Hong Kong Sale Agreements: Deposits and the Five-Working-Day Rule
Check property details, deposits, completion dates and conditions before signing. Distinguish first-hand residential rules from resale contracts in Hong Kong.
Published: · Last reviewed: · WeProperty Editorial Team · Editorial policy
Short answer: Check the property, price, deposit, completion date and special conditions before signing a provisional agreement. Ask a solicitor about unclear obligations. The first-hand residential five-working-day arrangement puts a 5% deposit at risk; it is not free cancellation and must not be assumed to apply to resale transactions.
First-hand and resale transactions are different
SRPA explains that not signing the formal agreement within five working days after the preliminary agreement ends that agreement and forfeits the 5% preliminary deposit, without a further vendor claim for that failure. Have a solicitor check the applicable deadline and working-day calculation. SRPA: preliminary and formal sale agreements.
Do not transplant this arrangement into a resale purchase. EAA describes provisional agreements as legally binding and warns against signing with important terms blank. Ask a solicitor about any proposed financing or inspection condition; do not assume the seller must agree. EAA: provisional sale agreements.
Before-signing checklist
| Area | Question | Follow-up |
|---|---|---|
| Property and parties | Are the unit, included areas and parties clear? | Compare records and ask your solicitor |
| Deposit and dates | Are payment arrangements and completion date complete? | Do not sign with important blanks |
| Delivery and costs | Vacant possession or an existing tenancy? Who pays what? | Have the actual wording explained |
| Conditions | What if financing or inspection raises a problem? | Review before signing; avoid verbal assurances |
These are reading prompts, not clauses to paste into a contract. Individual obligations need to be assessed against the documents and legal advice.
A hypothetical deposit example
For a HK$6,000,000 purchase under the first-hand arrangement above, a 5% preliminary deposit is HK$300,000. The risk is not just a small administration fee. This illustrates arithmetic, not the outcome of an individual dispute.
Resolve uncertainties before signing
Keep complete agreement versions, payment records and written correspondence. Read the land search guide and due-diligence checklist (Traditional Chinese), then use the mortgage comparison checklist for financing questions. Searches and estimates do not replace legal review or lender approval.
Questions and answers
Is the first-hand arrangement free cancellation?
No. Failure to sign within the applicable period risks the 5% preliminary deposit. Understand the consequence before entering the preliminary agreement.
Does a resale buyer have the same five-working-day exit?
Do not assume so. Ask a solicitor to review the resale contract and default obligations.
Does a mortgage shortfall guarantee a deposit refund?
Do not assume a refund. Obtain advice on the actual contract before signing and confirm financing with the lender.
Sources
Revision: reviewed the cited scope, replaced outdated generalisations and removed unsupported experience or outcome promises. Examples and checklists are editorial illustrations; they do not establish individual approval or legal rights.