According to Macao Daily News, a couple teaching at a university is suspected of selling a MOP5 million luxury flat and two car parks located at Rua de Nam King in Taipa to two buyers at the same time, receiving deposits totalling MOP1.8 million.  Similar cases periodically happen in Macao as no comprehensive measures are in place to curb such practices. Property agents can only make judgments based on their experience and interpersonal network in circumstances like this. The real estate sector believes, therefore, that it is time to review and improve the property transaction law.

At present, when an agent deals with a firsthand property sale, he will first approach the Housing Bureau to check if the name of the property owner has changed. For secondary market property, he will check whether it is vacant or has been consigned for sale in order to prevent falling into a trap whereby the property has been sold to several buyers. If the seller intends to cheat, agents can only maintain high vigilance and be sensitive to the situation to prevent such incidents. In this case, the buyer was required to make a large deposit and it was this that alerted the broker as under normal circumstances only 10% of the property price is paid as deposit. One should be more vigilant if the owner claims that he needs to cash out his property immediately and requests an early settlement of the deposit.

A property re-consigned for sale can usually be advertised through the newspapers or property agents. If the agents are paying close attention to market conditions, they will know whether the property has been consigned for sale earlier; and if they have built up a good interpersonal relationship they can consult fellow agents to ascertain if anything is amiss with the property in order to reduce the frequency of similar cases.

Currently, the registration of a property owner can be checked at the Housing Bureau. Although property registration is protected by law there are still many loopholes in the existing legislation. At the end of the day, there is no way to avoid being cheated if the seller intends to do so. In a property transaction, the buyer usually pays the stamp duty and registers the property after the deed is made. Even if the deposit has been settled, the property will not be registered. Therefore, one can hardly be aware that the property has been simultaneously sold to several buyers.

It is believed that there is a necessity for the revision and improvement of the current law. In Hong Kong, both the seller and buyer are required to hire solicitors to witness the transaction process; these solicitors act in opposing positions on behalf of their respective client and are responsible for any problem or omission detected in the transaction process. As they stand in ‘opposing’ corners, the seller and buyer is well protected. Hence, there are fewer cases of property being sold to several buyers at the same time in Hong Kong compared to Macao, where only one lawyer is required to act on behalf of both parties.