Sales & Purchase steps
How do you buy a parking space ?
It is no different from buying any other kind of property, you need to go through lawyer for a check of good title of property before signing for a formal Sales and Purchase Agreement, and then apply for a mortgage or pay off in one go.
What is the first step ?
You put down an earnest money equivalent to 1% of sales price, and sign the online initial Agreement to Sales and Purchase.
Earnest money can be paid to Parkinghk.com or owner's designated lawyer. It will be transferred to form part of deposit at later stage.
Then what ?
After receiving earnest money, owner's lawyer should prepare a draft Agreement for Sales and Purchase for you to sign.
An initial deposit equivalent to 3% of sales price will be payable to owner's lawyer at this stage.
How should I respond ?
Your lawyer should give you advise, but basically you should not sign for things you have not agreed with other party.
At the same time, you should apply for mortgage with your bank.
How long would it take to sign for the Sales & Purchase Agreement ?
Usually within 2 weeks, it depends on how much comments you have on the draft Sales and Purchase Agreement.
Further deposit of 45% of sales price will be required upon signing this agreement.
The 1% earnest money will be transferred to form part of this second deposit.
What about the balance of Sales Price ?
Your mortgage should finance the rest of it when the sales is completed in the mutually agreed 1 to 1.5 months period according to market practice.
On this mutually designated date at the end of the 1 to 1.5 months period, your bank should transfer the rest of the balance to the owner, and you should start paying monthly mortgage from this moment on.
What happen after Sales and Purchase completion ?
Congratulation ! New owner.
You should receive a title deed from your lawyer but it will be kept by the bank if you finance the purchase with loan. You will recover the title deed by the time you pay off the mortgage.
Don't worry , you will find your name registered by your lawyer as new owner in Land Registry record, and you have a copy of Sales and Purchase Agreement to prove it.
Symbolically, you may be given a car park entrance security card by previous owner as well to show your status as new owner.
