Leniency for some troubled flat deals

PUBLISHED : Saturday, 30 May, 1998, 12:00am
UPDATED : Saturday, 30 May, 1998, 12:00am

Developers may not seek compensation from individual home buyers who fail to complete purchases and forfeit their down payments, the Real Estate Agencies Association was quoted as saying yesterday.

Democratic Party member Albert Chan Wai-yip, meeting the association with home buyers from more than 10 sites, quoted association representatives as saying they would consider cases individually.

'They told us that they don't really want to see small flat buyers collapse. If a flat owner can prove they really can't afford the compensation, developers might consider it as an individual case and let it go,' he said.

'But they would not make any promise, they just said they would act on cases one by one.' Developers presently have the right to seek compensation from home buyers who fail to complete a purchase if the flats are resold at a lower price.

On top of forfeiting their down payments, home buyers would have to pay the difference between the two figures. 'That would bankrupt the home purchasers,' Mr Chan said.

Home buyers from more than 10 sites last week formed the Hong Kong Alliance for Dismayed Home Owners. Several hundred buyers have signed up.

They demanded developers' assistance in providing the mortgage, a two-year payment-free, interest-free second mortgage and no compensation for subsequent loss of sales.

The alliance plans to march to the Central Government Offices tomorrow. It is also considering a sit-in to publicise its demands.