Best practice - or too many controls on first-hand property sales?

On April 29, the Sales of First-hand Residential Properties Authority issued a new practice note recommending that, from June 1, vendors of first-hand housing developments should display in their sales offices a table setting out the following key information: the total number of properties; total number sold before the date of sale; total number offered for sale on the date of sale; total number not offered for sale on the date of sale; descriptions of all the properties offered for sale and status of sale of each property - including whether the property is available for selection; has been selected by a prospective purchaser who has yet to sign the preliminary agreement for sale and purchase; or has been sold with the signing of the agreement.

So far, the authority has issued six guidelines, seven practice notes, more than 100 FAQs and seven reminders and announcements for the trade.

Only the guidelines issued by the authority pursuant to the Residential Properties (First-hand Sales) Ordinance have legal effect. The legal consequences of contravening the guidelines are as follows:

• A person does not incur civil or criminal liability only because he contravenes the guidelines.

• However, if, in any legal proceedings, the court is satisfied that a guideline is relevant to determining a matter in issue, it is admissible as evidence, and proof that the person contravened or did not contravene the guideline might be relied on by any party to the proceedings as tending to establish or negate the matter.