ABSTRACT
This chapter discusses the disclosure of information on transactions in sales of first-hand residential properties: this essentially concerns the transaction price and transaction volume achieved in a given day of sale. It revolves around the question of how developers disclose past transaction records. To answer the question, the discussion begins with the signing of the preliminary agreement for sale and purchase. The majority of measures on compulsory disclosure of past transaction information imposed by the Lands Department Consent Scheme and endorsed by the Residential Properties (First-hand Sales) Ordinance are appropriate and, as practice suggests, have been effective in promoting transparency and eliminating information asymmetry between developers and purchasers. As a celebrated improvement, newly designed Register of Transactions provides comprehensive information on details of non-typical transactions: examples, en-bloc sale, related party transactions, discounted transactions and collapsed transactions. The arrangement complements the requirement to disclose transaction details to public upon signing of preliminary agreement for sale and purchase (PASP) within 24 hours.
