It is recommended to buy an existing village house.

Buying a second-hand village house can avoid the risk of government not granting the Certificate of Compliance. At present, new-style village houses are generally built like housing estates with well-managed gardens, parking lots and playground.

Ensure ownership is clean

Before signing a Provisional Sale and Purchase Agreement, it is advisable to check information about its ownership, confirm the owner’s identity, and check the Certificate of Compliance, as well as assignment deed, in order to avoid problems arising from the resale. If it is a “small house” or “Ding” house owned by a male indigenous villager in the New Territories, it is necessary to check if the owner has paid land premium to the government.

Check banks’ valuation

Banks are generally more cautious when extending mortgages for village houses. Buyers are advised to check with the bank for the valuation and information about a mortgage loan before signing a Provisional Sale and Purchase Agreement to prevent lower-than-expected valuation which migh require a bigger down payment.

Ensure unauthorized structures are demolished

Check the property if it has illegal structures, such as a rooftop glass house or an enclosed terrace, as this can adversely affect a mortgage application. Any illegal structure has to be demolished and the original condition of the property must be restored before it can be offered for resale. Before signing a contract, the buyer should clarify who is responsible for paying the demolition cost.

Garden roof should be included in the Assignment Contract

If a village house is sold with a garden or a roof, it is recommended to check if it is included in the Assignment Contract or if it’s not possible to know the relevant ownership, such as if it is leased or disallowed by government regulations.

Find out the right-of- way or ownership of the road to avoid any disputes

Ownership of a village house does not necessarily include right of way to the property.  To avoid any dispute, a car owner must find out if the access road to the village house involves private access which will entails a road user fee.

Pay close attention to communication facilities

Generally, village houses are located in rural areas where communications may be poor and even problematic. It is recommended to check if there are any problems with TV reception, mobile Internet calls and home broadband services.