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EDNESDAY, APRIL 26, 1979
'SERIOUS VIEW' OF FALSE PRETENCES INVOLVING
HOME OWNERSHIP FLATS
*****
ANYBODY WHO OBTAINS A HOME OWNERSHIP FLAT BY FALSE PRETENCES FACES A MAXIMUM FINE EQUIVALENT TO THE FINANCIAL ADVANTAGE HE WOULD GAIN, THE SECRETARY FOR HOUSING, THE HON. ALAN SCOTT, SAID TODAY.
MR. SCOTT WAS SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE SECOND READING OF THE HOUSING (AMENDMENT)(NO. 2) BILL.
*HE SAID: THE PURPOSE OF CLAUSE 8 IS TO DETER INELIGIBLE PERSONS OR FAMILIES WHO TRY TO OBTAIN, OR WHO DO OBTAIN, A HOME OWNERSHIP FLAT BY FALSE PRETENCES.
+THE MAXIMUM PENALTY IS RELATED TO THE FINANCIAL ADVANTAGE WHICH COULD BE GAINED BY SUCH A PERSON OR FAMILY.
+1 AM SURE THAT THE GENERAL PUBLIC EXPECT BOTH GOVERNMENT AND THE HOUSING AUTHORITY TO TAKE A VERY SERIOUS VIEW OF SUCH AN OFFENCE.+
MR. SCOTT SAID THE MAIN PURPOSE OF THE BILL WAS TO GIVE THE HOUSING AUTHORITY POWERS TO DISCHARGE EFFECTIVELY THE RESPONSIBILITIES WHICH IT HAD ACCEPTED UNDER THE GOVERNMENT'S HOME OWNERSHIP SCHEME TO BUILD, SELL AND MANAGE FLATS.
THE EXISTING ORDINANCE, UNDER WHICH THE AUTHORITY WAS SET UP IN 1973, DEALT WITH THE PROVISION OF FLATS FOR TENANCIES BUT NOT FLATS FOR SALE.
THE GENERAL INTENTION OF THE BILL WAS TO PLACE THE AUTHORITY IN THE SAME POSITION AS PRIVATE DEVELOPERS WHO RELY ON CONVEYANCING DOCUMENTS, DEEDS OF ASSIGNMENT AND DEEDS OF MUTUAL COVENANT FOR THE SALE AND MANAGEMENT OF THEIR PROPERTY.
HOWEVER, SOME STATUTORY POWERS WERE NECESSARY BECAUSE TWO MAIN FACTORS DISTINGUISHED THE H.O.S. SCHEME FROM PRIVATE-SECTOR SALES OF FLATS: FIRST, ITS SOCIAL PURPOSE AND SECOND, THE CAPITAL ADVANTAGE TO BE OBTAINED BY SUCCESSFUL APPLICANTS FOR HOME OWNERSHIP FLATS.
THEREFORE THERE WAS A FIVE-YEAR RESTRICTION ON RESALE TO DISCOURAGE SPECULATION ON THE PART OF FLATS PURCHASERS.
ALSO, CLAUSE 4 MADE VOID ALL ASSIGNMENTS OR AGREEMENTS CONTRARY TO THE TERMS AND CONDITIONS OF THE AGREEMENT OF SALE AND PURCHASE AND THE DEED OF ASSIGNMENT, THUS PREVENTING ANY PERSON FROM OBTAINING A VALID TITLE IN SUCH A MANNER.
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