Real Estate Chaowen: Buying a new building, pay attention to management fees

The comic book “Prerequisites for Buying a First-Hand Residential Property” of the First-hand Residential Property Sales and Sales Bureau (CMA) recently reminded first-hand buyers to pay attention to “miscellaneous expenses and management fees”. In fact, prospective buyers are not Easy access to relevant information. The author mentioned in this column at the end of last year that there is no mandatory requirement for developers to disclose information such as management fees and property management coverage in sales brochures and other information.

Prior to the implementation of the legislation, many first-hand properties will list the budget management fees per square foot in the sales brochures and other information, including: special funds for the building, management deposits, cleaning fees for decoration wastes, management fees, and the public Water meter deposits, etc. These fees are usually displayed in the form of management fees for several months, and it is stated which fees are non-returnable and transferable. Although the above costs have yet to be determined, it is always possible for potential buyers to budget for miscellaneous expenses. Since the implementation of the legislation, such information has not been found in the official printing materials such as sales brochures, but can only be dictated by the developer or real estate agent. Prospective buyers must record relevant information for reference.

According to the “Hong Kong Institute of Surveyors’ Good Property Management Practice Guidelines”, the Management Fee Budget covers a number of projects, including: management and maintenance of staff salaries and benefits, maintenance and improvement of common areas and facilities and utilities, cleaning and security charges. , fire and public liability insurance, landscape and garden work, management agency expenses, managerial remuneration, legal and professional fees, promotion and festival programs, inflation and interest rate fluctuations, contingency funds, etc. First-hand buyers should also take the time to ask the developer or real estate agent about the management fee coverage and details.