Agent

One who acts or who has power to act for another. A licensed real estate agent authorized to act under a listing or management agreement executed by a property owner (the Principal); this creates a fiduciary relationship under the law of agency.

Agency Commission

Most agents charge a fee of up to 50 per cent of one month’s rent as a fee from the tenant for a successful leasing transaction and 1% of the agreed purchase price for each sales transaction. In some cases these will be negotiable. Please note that these commissions are payable upon the signing of the formal agreements i.e. tenancy agreement or the formal sale and purchase agreement.

Appraisal

An estimate of quantity, quality or value. The process through which conclusions of property value are obtained; also refers to the report setting forth the estimate and conclusion of value.

Area Definitions

There are only limited regulations governing the quoted area of leased premises in Hong Kong and tenants should take care in confirming the net areas. The following plan and notes provide commonly used area basis:

- Gross Floor Area

Gross Floor Area shall include all areas contained within the external walls at each floor level and the whole thickness of the external walls.

In general, mechanical and electrical services rooms, refuse chambers and rooms, water tanks, carparking floors and all lifts and staircases passing through these floors shall be excluded from the Gross Floor Area calculation.

- Lettable Area

Lettable Area of whole floor shall include toilets and lift lobbies but exclude common areas such as lift shafts, stairs, plant rooms and smoke lobbies.

- Net Area

The net useable area and columns up to the external window face.

- Net Useable/Carpetable Area

The net useable or carpetable area within the premises.

The basis for measurement can vary greatly and we recommend that the net areas should be confirmed by tenants' contractors.

Air-Conditioning

Air-conditioning can be centrally installed and controllable in each room (known as "Central Air-Conditioning"), or provided by individual units. Individual units may be "window-type" (usually manually controlled) or "split-type" (usually remote controlled).

Architectural drawing

Includes all architectural contracts and drawings such as plot plans, floor plans, elevations, sections, details, schedules, etc., and any architectural drawing that forms a part of the contract documents. Exceptions include mechanical, electrical and structural drawings, as well as specialized data that are normally handled by specialists in those fields.

Asking Rental

Rental quoted by landlord, usually with rooms for negotiation.

Assignment

The transfer of leasehold interest in a property to a second party.

As-is Condition

The existing condition of real estate, prior to any improvements contemplated under a lease