REALWorld Law

Sale and purchase

Effective transfer of ownership

How is a lawful and proper transfer of title to real estate to a purchaser effected?

Hong Kong, SAR

Hong Kong, SAR

As between the Government and the purchaser (usually a developer), a contract called "Conditions of Sale" or "Conditions of Exchange" (as the case may be) is executed. This has the effect of giving the purchaser a mere conditional right. Upon actual compliance with all the positive conditions in the contract, this right will be converted into a form of legal ownership and the purchaser becomes the holder of the legal title.

In a common sale and purchase transaction, a transfer is executed by a formal document called a "deed" which passes the legal rights over and interests in the land from the vendor to the purchaser. The sale and purchase agreement and the assignment together with a record in the prescribed form called a "memorial" is registered at the Land Registry.