According to a watchdog that monitors the sales of new flats in Hong Kong, it files at least one case a week to government lawyers over suspected breaches in sales rules, such as false representations in advertising and problems with price lists.
The watchdog, the Sales of First-hand Residential Properties Authority, were reluctant to disclose specifics, however, and did not mention if cases had been pushed on to the Department of Justice, or when cases would be brought into court.
Flat information is distributed to clients via advertisements, price lists and brochures, monitored by the Residential Properties (First-hand Sales) Ordinance.
In an interview with the SCMP, Eugene Fung Kin-yip, director of the Authority, defended against Consumer Council criticism by arguing that despite the investigations and inspections, patience is required due to the long time it takes to collect evidence to build a convincing case.
He added that no charges have been laid so far, and that it is not the “appropriate” time to reveal the number of cases in which investigations are complete.
As of Monday, the Authority has checked 4,700 advertisements, 1,400 price lists, 630 brochures and 800 sales arrangement documents. If any developers or related parties are found guilty of illegal offences, they may be sentenced to seven years in jail and fined up to HKD5million.
According to Fung, developers have been very cooperative with their investigations, perhaps because they are legally obliged to assist the Authority.
He added it is common for consumer watchdogs to favour the needs of the buyer, and that developers should devise sales methods that are more fair and transparent, such as making sure that all flats displayed on the price list are open for sale, and decreasing the forfeited deposit percentage if buyers pull out of their deals within a specific time frame.
Photo: Wikipedia
