Signing an Agreement
The provisional agreement for sale and purchase of an uncompleted residential unit under the Lands Department Consent Scheme is not a binding agreement for the purchaser to buy the property but is binding on the vendor. However, if you withdraw from it, your deposit of up to 5% of the property price may be forfeited.
If the unit is not under the Lands Department Consent Scheme, the provisional agreement for sale and purchase is a binding agreement for sale and purchase on both the vendor and the purchaser. The developer may take proceedings to enforce specific performance of the agreement or retain your deposit and claim for damages for breach of the agreement.
When you proceed to sign the formal sale and purchase agreement, be aware of the following:
You should also ask the developer about all the charges related to the transaction such as legal fees, stamp duty, building plan fees, etc.