Concrete Analysis | What buyers of uncompleted properties overseas from Hong Kong should do to protect their interests
- Buying uncompleted properties overseas comes with inherent risks and buyers should seek professional advice before taking any decision
- The Estate Agents Authority has embarked on several campaigns, introduced slogans and launched promotional videos to raise awareness
They should also be mindful that issues relating to uncompleted properties outside Hong Kong (UPOH) are particularly complex and there is no guarantee that a developer’s promise of investment returns would be honoured. What’s more, property concepts differ between jurisdictions; what is legal in one could be illegal in another.
Buyers should remember that they may need to shoulder more risks associated with UPOH, such as construction delays or the developer’s failure to complete the project because of insufficient funds or even bankruptcy. In such a situation, buyers would have to seek legal advice and negotiate with the developer regarding their loss.
On this front, the Estate Agents Authority (EAA) has spared no effort in reminding consumers to be extremely careful when buying UPOH. Recently we introduced a new educational campaign with an easy-to-remember slogan: “To buy or not to buy non-local off-plan properties outside Hong Kong? Assess the risks before you buy!”
The EAA has written to all property agencies, inviting them to join hands with the EAA to educate their clients on the subject by adopting this slogan in all their promotional materials and videos for non-local properties.
In addition, the EAA has also produced four animation videos on the subject and promoted them on YouTube. The videos highlight scenarios that are similar to the cases that the EAA has received in the past.
Here I would like to share one of the scenarios titled “Guaranteed return really guaranteed?”