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  • 3 Post By Scorpio01
  • 2 Post By ArrynField

Apportionment Account on Property Purchase

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  1. #1

    Join Date
    Dec 2016
    Posts
    290

    Apportionment Account on Property Purchase

    Coming to this thread because my lawyer is not very helpful since property handover.

    I was aware of some expenses I need to deal with regards to Apportionment Account such as management fees, rates and government rent.

    What I was not aware of was a "Management Fee deposit". The management company issued a letter to the previous owner that "Deposit is not refundable but transferrable upon the completion date even without official receipt". Now the previous owner is requesting that I cover this fee -- I've a few friends in the same estate that never had to pay this fee when buying a property.

    Can anyone advice me if I should dispute this?


  2. #2

    Join Date
    Jun 2008
    Location
    HK
    Posts
    254

    how much money are we talking about?

    If the management fee is transferred to the new owner, then you need to pay that amount to the old owner, what is the issue there?

    Once you sell the property, the new owner will have it transferred to his name and he will pay you the same.

    it is just a transferrable deposit.

    traineeinvestor, emx and redslert like this.

  3. #3

    Join Date
    Nov 2019
    Posts
    2,715

    It’s not a fee, it’s the Management Fee Deposit, which is paid by all owners, as explained by Scorpio.

    You should request a copy of the receipt under your name. from the Management Company. This is something that your solicitor should give you.

    Some unscrupulous management companies require a copy of the original receipt, before they transfer the deposit. If the receipt is lost, they charge a few thousand dollars and issue a certified copy of the deposit slip. In this case, a fee is payable, but this would be settled by the previous owner prior to transfer of a deposit.

    shri and emx like this.

  4. #4

    Join Date
    Mar 2024
    Posts
    1,197

    The moral of this story is that next time you should get a better lawyer. All this sort of stuff should be handled by them and built into the final payments on completion. Sounds like you had a dud solicitor.