Sub Sale Agreement Template for Hong Kong
Generate a bespoke document
What is a Sub Sale Agreement?
The Sub Sale Agreement is a crucial document in Hong Kong's property market, used when an original purchaser wishes to sell their interest in a property before completing the original purchase. This practice is common in both residential and commercial property transactions, particularly in pre-sale arrangements or during property development phases. The document must comply with Hong Kong's stringent property laws and regulations, including specific requirements for stamp duty, property registration, and conveyancing. A Sub Sale Agreement typically includes detailed information about the original purchase, the new transaction terms, payment arrangements, and completion requirements. It's particularly important in Hong Kong's dynamic property market where property values can fluctuate significantly between the original purchase and completion dates. The document must address both the transfer of rights and obligations from the original purchase agreement while establishing new terms between the sub-seller and sub-purchaser.
Trusted by high-performance teams
About the Sub Sale Agreement
A Sub Sale Agreement allows you to transfer your property purchase rights to another buyer before completing your original purchase in Hong Kong. This legal arrangement is essential when you need to sell your interest in a property that you haven't yet fully acquired, whether due to changing circumstances or investment strategies.
When do you need this document?
You'll need a Sub Sale Agreement when you've signed a preliminary agreement to purchase property but want to transfer those rights before completion. This commonly occurs in Hong Kong's pre-sale market where properties are sold off-plan during construction. You might also need this document if you've purchased property through a provisional agreement but circumstances change before the formal completion date. The agreement is particularly relevant for investors who buy multiple units during launch phases and later decide to transfer some purchases to other buyers.
Key legal considerations
Your Sub Sale Agreement must clearly transfer all rights and obligations from your original purchase agreement to the new buyer. This includes payment responsibilities, completion obligations, and any special conditions from the original contract. You need to address stamp duty liability, as both the original transaction and sub-sale may attract separate stamp duty charges under Hong Kong's progressive rates. The agreement should specify whether you retain any liability for the original purchase or if the sub-purchaser assumes complete responsibility. Consider including provisions for deposit handling, as you'll need to account for deposits already paid and any additional amounts required from the sub-purchaser.
Legal requirements in Hong Kong
Under the Conveyancing and Property Ordinance (Cap. 219), your Sub Sale Agreement must meet specific formality requirements to be legally enforceable. The document must be in writing and properly executed by all parties. You must comply with the Stamp Duty Ordinance (Cap. 117), which requires payment of stamp duty on the sub-sale transaction, potentially in addition to duties on the original purchase. The agreement should be registered under the Land Registration Ordinance (Cap. 128) to protect the sub-purchaser's interests. If you're using an estate agent, ensure compliance with the Estate Agents Ordinance (Cap. 511) regarding commission arrangements and disclosure requirements. The agreement must also consider any mortgage arrangements, as the sub-sale may affect financing terms or require lender consent for the transfer of purchase obligations.
GOVERNING LAW
Applicable law
This Sub Sale Agreement is drafted to comply with Hong Kong law. Key legislation includes:
Stamp Duty Ordinance (Cap. 117): Regulates stamp duty payments on property transactions, including special/additional stamp duty rates for sub-sales
Law of Property Amendment Ordinance: Contains provisions affecting property transactions and land contracts in Hong Kong
Land Registration Ordinance (Cap. 128): Governs the registration of property transactions and interests in land
Contracts (Rights of Third Parties) Ordinance (Cap. 623): Affects how third-party rights are handled in contractual agreements, relevant for sub-sale arrangements
Estate Agents Ordinance (Cap. 511): Regulates real estate agency practices if agents are involved in the sub-sale transaction
Sale of Goods Ordinance (Cap. 26): While primarily for goods, some principles may apply to property transactions
Unconscionable Contracts Ordinance (Cap. 458): Protects against unfair terms in contracts, including property transactions
Personal Data (Privacy) Ordinance (Cap. 486): Governs the collection and handling of personal data in the transaction process
Explore 208,390+ legal templates
Explore 208,390+ legal templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it