EAA Publications
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| The Freshman |
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| Inspection should be detailed
and complete |
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 Led
by an estate agent, Mr Tang viewed three flats in a row. The
prices were within his budget but all the flats had only two
bedrooms. In order to allow more space for his growing children,
Mr Tang had hoped to find a three-bedroom flat. The agent then
introduced to him another flat, calling it a bargain. It was
priced about the same as the other flats but, according to the
agent, had three bedrooms.
By the time they got to the flat it was already dusk. Mr Tang
asked the agent why he did not turn on the lights to let him
see more clearly. The agent's answer was, "There is no
power! The tenant moved out six months ago and electricity supply
has been cut."
It was getting dark and Mr Tang, racing against time, quickly
walked through the whole flat. He opened two doors to inspect
the rooms behind the doors, but when he got to the third door
the agent said that he did not have the key to the room. He
told Mr Tang that regardless of the size, it was a room after
all. Seeing that Mr Tang was a little hesitant, the agent urged
him to decide on the spot, and said that quite a number of prospective
purchasers had also inspected the flat and were planning to
make offers to the owner. Mr Tang thought it a chance not to
be missed and signed a provisional agreement for sale and purchase
there and then. It was only on inspecting the flat for the second
time that Mr Tang discovered that there were only two bedrooms.
It turned out that the third door opened to a very small closet.
The flat was far from the three-bedroom flat he thought had
purchased.
Leaving aside the question whether the agent had deliberately
misled Mr Tang or he had been equally ignorant himself, Mr Tang's
signing an agreement for sale and purchase without making a
thorough inspection of the property no doubt provides a lesson
for all property purchasers.
The Practice Regulation stipulates that the agent shall arrange
for and accompany the purchaser to inspect the property (including
common areas and car parking spaces, if any). To provide services
in good faith and to protect his client's interests, the agent
should also explain to the purchaser all the relevant information
about the property so that the purchaser can make the appropriate
decision.
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