After three years, Hong Kong home sales watchdog takes its first legal action against a developer
New authority, once chided for not doing enough to deter sales malpractices, accuses company of failing to provide information to prospective buyers of Sham Shui Po project
A developer that failed to provide the required sales information for new homes is the first company in Hong Kong to face prosecution since a law was introduced nearly three years ago to stop such malpractices.
The Sales of First-hand Residential Properties Authority is taking legal action against the No. 1 Team, a subsidiary company of Tung Chun Soy Sauce, for failing to provide the necessary details.
The watchdog pressed 19 charges against the company between July 1 and December 31 last year but only brought the case into the spotlight on Friday. A spokeswoman for the authority said all the charges related to sales at Full Art Court in Sham Shui Po.
If found guilty the company could be fined HK$100,000 to HK$500,000 for each charge.
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The spokeswoman said the No. 1 Team allegedly failed to provide a hard copy and an electronic copy of sales brochures and a price list to the watchdog. It also accused the developer of not providing information forms to a purchaser, as required by the first-hand sales ordinance.
“It was suspected that the vendor did not contain the mandatory provisions as required, and had entered into preliminary agreements for sale and purchase,” she added.
The case will be heard in Kwun Tong Court on 23 February.
The regulatory body was set up in April 2013 to monitor sales of new flats and to execute the Residential Properties (First-hand Sales) Ordinance, which came into full effect that same month. The regulations were intended to protect the interest of buyers and ban a swathe of dishonest sales practices.
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The watchdog has so far received 159 complaints about sales practises but has not take legal action until recently.
In a report in 2014 the Consumer Council criticised the authority for not doing enough to protect flat buyers and said unfair sales practises by developers and property agents remained common more than a year after the law was introduced.
