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Provisional Sale and Purchase Agreement Hk

As a professional, I have researched and written an article on “provisional sale and purchase agreement HK” to help educate readers on this important concept in Hong Kong real estate transactions.

A provisional sale and purchase agreement (PSPA) is a legally binding document that sets out the terms and conditions of a real estate transaction in Hong Kong. It is a pre-contractual document that outlines the key details of the sale, including the purchase price, payment terms, and conditions of sale.

When a buyer and seller agree to terms for a real estate transaction, they will typically sign a provisional agreement to initiate the process of buying or selling the property. The agreement is provisional because it is subject to certain conditions, such as the buyer obtaining financing or the seller obtaining necessary approvals.

The PSPA will also include other important details such as the completion date and the amount of the deposit required. Typically, the buyer will pay a deposit of 5% to 10% of the purchase price, which acts as a guarantee that the buyer is committed to the transaction.

Once the PSPA is signed, the buyer is legally committed to purchasing the property and the seller is legally committed to selling it. If either party fails to fulfill their obligations under the PSPA, they can be held liable for breach of contract.

The PSPA is an important document in Hong Kong real estate transactions because it helps to ensure that the buyer and seller are on the same page before the transaction is completed. It also helps to protect both parties from any unforeseen issues that may arise during the transaction process.

In conclusion, a provisional sale and purchase agreement (PSPA) is a legally binding document that sets out the terms and conditions of a real estate transaction in Hong Kong. It is an important document that protects both the buyer and seller by ensuring they are on the same page before the transaction is completed. If you are buying or selling real estate in Hong Kong, it is important to understand the details of the PSPA and to seek the guidance of a licensed real estate agent or attorney to assist you with the transaction process.

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