Second-Hand Housing Estate Purchase Turns Sour: Buyer Loses Deposit Due to Hidden Debts

Ms. Lin, a ‍prospective homeowner, had been saving for years to purchase her dream ​home. She ⁣finally found a second-hand housing estate‌ in‍ Tseung Kwan⁢ O that fit her budget of ‌$7 million. After ⁣signing ​a provisional sale and purchase agreement, she‌ paid a deposit of $700,000,‌ thinking she had secured her​ new ​home.

However, during the transaction process, it was ‌discovered that the original owner owed approximately $5 million to banks‌ and finance companies. Ms. Lin thought this ⁤amount⁢ could⁢ be deducted from⁣ the property price,⁤ but things took a turn⁤ for the worse. The property was found to have ​been deeded, and the original owner had owed money ⁢to another external finance company, resulting in insolvency.

The unit was “nailed” after the discovery,⁢ and Ms. Lin’s ⁣deposit​ of $700,000 was at⁢ risk of being forfeited. She questioned the professional ethics of the seller and ​his​ attorney, suspecting that they​ had deliberately concealed the incident. ‌This led​ her to‍ file a complaint with the Lawyers Association.

Suspicious Aspects of the Incident

Many ‌netizens have ‍raised concerns about the seller’s lawyer, questioning whether ⁤they had engaged in professional misconduct or had “trapped the seller.” Two⁣ major issues have been identified in the incident.

Firstly, when⁢ Ms.​ Lin ‌signed the provisional ⁤sale and purchase agreement, the unit had a third mortgage that was not disclosed in the documents from the ‍Land and Land ‌Department. This led Ms. Lin to believe that the unit only had two mortgages, with a total‌ amount less ⁤than ⁣$7 million.

Secondly, the seller’s ‍lawyer had represented both the ⁢seller and the ⁢person who carried out⁣ the ⁢three mortgages. This has raised​ concerns about the lawyer’s ⁣actions and identity, with‌ many netizens questioning ⁣whether there was something wrong with the⁢ situation.

Lessons Learned

This incident highlights the ‍importance of thorough research and due diligence when purchasing second-hand properties. Buyers should be ​cautious ⁣of units that have been ‌mortgaged or “nailed” to avoid potential pitfalls. It is also essential ⁢to work with reputable lawyers and ensure that all parties involved ​are transparent ‍about their actions ⁣and interests.