Document background
The Option To Buy Contract is a crucial document in Hong Kong property transactions, providing a secure mechanism for parties to lock in potential property purchases while maintaining flexibility. It is commonly used in both commercial and residential property transactions where buyers need time to arrange financing or conduct due diligence, or where sellers wish to secure a potential sale while maintaining ownership in the interim. The document must comply with Hong Kong's common law system and statutory requirements, particularly the Conveyancing and Property Ordinance and Stamp Duty Ordinance. It typically includes detailed provisions about the option premium, exercise period, purchase price, completion requirements, and property specifications. This type of agreement is particularly valuable in Hong Kong's dynamic property market, where timing and price certainty are often crucial factors in property transactions.
