Buying a property is undoubtedly a major life event, but the subsequent handover and inspection are equally important. In this article, Kwiksure breaks down the latest new and second-hand property handover procedures and precautions, answers the ‘inspection before handover’ myth, attaches the inspection list, inspection methods, and inspector charges reference.
1. Receiving the Occupation Permit
After obtaining the Occupation Permit from the Buildings Department and the Certificate of Compliance from the Lands Department, the developer will send a sales confirmation letter to the buyer through a law firm.
2. Schedule a handover time
New homeowners can use the contact information provided in the letter to schedule a handover date and time with the developer.
3. Receiving unit keys and inspecting the building.
After the new owner receives the unit keys and other documents, the handover staff will distribute an inspection checklist and accompany the new owner to the unit for a simple inspection. The new owner can hire an inspector or inspect the unit themselves. If there are any defects, a Defect List needs to be filled out and returned to the developer, who will then arrange for the contractor to repair the leaks.
4. Confirm that the unit has completed the repair work.
After the repairs are completed, the new owner will come to the unit again for inspection. If satisfied, they can sign a confirmation document.
5. Complete resident registration and handover of the property.
The new owner officially receives the keys and completes the resident registration, while also paying the management fee deposit, the first management fee, and miscellaneous fees.
1. The transaction will be conducted on an as-is basis, with a "provisional sales contract" signed.
The buyer negotiates and transacts based on the flat's current condition. Once both parties agree, a "Provisional Sale and Purchase Agreement" is signed, and an initial provisional deposit is paid. The agreement specifies the flat's completion date.
2. The buyer applies for a bank mortgage, signs a formal contract, and pays stamp duty.
The buyer can use the "Provisional Agreement for Sale and Purchase" to apply for a bank mortgage; about two weeks after signing the Provisional Agreement, the buyer and seller need to sign the "Formal Agreement for Sale and Purchase", and the buyer needs to pay an additional deposit (large deposit) and stamp duty.
3. Pre-handover inspection of the property
The buyer can request two property inspections: one for the bank to conduct an appraisal, and a second to verify that the unit's condition matches the terms of the signed contract. The dates should be arranged one to two days before the official handover date.
4. Go to the lawyer's office to sign the property deed
After inspecting the unit, the buyer will need to go to a law firm to sign the Deed of Assignment, officially transferring the ownership of the unit from the seller to the buyer. The lawyer will then assist in completing the transfer procedures and submit the title to the Land Registry for registration. The buyer will also need to pay the remaining balance and the agent's commission.
5. Formal handover
Once the law firm has completed the formalities, a date and time can be set for the handover of the property. The transaction is officially completed once the buyer receives the keys.
After receiving the Occupation Permit, buyers of newly built apartments can schedule a handover date with the developer, which can also be arranged for a property inspection on the same day. On the handover day, new owners will receive an inspection checklist. If any issues are found, they can fill out and submit a repair request form to the developer for repairs. After the developer completes the repairs, the flat will be inspected again. Once satisfied, the owner can officially hand over the property. If problems are discovered after the inspection period, the owner may have to pay for the repairs themselves.
For resale properties, it is strongly recommended to inspect the property one to two days before closing. This ensures the flat's condition matches the condition stated in the contract, confirms the furniture promised by the seller is in good condition, and that all other clutter has been thoroughly removed. If any issues are found, there is also an opportunity to communicate with the seller immediately and arrange for repairs. Since resale property transactions are typically based on an as-is basis, if problems are discovered after handover, the seller usually will not be responsible for repair costs, and the new owner cannot refuse the sale or demand repairs.
When handing over property, the new homeowners need to check whether the unit size, layout, structure, and spacing are consistent with the "floor plan" shown in the sales brochure, and pay special attention to checking the length and width of the living room, bedroom, kitchen, and bathroom.
Many new housing developments include interior decoration and all the appliances in the house to maintain a unified style. When handing over property, the owner needs to check the quantity of all the appliances to make sure they are all present and that the brands and models match. They must also test all the appliances to make sure they work properly and ask the developer for the instruction manuals, warranty certificates, and installation certificates for all the appliances to verify the actual warranty period.
Even in a new building, there's a chance of facing a leakage problem. For example, poor waterproofing in the bathroom can lead to damage to the waterproof layer, substandard sealant application at window openings, or cracks in the exterior walls. Therefore, homeowners must conduct leak tests when handing over property. For instance, fill a sink or washbasin with water and let it sit for 24 to 48 hours, then observe the other side of the wall or the ceiling below for signs of moisture; spray water on the window frames and observe the corners for water seepage or paint bubbling.
In addition to testing the appliances that come with the property, homeowners should also check the electrical system to ensure it is functioning properly when handing over property. This includes checking if all power plugs and switches are working and if the wiring is neat, in order to avoid any safety hazards.
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New building |
Second-hand houses |
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Purpose of building inspection |
During the building inspection period, the developer was required to rectify any deficiencies. |
Pay attention to whether there are any serious problems with the unit and seize the opportunity to negotiate with the seller. |
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Inspection period |
According to the Ordinance on the Sale of New Residential Properties, buyers have a 6-month maintenance period after handing over property. |
From the signing of the formal sales contract to the closing date |
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Repair responsibility |
Developer |
Buyer (as-is basis) |
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Key points of building inspection |
All defects and omissions in the decoration of all equipment and facilities within the unit. |
Test if the unit is a Cosmetic Renovation Unit (where surface renovations are used to deliberately cover up aging and problematic parts) |
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tool |
use |
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Sales brochure |
Verify the actual building dimensions, layout, materials used, and appliances included with the building. |
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Building Inspection Checklist |
Record items to be inspected to avoid forgetting to inspect them. |
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Camera/Mobile Phone |
Take photos of the unit's problems as evidence. |
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Mirror with a long handle |
Convenient for handheld inspection of areas that are difficult to check |
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ladder |
Inspect ceilings and false ceilings |
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Level gauge |
Test the flatness of the floor and walls |
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pull ruler |
Unit of measurement actual size |
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metal rod |
Demolish the wall to inspect the plaster and check for water seepage. |
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toilet paper |
Check for water leaks and test the flushing power of the toilet. |
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flashlight |
Inspect the glass or check areas in low light. |
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Voltage Tester |
Testing power operation |
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Memo Pad |
Simply mark the location of the problem to facilitate repairs by the developer. |
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Large water bottle/bucket |
Test the water level in the toilet, kitchen, or terrace by pouring water. |
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Hygrometer |
Detecting wall humidity to check for water seepage problems |
Consumer Council provides 19 essential items to check during a property inspection. Homeowners can refer to the following high-risk areas for detailed inspection:
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Location |
Inspection section |
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bathroom |
Remove the false ceiling and check the drain pipes or concrete structure for leaks. |
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Are there any uncleaned construction debris on the false ceiling? |
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Test the water supply and drainage system and the floor drainage system to ensure they are functioning properly. |
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Is the slope of the platform sufficient, and does it facilitate drainage? |
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Are there any scratches on the bathroom fixtures? |
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kitchen |
Test whether the water supply and drainage system are working properly. |
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Are there any scratches on the bathroom fixtures and kitchen cabinets? |
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Ensure that the stove and gas are functioning properly. |
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Terrace/Work Platform |
Test whether the water supply and drainage system are working properly. |
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Do the railings meet safety standards? |
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other |
Ensure that electrical appliances and switches are functioning properly. |
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Are there any scratches on the countertop? |
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Are there any missing screws on the aluminum windows? Are there waterproof sealant edges? Are the window hinges securely installed? |
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Is the door lock working properly? |
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Are the wall and floor tiles straight and free of cracks? Is the paint smooth? |
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Are the concrete and mud plasterings straight? |
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Is there any scratch on the glass? |
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Does the wood flooring have any scratches or color variations? For example, if the material has been exposed to direct sunlight, it may cause color differences. |
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Verify that the brands and models of furniture or appliances listed in the sales brochure are correct. |
While self-inspection can save money, inexperienced buyers may miss crucial areas and miss the developer's warranty period. New homeowners are advised to hire professional inspectors. Besides their extensive experience and specialized equipment, they can accurately identify potential problems and provide detailed defect reports. These reports, verified and signed by government-approved individuals, are legally binding and can prevent future disputes.
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Reference Fees for Building Inspectors |
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Reference price per square foot (HKD) |
Minimum spending (HKD) |
Key points of building inspection |
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New building |
$3 - $5 |
Starting from $1,500 |
The quality issues will be left to the developer to handle. |
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Second-hand houses |
$4 - $6 |
Starting from $2,000 |
Identify potential problems with the unit to avoid future repair costs for the buyer (as-is basis). |
1. Submit a repair checklist within 6 months.
According to the Ordinance on the Sale of New Residential Properties, buyers are required to submit a written repair list to the developer within 6 months from the date of the transaction. If the list is submitted after the deadline, the developer may be liable for repairs.
2. Take photos and videos during the property inspection as evidence.
If defects or leaks are found, photos and videos should be taken of the defective areas during the inspection for evidence. It is also best to put up a notice at the problem location to simply indicate the problem.
3. Written declaration
List all identified problems on the repair sheet and submit a written repair request to the developer. Before submitting, be sure to keep a copy of the application form and photos or videos to prevent disputes.
4. The developer arranges for the renovation.
Developers typically arrange for their engineering department or foreman to visit and repair the items within 2 to 4 weeks of receiving the list. Homeowners can keep records and compare before and after the repair work is carried out by the contractor.
5. Owner's review and confirmation
After the repairs are completed, the homeowner needs to re-inspect the defective parts to ensure they have been properly repaired and sign to confirm completion. If dissatisfied, they must immediately raise the issue and request a rescheduling.
1. Take photos and videos during the property inspection as evidence.
If any defects or leaks are found during the property inspection, photos must be taken as evidence, and it must be determined whether the defects existed at the time of signing the contract or were caused after the contract was signed. Based on the principle of buying as is, if the damage occurred after the contract was signed, the seller is responsible for repairs.
2. Review the terms of the sales contract.
If the sales contract lists the appliances included as complimentary items, and damage is found during the property inspection, the buyer can request the seller to repair them before the transaction is completed.
3. Notify the seller in writing through a lawyer.
If any problems are found during the property inspection, especially defects or equipment damage after the contract has been signed, you should immediately notify your lawyer, who will then compile a list of defects and notify the seller's lawyer in writing, requiring the seller to complete the repairs or provide other solutions before the transaction is closed. Avoid making any private or verbal negotiations with the seller or real estate agent to prevent disputes.
4. Negotiated solutions
After receiving written notice, the seller's lawyer will usually negotiate with the other party and propose a solution, such as the seller making repairs or deducting the property price as compensation.
5. The transaction is concluded, and the right to pursue legal action is reserved.
After the negotiation is completed, the seller will fulfill its corresponding responsibilities. If the seller fails to complete the transaction before the transaction is completed, the buyer still needs to pay the balance. However, the lawyer will issue a statement letter stating that the buyer can "reserve the right to pursue legal action". If the seller fails to fulfill its responsibilities, the buyer can pursue legal action to recover the repair costs stipulated in the contract.
A property inspection is the primary guarantee before officially moving in, and comprehensive safeguards are still needed after moving in. Purchase as early as possible. Home Insurance can protect against loss and damage to home property caused by accidents, such as water seepage or window breakage caused by typhoons and home burglary.
If the unit is a new development, the inspection can be conducted after receiving the Occupation Permit and handover notice. If the unit is a resale property, the inspection must be conducted after signing the provisional sale and purchase agreement and before the formal handover. It is recommended to inspect the unit one to two days before the closing date to ensure that the unit's condition is consistent with that at the time of signing.
The inspection time depends mainly on the size and condition of the unit. Generally, a new building or a small to medium-sized unit of 300 to 600 square feet takes about 1 to 2 hours. The specific time depends on the unit structure and the number of defects.
Legally, homeowners can move in before the repairs are completed. However, since the responsibility for damage and wear and tear on the unit after moving in is difficult to clarify, it is very likely to cause disputes. Therefore, it is strongly recommended that homeowners move in only after the developer has completed the repairs and signed a confirmation that the repairs have been completed.
Generally, a new owner cannot back out of a property deal. Theoretically, the buyer needs to complete the transaction first and request the developer or seller to address the issue. For new properties, the owner can record the location of leaks or hollow bricks on a leak sheet, take photos as evidence, and then notify the developer in writing to carry out repairs. Second-hand properties are usually purchased as is, but if leaks or hollow bricks are discovered before the transaction, it is necessary to immediately document the issue and negotiate with the seller through a lawyer, requesting the seller to provide a solution.
Kwiksure has over 20 years of experience in the home insurance industry, comparing quotes from over 60 insurers in Hong Kong. Use our online quotation tool now to get a free home insurance quote!
The above information is for reference only. Kwiksure takes no responsibility for the accuracy and timeliness of the information. For the coverage, mode of compensation, benefit limit and premium levels of any specific insurance plan, please refer to the relevant policy terms.
Cassidy is a content creator at Kwiksure. She mainly writes about cars and travel. She has previously worked in advertising creation and online media editing. She loves writing and is keen on discovering the latest topics. She is committed to bringing fresh, interesting and practical information to readers.
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