Whenever a new development is launched, it often attracts many prospective buyers to submit registrations for purchase, and oversubscription is common. To improve their chances of being selected, some buyers will try every possible way, even asking immediate family members to submit registrations as well, in the hope of being drawn and getting the chance to purchase their preferred unit.
When buyers are interested in a new development, they must first submit an application for purchase. Prospective buyers are required to submit a Letter of Intent to Purchase to indicate their interest in purchasing a unit in the development, and at the same time prepare a cashier’s order worth HK$100,000 as a deposit. If the buyer is selected and purchases a unit, the amount will be used to pay part of the deposit when signing the Provisional Sale and Purchase Agreement.
As for when applications can be submitted, this depends on the arrangements of the individual development and developer. The application period, location and deadline may vary from project to project. In general, applications from prospective buyers are accepted on-site on the day the show flats open.
Regarding the number of applications that can be submitted, this depends on whether the developer has set any restrictions. Some new developments only allow each buyer to submit one Registration of Intent, while others allow one person to submit two or four applications, or even submit joint applications in the form of “combined tickets.” Therefore, prospective buyers should carefully read the sales arrangements and terms before submitting an application, to avoid affecting their eligibility to purchase.
In general, a couple can submit applications under their individual names and jointly, meaning there can be three combinations: A (husband), B (wife), and A+B (husband and wife jointly), allowing up to three applications. If the developer allows buyers to submit applications together with immediate family members, a couple plus one family member can form up to seven combinations.
The more applications submitted, the higher the theoretical chance of being selected and having priority in choosing a flat. However, each application usually requires a corresponding cashier’s order, so the required funds and administrative costs will also increase. Buyers should therefore calculate carefully before submitting registrations.
It is worth noting that while submitting applications under different combinations can improve the chances of being selected, it may also involve restrictions on ownership allocation. Unless the developer has set out special terms in the sales arrangements for the development, all applicants listed in the original registration must be named in the provisional sale and purchase agreement and become co-owners when they are selected and choose a flat.
If a combination that includes an immediate family member is eventually selected, and that family member is only “lending their name” to help with the application and does not intend to actually hold the property, arrangements may be made for ownership allocation if the developer does not allow names to be removed. For example, the immediate family member may hold only 1% of the ownership, while the others hold 99%, in order to reduce future transaction costs when transferring ownership.
On the other hand, most developers generally allow selected buyers to add names when choosing a flat. The newly added person usually has to be an immediate family member of the selected buyer, such as a spouse, parent, or child. The relevant person must attend in person on the day of flat selection. If they are unable to attend, they may need to provide valid authorisation documents and proof of family relationship, such as a birth certificate or marriage certificate.
If a buyer is unable to choose their preferred unit on the day of flat selection and decides not to proceed with the purchase, or if they are not successfully selected, the developer will return the relevant cashier’s order. However, if the buyer decides not to proceed after signing the provisional sale and purchase agreement, the deposit already paid will not be refunded.
