Starting Feb 28, residential properties' transanctions in secondary markets can be done directly via banks

Starting February 28th, payments for the sale and purchase (S&P) of residential properties in the secondary market can be conducted through banks, without going through lawyers.

The new procedure is called the "Payment Arrangements for Property Transaction" or PAPT. It streamlines conventional payment methods in which mortgage loan proceeds need to be settled via the solicitors' accounts using physical cheques.

Under PAPT, the buyer's mortgage loan proceeds will be transferred to the seller's bank through the interbank e-payment system, enabling the seller to receive the sale proceeds on the completion day at the earliest.

That also prevents repeating previous incidents, in which some buyers' mortgage funds were frozen after the solicitors encountered operational issues.

Hong Kong Monetary Authority Chief Executive Eddie Yue says the HKMA is committed to promoting e-payment for property transactions to improve efficiency and security.