With his son and daughter growing up, Mr Ku's home had grown smaller. He decided to look for a larger flat in the same area for a change. After viewing a number of flats, Mr Ku found one to his liking and, after some bargaining, he and the vendor agreed on a price of $3 million.
Before signing the provisional agreement for sale and purchase, Mr Ku vaguely remembered that there were a refrigerator and a washing machine in the kitchen. So he asked the agent whether the appliances would come with the flat. The agent said that it was clearly stated in the agreement that the price of the flat included all the electrical appliances and furniture. Mr Ku thought that since it was clearly written down, there was no need to go into the matter further.
On the completion date, Mr Ku and the agent went to inspect the flat, only to discover that both the washing machine and the refrigerator in the kitchen had been removed. Only some worn-out furniture was left in the sitting room. When Mr Ku argued with the vendor on this, the vendor said in defence that there was no refrigerator or washing machine at the time the flat was inspected nor was it stated in the agreement that the electrical appliances in the flat included a washing machine and a refrigerator. He would therefore refuse to give Mr Ku any washing machine or refrigerator or to make compensation. The vendor also said that the furniture left behind were included and if Mr Ku thought them useless, he could throw them away. Mr Ku was furious and asked his solicitor to postpone the transaction so that they could come to an agreement on the furniture and electrical appliances with the vendor. But the solicitor said that the formal agreement stipulated that disputes on furniture and electrical appliances would not affect completion. Despite his anger, Mr Ku had no choice but to complete the transaction as scheduled.
If Mr Ku had properly recorded in the provisional agreement the details of the furniture and electrical appliances, he could have avoided the dispute. Under most circumstances, unless there is provision to the contrary, the majority of formal agreements for sale and purchase provide that completion shall not be affected by disputes on furniture and electrical appliances and the purchaser's remedy only lie in damages. Also, in accordance with the Practice Regulation, before the signing of an agreement for sale and purchase or a lease, the estate agent has to establish what is to be included in the sale of the residential property and prepare a written inventory for the purpose of safeguarding the interests of the parties.
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