(IV) Formal Sale and Purchase Agreement

Although a provisional sale and purchase agreement is a legally binding contract, it only contains basic terms and therefore the protection provisions for the contracting parties (especially the purchaser) are limited. A formal sale and purchase agreement should be drafted by a solicitor based on the provisional agreement. A formal agreement contains terms that are more detailed and is intended to replace the provisional agreement. In case the parties fail to sign the formal agreement (e.g. they cannot agree on all the terms of the formal agreement), they are still bound by the provisional agreement.

1. What are the usual steps for signing the formal sale and purchase agreement and paying the further deposit?



2. I (as a purchaser) signed the provisional agreement but I want to add my spouse's name or my parents' names into the subsequent formal agreement. Can I do that?



3. If I want to sell or transfer my flat to a member of my family or a relative, what should I be aware of?



4. How much stamp duty is payable for the sale and purchase agreement for the property?



5. Is there any difference between 'residential' and 'commercial' properties as far as stamp duty is concerned?



6. Under what circumstances can the purchaser apply for deferring payment of stamp duty?



7. Should the sale and purchase agreement for the property be registered at the Land Registry? How much is the registration fee?



8. How much will I have to pay the solicitor for a property transaction? Is there a fixed scale?