2023/05/02 New Payment Arrangement for Property Transactions (“PAPT”)
With the aim to further protect residential mortgage customers and reduce credit and operational risks, the Hong Kong Association of Banks has launched pilot arrangements to provide alternative means of payment of funds for mortgage refinancing transactions. It basically enables the transfer of funds from bank to bank as an alternative to the current practice of routing the payment through the client accounts of a law firm involved in the transaction.
The Hong Kong Association of Banks has announced that from 7 November 2022, PAPT is offered to customers of banks for mortgage refinancing transactions. This means customers of banks could elect either to have their funds transferred between banks directly, or through the traditional routing of the client accounts of a law firm.
Our Firm has been in liaison with banks on the latest updates and arrangements and properly geared up for whatever option clients take. We welcome clients to consult us on this new PAPT arrangements and we would be happy to help.
This Article has been published in our firm’s 12th issue of Newsletter