Novation Agreement Stamp Duty Hong Kong

The right to build (Area/Opstal) can also be granted, so that buildings can be built on land. When the construction rights granted are terminated, the owner of the land acquires the rights to it, with or without payment. Construction rights can be granted for up to 50 years (99 years from 1 September 2021, when the Belgian property law reform came into force). Long leases and construction rights are often used in tax agreements. i. If the buyer is late, the down payment expires and the seller can revoke the contract and resell the property. Any defects resulting from such resale and related costs are paid by the buyer; ii. If the seller is late, the buyer can impose the special performance of the contract or claim damages. The buyer may eventually recover any defects from the seller when buying another property and the associated costs. The Land Registry is the public registry of the property. It shows the ownership indications of each property and all charges recorded against the property, such as legal charges, authorizations, sales and sales contracts and court decisions. The land registry is held by the land registry. The Land Registry is available online at: www2.iris.gov.hk/eservices/searchlandregister/search.jsp If the transaction is made by share transfer and not by transfer of assets, there is no change of registered owner who owns the property and the benefit of leases and professional income remains the same.

When the property is sold as a transfer of assets under a lease agreement, the sale and sale agreement generally provides that the purchaser assumes all the rights, obligations and obligations of the existing underwriter. In addition, an innovation contract should be entered into to replace the buyer as a new owner, who will receive rental income even after the conclusion of the purchase of the property. Such an interim agreement generally contains the following conditions: a “right of use” is the right of a person to hold and use an asset held by another person and to take his products (with the exception of products resulting from the conclusion of asset agreements) only for the needs of households. The beneficiary of a right to use cannot give up his right. A “right of residence” has the same characteristics as a right of use, but it applies when it is a dwelling. Please note that if a paid instrument is not stamped correctly, anyone using such an instrument is also subject to stamp duty and any penalty. Following preliminary negotiations and an agreement between the two parties on a price, a legally binding “interim agreement” between the buyer and the seller is drawn up and concluded. It must be respected and, if it is not replaced by a formal sales contract within the agreed time frame, it can be used for the rest of the transaction or for compensation for infringement. A first down payment is usually paid at the signing. Important exceptions: Intragroup transfers of Hong Kong shares between related companies may be exempt from stamp duty.