to banks’ mortgage approval.
Advertisement