First-hand Sales Ordinance (Cap. 621) for Agents

The Residential Properties (First-hand Sales) Ordinance (Cap. 621) has governed the sale of new flats by developers since 29 April 2013. It is regulated by the Sales of First-hand Residential Properties Authority (SRPA). Both exam syllabi list over 30 of its sections, and there is a Part II case type built around first-hand sales. Most questions test a number (days, percentages, unit counts) or a ban. This guide gives you the numbers, each checked against the Ordinance on elegislation.gov.hk or SRPA material on 11 October 2026.

The numbers to memorise

What the Ordinance covers

It applies to almost all first-hand residential properties offered for sale by developers, completed or uncompleted, inside or outside the Lands Department Consent Scheme (s.10). First-hand car parking spaces are not covered, though the brochure must show the car park floor plans. The SRPA runs an electronic database, the SRPE (www.srpe.gov.hk), with every development’s brochures, price lists and registers of transactions (s.89).

Saleable area (s.8)

Saleable area is the only basis allowed for quoting the size of a flat, or a price per square foot or square metre, in brochures, price lists and adverts. It is the floor area of the unit including any balcony, utility platform and verandah. It excludes the area of an air-conditioning plant room, bay window, cockloft, flat roof, garden, parking space, roof, stairhood, terrace and yard. Those may be listed separately but are not part of saleable area.

Sales brochure and price list

Sales brochure (ss.15–25)

The brochure must be available to the public free of charge for at least 7 days immediately before the start of sale and on every sale day, and on the development’s website.

Price list (ss.29–35)

The price list must be available for at least 3 days immediately before sale starts. It must state payment terms, discounts, gifts and other financial advantages, and the names of the estate agents the vendor has appointed (s.31). Section 30 sets the minimum number of units on each price list:

A price change must be made by revising the price list, and the unit can be sold at the new price only 3 days after the revised list is issued. Units must be sold at the listed price (s.35). No one may seek or accept an expression of intent before the price list is available (s.34), and no specific unit may be reserved before its first day of sale.

Show flats and viewing (s.42 and related)

• Show flats are optional. If any are provided, an unmodified show flat must be available before any modified one.
• Visitors may measure any show flat, and may photograph or video unmodified ones.
• In a modified show flat, removed partitions are marked by a solid line.
• For a completed development, the purchaser must be allowed to view the unit, or a comparable unit, before the PASP, unless the purchaser agrees in writing to give this up.

Sales arrangements (s.47)

At least 3 days before sale, the vendor must publish the date, time and place of sale, the units on offer, and how priority among purchasers will be decided.

PASP and ASP: the 5% and the 5 and 8 working days (ss.52–53)

On signing the preliminary agreement for sale and purchase (PASP) the purchaser pays a preliminary deposit of 5% of the price. Then:

• If the purchaser signs the ASP within 5 working days after the PASP, the owner must sign it within 8 working days after the PASP. An owner who fails to do so commits an offence, with a fine of up to HK$1,000,000.
• If the purchaser does not sign within 5 working days, the PASP is terminated, the 5% deposit is forfeited, and the owner has no further claim against the purchaser.

A working day excludes general holidays, Saturdays, and days with a black rainstorm warning or gale warning. The mandatory provisions are implied into every PASP and ASP and override inconsistent terms. Payments go to the stakeholding solicitors’ firm.

Register of transactions (ss.58–61)

From the first day of sale, the vendor keeps a register of transactions at the sales office and on the website. PASP details go in within 24 hours and ASP details within 1 working day. If a PASP is terminated, that is shown by the 6th working day after the PASP date. Purchasers who are related parties of the vendor must be flagged.

Advertisements and misrepresentation (ss.70–78)

• Adverts must not contain false or misleading information. An advert published by or with the consent of the vendor must say so.
• Printed artist’s impressions need a caution statement.
• Making a fraudulent or reckless misrepresentation to induce a purchase is an offence (s.75).
• Disseminating information likely to induce a purchase, knowing it is false or misleading on a material fact, or being reckless about it, is an offence (s.76).

These offences apply to “any person”, including estate agents and salespersons.

EAA rules for agents at first sales

The EAA’s Practice Circulars add duties on top of Cap. 621:

• Circular No. 13-04 (CR): tell purchasers at first contact whom your firm acts for; quote saleable area only; give the latest brochure and price list; no general expression of intent before the price list, and no specific expression of intent before sale starts; no mortgage assurances; incentives in writing; vendor’s written consent for adverts; transaction data only from the register of transactions; no deposits without the vendor’s authorisation; no loans to purchasers.
• Circular No. 18-03 (CR), effective 1 Dec 2018: order at first-sale sites, including a “Commander-in-Chief” to oversee the firm’s staff on site.
• Circular No. 24-01 (CR), effective 1 Nov 2024: monetary incentives offered to first-hand purchasers go in a dated pro-forma incentive letter, given before the tender, offer, registration of intent, agreement or payment, whichever is earliest.

A first sale of an undivided share in land does not need a prescribed estate agency agreement, but Practice Regulation section 7 sets minimum terms for the agent’s agreement with the developer (see Forms 3 to 6).

Sources: Cap. 621 on e-Legislation, SRPA pamphlet (2/2023), SRPA purchaser FAQ and Circular No. 13-04 (CR). Practise first-hand cases in SQE practice.