The Commercial Property Purchase Agreement is a crucial legal document used in Hong Kong for commercial real estate transactions. It is required whenever a commercial property is being transferred from one party to another, whether for investment, business operations, or development purposes. The agreement must comply with Hong Kong's legal framework, particularly the Conveyancing and Property Ordinance (Cap. 219) and related regulations. It contains detailed provisions covering property specifications, purchase price, payment terms, conditions precedent, completion requirements, warranties, and post-completion obligations. This document is essential for protecting both parties' interests and ensuring a smooth transfer of commercial property ownership in accordance with Hong Kong law and practice.
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1. Parties: Identification of the Vendor and Purchaser with full legal names and addresses
2. Background: Context of the transaction and brief description of the property
3. Definitions: Definitions of key terms used throughout the agreement
4. Sale and Purchase: Core agreement to sell and purchase the property at the specified price
5. Purchase Price: Details of the purchase price, payment schedule, and deposit arrangements
6. Conditions Precedent: Conditions that must be satisfied before completion can occur
7. Title and Property Inspection: Vendor's obligations regarding good title and purchaser's rights of inspection
8. Completion: Completion date, requirements, and procedures
9. Vendor's Representations and Warranties: Standard warranties about the property's condition, title, and encumbrances
10. Purchaser's Representations and Warranties: Warranties regarding purchaser's capacity and authority to purchase
11. Risk and Insurance: Transfer of risk and insurance obligations
12. Default and Termination: Consequences of default and termination rights
13. Stamp Duty and Costs: Responsibility for stamp duty, legal fees, and other costs
14. Notices: How formal notices should be given between parties
15. Governing Law and Jurisdiction: Confirmation of Hong Kong law and jurisdiction
16. General Provisions: Standard boilerplate clauses including entire agreement, amendments, etc.
1. Existing Tenancies: Required when the property is sold subject to existing tenancies, detailing tenant rights and obligations
2. Property Management: Needed for properties in commercial buildings with shared facilities and management
3. Environmental Matters: Required for properties with potential environmental issues or specific environmental requirements
4. Planning and Development: Needed when the property has ongoing or pending planning permissions or development rights
5. Asset List: Required when the sale includes furniture, equipment, or other assets
6. Intellectual Property: Needed when the sale includes trading names, logos, or other IP associated with the property
7. Employee Matters: Required when the sale involves transfer of property-related employees
8. Tax Structure: Needed for complex transactions with specific tax planning requirements
1. Schedule 1 - Property Description: Detailed description of the property including boundary plans and floor plans
2. Schedule 2 - Title Documents: List of title documents and encumbrances affecting the property
3. Schedule 3 - Completion Requirements: Detailed list of documents required for completion
4. Schedule 4 - Form of Transfer Deed: Agreed form of the assignment or transfer deed
5. Schedule 5 - Existing Tenancies: Details of any existing tenancies including lease terms
6. Schedule 6 - Property Condition: Current condition of the property and any known defects
7. Appendix A - Property Plans: Floor plans, location maps, and other relevant drawings
8. Appendix B - Building Specifications: Technical specifications of the building and installations
9. Appendix C - Inventory: List of included fixtures, fittings, and equipment if applicable
10. Appendix D - Due Diligence Documents: List of documents provided during due diligence
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