Document background
The Letter of Offer to Purchase Property is a crucial initial document in Hong Kong's property transaction process. It is typically used when a prospective buyer wishes to formalize their interest in purchasing a property before proceeding to a full Agreement for Sale and Purchase. The document serves as a preliminary agreement that outlines the key terms of the proposed transaction, including the offer price, payment structure, completion timeline, and any specific conditions. While not all elements of the letter are legally binding, it demonstrates serious intent and often includes a good faith deposit. The document must comply with Hong Kong property law requirements and typically precedes more detailed legal documentation. This letter is particularly important in Hong Kong's fast-moving property market, where it helps secure the buyer's interest while due diligence and formal documentation are being prepared.
