Buying property in Hong Kong: the full process

Buying a flat in Hong Kong is a staged legal process with defined deadlines, payments, and parties. Your agent guides the search, your solicitor handles the law, and your lender provides the funds. This page walks the sequence from budget to handover, with realistic timelines for each step.

1. Budget and mortgage pre-approval

Before viewing, work out what you can spend. The two components are your cash (deposit, fees, stamp duty) and the mortgage. A bank’s in-principle approval gives you a firm ceiling, not a guess.

• Mortgage pre-approval – apply to one or two banks. They check your income, existing debts, and the maximum loan amount under current lending rules. This takes roughly one week. Pre-approval is not a formal mortgage offer, but it tells you the price range you can bid in.
• Total cash needed – include the deposit (typically 10% of the price at provisional agreement, plus further sums later), stamp duty, legal fees, and agents’ commission. Do not rely on a loan to cover these.
• Who does what – you (the buyer) provide income documents; the bank assesses and gives a letter of pre-approval; the estate agent usually has no role at this stage.

2. Viewing flats

You view properties through an estate agent licensed by the Estate Agents Authority. The agent must show you the land registry record (land search) for any flat you seriously consider, so you know the legal owner and any encumbrances (e.g. mortgages, orders).

• Saleable area – Hong Kong uses saleable area, not gross floor area. The agent must quote the saleable area from the official deed of mutual covenant.
• Who does what – the agent arranges viewings, discloses known defects if asked, and gives you the land search. You inspect the flat yourself.

3. Offer and negotiation

Your offer is verbal or in writing through the agent. If accepted, the agent prepares the provisional agreement for sale and purchase (PASP). This is the legally binding document that starts the transaction.

• Negotiation – you make an offer; the seller may counter. Both sides can walk away until the PASP is signed.
• Who does what – you and seller negotiate; the agent facilitates (but must act in your best interest unless you have given written consent for the agent to represent both sides, known as dual agency).

4. Provisional agreement and initial deposit

Once terms are agreed, you sign the PASP and pay the initial deposit (“small deposit”) immediately — usually by bank draft or cheque. This binds both parties.

• Timeline – signed on the day of the accepted offer, or within one working day.
• Deposit – paid to the estate agent as stakeholder (or to the seller’s solicitor). It usually converts to part of the total deposit.
• Who does what – you sign and pay; the seller signs; the agent witnesses and holds the deposit.
• What happens if you pull out – you forfeit the deposit. If the seller pulls out, you receive double the deposit (unless the PASP states otherwise).

The PASP sets a date (usually 14 days later) for signing the formal agreement for sale and purchase and paying the further deposit. For a full explanation of this document, see the guide on The provisional agreement for sale and purchase.

5. Appointing a solicitor

You must engage a Hong Kong solicitor within a day or two of signing the PASP. The seller’s solicitor and your solicitor will handle all legal steps between provisional and completion.

• Timeline – instruct your solicitor no later than two working days after the PASP is signed; a week is safer if the 14-day period is tight.
• Fee – legal fees vary; do not assume a flat rate. See the guide on Conveyancing and solicitor fees when buying in Hong Kong.
• Who does what – your solicitor checks the property title, prepares the formal agreement, liaises with the seller’s solicitor, handles the mortgage documentation, and coordinates completion.

6. Formal agreement and further deposit

On the agreed date (usually 14 days after the PASP), you sign the formal sale and purchase agreement and pay the further deposit. The total deposit now reaches 10% of the agreed price (though the initial deposit counts toward it).

• Timeline – signing occurs at the seller’s solicitor’s office or via exchange of signed copies. You must have the funds ready.
• Deposit – you pay the further deposit to the seller’s solicitor. Both deposits (initial + further) equal 10% of the price.
• Who does what – your solicitor checks the formal agreement and advises you before you sign; the seller’s solicitor receives the deposit.
• Mortgage offer – by this stage you should have a formal mortgage offer from your bank, because the bank needs the signed formal agreement to finalise the loan.

7. Title search and due diligence

Your solicitor runs a full title search at the Land Registry to confirm the seller owns the flat free from undisclosed charges, orders, or ownership disputes. This happens between the formal agreement and completion.

• Timeline – typically two to four weeks. The title search must be completed before completion, usually within 21 days of the formal agreement.
• What it checks – ownership history, mortgages, liens, judgments, building orders, and any restrictions in the deed of mutual covenant.
• Who does what – your solicitor conducts the search; the seller’s solicitor responds to any requisitions (questions about the title). If problems surface (e.g. an unreleased mortgage), the seller must fix them before you can complete.

8. Mortgage drawdown and completion

Completion is the day ownership transfers. On that day:

1. Your bank pays the mortgage proceeds to your solicitor.
2. Your solicitor adds your cash balance (the remaining deposit, stamp duty, legal fees) and sends the full purchase sum to the seller’s solicitor.
3. The seller’s solicitor releases the keys and title deeds to your solicitor.
4. The flat is registered in your name at the Land Registry.

• Timeline – completion is set in the formal agreement, usually 30 to 60 days after signing. The exact date is negotiable.
• Who does what – your solicitor coordinates with your bank and the seller’s solicitor. You ensure funds are in your bank account at least two working days before completion. The agent may attend completion but is not required.
• Handover – you get the keys. The flat must be vacant unless the agreement says otherwise (e.g. vacant possession clause).

See the guide on Completion and handover: the final stage for detailed checks (meter readings, management fee settlement, defect inspection).

9. The parties and their roles

Knowing who is responsible for what avoids confusion:

Timeline summary

• Day 0 – view flat; make offer; sign PASP; pay initial deposit.
• Day 1–2 – instruct solicitor.
• Day 14 (approx.) – sign formal agreement; pay further deposit (total deposit reaches 10% of price).
• Day 14–35 – title search; mortgage offer finalised.
• Day 30–60 – completion; keys handed over; registration.

Timings are negotiable. A cash buyer may complete in 30 days; a buyer needing a mortgage typically needs 45–60 days.

What to check or do next

• Get mortgage pre-approval before you view.
• Use an agent licensed by the Estate Agents Authority. Confirm their licence number before discussing fees.
• Read the dedicated guide on Estate agent commission and what an agent must tell you for commission rates, disclosure rules, and dual agency.
• Do not sign the PASP without reading it through, preferably with your solicitor’s advice.
• Discuss the completion date with the seller; a longer completion gives you more time for the mortgage and searches.