1st Edition

Regulating Information Asymmetry in the Residential Real Estate Market The Hong Kong Experience

By Devin Lin Copyright 2017
    296 Pages
    by Routledge

    296 Pages
    by Routledge

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    This book conducts a detailed examination of the current form of the Hong Kong residential property regulatory system: the 2013 Residential Properties (Firsthand Sales) Ordinance (Cap 621). The author sheds light on how the new legislation promotes a number of values including information symmetry, consumer protection, the free market and business efficacy. It provides a detailed account of how the regulatory mechanism has evolved over the past three decades to catch unconsscionable sales tactics (such as selective information and/or misrepresentation of location, size, completion date and past transactions) and monitor sales practices in order to protect the interests of stakeholders in this ever-changing first-hand residential property market.

    This book breaks down this complicated subject matter by focusing a number of chapters each on a specific attribute of the residential property on sale. It then examines the various channels through which the information is communicated to the prospective buyer and discusses misrepresentation of the key information in sales of residential properties as criminal liability.The tension between consumer’s rights on one hand and the pursuit of free market principles on the other is but one example of the conflicting values thoroughly discussed in the book, others include superstition vs. modernization and clarity vs. flexibility.

    Aimed at those with an interest in consumer protection and transparency-orientated legislation in commercialized real estate transactions, this book seeks to provide an in-depth discussion of the latest trends and directions of travel.

    Chapter 1 Introduction

    Chapter 2 The Way to Legislation

    Chapter 3 Saleable Area

    Chapter 4 Gross Floor Area

    Chapter 5 Internal Structures, Fittings and Finishes

    Chapter 6 Location

    Chapter 7 Floor Number

    Chapter 8 Date of Completion and Lease Term

    Chapter 9 Deed of Mutual Covenant and Land Grant Conditions

    Chapter 10 Price List

    Chapter 11 Sales Arrangement

    Chapter 12 Transaction

    Chapter 13 Information Channels

    Chapter 14 False or Misleading Information and Misrepresentation 

    Chapter 15 Regulation by Legislation 


    Devin S. Lin, PhD reseraches on Construction Law and Property Law and is now teaching in the Southwest University of Political Science and Law, China.