Document background
The Preliminary Contract of Sale is a fundamental document in Hong Kong property transactions, typically executed when a buyer and seller reach initial agreement on property sale terms. This document, while preliminary in nature, creates legally binding obligations under Hong Kong law and requires careful consideration of the Conveyancing and Property Ordinance, Stamp Duty Ordinance, and other relevant legislation. It serves as the first formal step in the property transfer process, requiring payment of an initial deposit and setting out key terms including property details, purchase price, payment schedule, and completion timeline. The document bridges the gap between verbal agreement and final execution of the formal Sale and Purchase Agreement, providing important protections for all parties involved while allowing time for due diligence and detailed legal review.
