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Legal Update

The Real Estate Developers Association of Hong Kong Releases New Guidelines on Sales Descriptions of Uncompleted Residential Properties

9 October 2009
Mayer Brown JSM Legal Update


On 7 October 2009, the Real Estate Developers Association of Hong Kong (REDA) issued a new set of guidelines on the sales descriptions and information in sales brochures and advertisements of uncompleted residential properties (the "Guidelines").

Full Update

The major changes in the information required in sales brochures are :-

  • All information required under the Consent Scheme, the presale consent letter and REDA's guidelines (as appropriate) is to be contained in one booklet entitled "sales brochure". Any other booklets (e.g. promotional materials) should not be called a "sales brochure"
  • The sales brochure must not include any promotional materials such as artistic impressions or graphics
  • The sales brochure should contain the prescribed information about the project and follow the sequence as far as possible as set out in the Guidelines
  • The location plan and the Outline Zoning Plans have to meet certain dimensional requirements
  • The location plan should provide more information about nearby facilities
  • The Area Schedule of the Units should follow the area presentation format in the standardised template of REDA
  • The public open space/public facilities should be shown on plans following the pattern in the Government Lease
  • Details of all important service agreements (including the telecommunications services) agreed prior to delivery of the Units should be listed out explicitly
  • A Chinese translation of the salient points of the Deed of Mutual Covenant should be provided

In addition, there are certain requirements concerning promotional materials/advertisements. For example, printed promotional materials showing artistic impressions of the development and/or its surrounding areas must carry a statement advising the prospective purchasers to check the sales brochure and to conduct an on-site visit.

The Guidelines will apply to sales brochures bearing a "Printing Date" from November 2009 onwards.

For more information and to view the full text of the Guidelines, please click on the following hyperlink:

For inquiries related to this Client Alert, please contact:

F.K. Au ( )

Raymond Wong ( )

Learn more about our Hong Kong office and Real Estate practice.

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