11
(d) Section 14(5) provides for the Crown lease to be deemed to be issued in respect of each parcel of land that is carved out of the main lot by means of a deed; each section will be deemed to be held under its own Crown lease in terms of the Conditions of Sale.
(e) Section 14(6) deals with the relationship between extension areas to parent lots, and the parent lots themselves where a legal estate has been acquired in the parent lot because a Crown lease has been deemed to have been issued under section 14(1) or has actually been issued. Normally documents granting extension areas do not contain the conditions precedent referred to in section 14(1) and thus no legal estate could be acquired for the extension area until a Crown lease had actually been issued. The extension area will follow the status of the parent lot unless further conditions precedent are imposed.
7.
Clause 7 adds section 14A to avoid any doubt there may be as to the effect of documents modifying lease conditions which are not executed under seal (e.g. modification letters).
8. Clause 8 amends section 16(1) to make it more closely follow section 62 of the Law of Property Act 1925 from which it was originally derived.
9. (a) Clause 9 amends section 20(1) so as to extend protection to successors in title (such as assignees) to the original person where there has been a dealing by such a person with a corporation, and a deed has been executed in accordance with the subsection.
(b) Section 20(2) provides that a deed executed by an attorney should bear the attorney's own seal to follow section 74(3) of the Law of Property Act 1925 more closely.
10. (a) Clause 10(a) amends the marginal note to section 35 to more
accurately reflect its contents.
(b) Clause 10(b), by subsection (1A), clarifies that section 41 applies to implied covenants. Subsection (1B) states that the benefit runs with the land and will thus bind future owners. Subsection (1C) clarifies that, despite the definition in section 2 of the Ordinance, an assignment for the purposes of subsection (1)(a) to (d) does not include a legal charge. A legal charge is covered by subsection (1)(e). It was also felt that, unless the contrary is expressed in the relevant document, the liability of joint parties for any breach of the implied covenants should be joint and several so that each is liable to the full extent of the breach; hence subsection (1D).
11. Clause 11 amends section 39(1) to correspond exactly with the expression used in sections 35, 40 and 41 dealing with the running of the benefit and burden.
12. Clause 12 repeals and replaces section 41 which deals with the enforcement of covenants between flat owners in multi-storey buildings. This is an extremely complex area of the law and doubts have been expressed regarding the efficacy of the present section 41 because of the negative manner in which the covenants are said to be enforceable. For the avoidance of any doubt this provision has now been recast in a positive manner. It has also been expanded to include covenants relating to other land e.g. a large, staged development may be carved out in sections which