Featured flats are available in both primary and secondary markets. Generally speaking, featured flats refer to flats in the same building that are different from other flats in terms of spacing or configuration, including those with rooftops, podiums, gardens, duplexes and interlinked flats.
There are a lot of points to note when purchasing a featured flat. First of all, for second-hand flats with a podium, the most important thing is to check the register or the Deed of Mutual Covenant (DMC) to find out whether there are any unauthorised building works (UBWs), alterations to the paperwork, and whether there are any problems in nailing down the lease, and so on. In addition, buyers should also pay attention to the plans of the flats to check whether there are any irregularities.
It is worth noting that there have been cases where the Buildings Department (BD) has issued removal orders but failed to nailing the deeds to the unauthorised flats after a long time, and the buyers have not found any problems when they checked the registers, and they have to bear the responsibility of removing the unauthorised building works in the end. Therefore, the absence of a removal order from the BD in the search does not mean that the property is free from problems, and professional help can be sought when needed.
If you are buying a duplex or attached flat, you should pay attention to whether the flat is "original attached" or "self-contained attached". As the name suggests, "original connected" refers to connected flats that have been pre-connected by the developer at the time of sale, while "self-constructed connected" refers to the original owner's modification of the developer's design.
Therefore, when purchasing a self-contained linked flat, buyers should first make sure that the alterations have been incorporated into the rules and approved by the Buildings Department, or else it will be a non-compliant alteration, which will affect the resale of the flat in the future. Unauthorised alterations to a self-contained flat may violate the Deed of Mutual Covenant, Fire Safety Ordinance, etc. The BD may require the owner to reinstate the altered part of the flat, which will incur a high reinstatement cost.
There are not many rooftop flats on the market, but there are a lot of things to look out for. Buyers should understand the rooftop ownership and right to use the rooftop, whether it belongs to the flat owner or the common parts, i.e. it is jointly owned by all owners of the building. In addition, buyers should also pay attention to understand how the maintenance responsibility of the rooftop is allocated, and if maintenance works are required, who needs to pay for the maintenance costs.
Besides, buyers should pay attention to the restrictions on the use of the rooftop in the Deed of Mutual Covenant (DMC) of the building. In some buildings, the DMC will state in detail that residents are not allowed to have barbecue on the rooftop, etc., which must be complied with, or else there is a chance of being sued by the Owners' Corporation.
Last but not least, we have to pay attention to the bank's valuation. As the number of transactions is relatively small, the bank may not be able to give a full valuation. In case of under-estimation, the loan amount will be lower than expected and the buyer may have to make up the difference in price, so it is important to set aside a little more down payment to avoid tarting up the property.
