From February 28, buyers can choose to have mortgage loan proceeds transferred electronically from their bank directly to the seller’s bank through the interbank payment system. Photo: Sam Tsang

Expanded Hong Kong scheme allows resale homebuyers to pay sellers directly

The Hong Kong Monetary Authority said the expanded Payment Arrangements for Property Transactions (PAPT) scheme would take effect on February 28, covering the bulk of resale home deals in the city. The announcement was made jointly with the Hong Kong Association of Banks, the Law Society of Hong Kong and the Estate Agents Authority. Under…

The Hong Kong Monetary Authority said the expanded Payment Arrangements for Property Transactions (PAPT) scheme would take effect on February 28, covering the bulk of resale home deals in the city. The announcement was made jointly with the Hong Kong Association of Banks, the Law Society of Hong Kong and the Estate Agents Authority.

Under the arrangement, buyers can choose to have mortgage loan proceeds transferred electronically from their bank directly to the seller’s bank through the interbank payment system, instead of routing funds through lawyers’ client accounts. Sellers could receive the money as early as the completion date, and no additional fees would be charged for using the scheme, the HKMA said.

Buyers and sellers who want to use the option can inform their property agent and add a clause to the provisional sale and purchase agreement. They may switch back to the traditional payment method up to eight working days before completion.

HKMA deputy chief executive Arthur Yuen Kwok-hang said the arrangement would give buyers and sellers “a safer and faster payment option”, adding that the move reflected broader efforts to modernise payment practices in the property market.
From February 28, buyers can choose to have mortgage loan proceeds transferred electronically from their bank directly to the seller’s bank through the interbank payment system. Photo: Sam Tsang
From February 28, buyers can choose to have mortgage loan proceeds transferred electronically from their bank directly to the seller’s bank through the interbank payment system. Photo: Sam Tsang

Officials said the expansion would cover close to 90 per cent of resale residential transactions, focusing on mainstream deals with relatively simple structures. A pilot conducted in the third quarter of 2025 involving 10 second-hand transactions showed the arrangement was workable, the HKMA said.

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