Judge declares developer ignorance no defence in second real estate malpractice case
No 1 Team Limited slapped with HK$720,000 fine as magistrate finds the company guilty of 19 charges relating to breaches of residential properties ordinance
A developer was handed a HK$720,000 fine in court on Wednesday after what was just the second successful prosecution since tough new laws were introduced targeting real estate sales malpractice.
After pleading innocence at an earlier hearing, No 1 Team Limited, a subsidiary of Tung Chun Soy Sauce, was found guilty of 19 charges relating to breaches of the Residential Properties (First-hand Sales) Ordinance by Kwun Tong magistrate Peony Wong Nga-yan.
Wong found the company had not taken precautions or demonstrated due diligence when it failed to provide price lists or sales brochures to buyers and the Sale of First-hand Residential Authority while selling flats at Full Art Court, Sham Shui Po in 2014.
The Residential Properties (First-hand Sales) Ordinance, which came into effect in 2013, prohibits misrepresentations and the dissemination of false or misleading information by developers. It demands that developers provide sales brochures and price lists, and sets clear guidelines around information provision during the sale of new residential properties.
Wong said the intent of the law was to provide buyers with more information not commonly available during site visits.
One of the points of contention raised during the earlier trial was that the Sham Shui Po flats were built a decade ago, but that not every flat had been leased before, calling into doubt whether the new law regulating first-hand properties should even apply.