SUNDAY, APRIL 23, 1989
8
HE EXPLAINED THAT A DMC IS PREPARED BY SOLICITORS APPOINTED BY THE DEVELOPER AND ENTERED INTO BETWEEN THE DEVELOPER AND THE FIRST
PURCHASER.
ASSIGNMENT OF THE UNITS IN THE DEVELOPMENT TO SUBSEQUENT PURCHASERS ARE SUBJECT TO THE BENEFIT AND BURDEN OF THE DMC. FOR THIS REASON, THE PURCHASER HAS NO REAL FREEDOM TO NEGOTIATE THE TERMS OF THE DEED,
"THIS SITUATION CAN BE OPEN TO ABUSE WISHING TO TAKE ADVANTAGE OF THIS OPPORTUNITY TO THE DEED UNFAIRLY FAVOURING THEM AT THE EXPENSE THE SPOKESMAN SAID.
BY SOME DEVELOPERS HAVE PROVISIONS OF OF THE PURCHASERS,
"
THE SERIOUSNESS OF THE SITUATION HAD LED TO THE INTRODUCTION ON DECEMBER 1, 1987 OF SPECIFIC GUIDELINES FOR THE DRAFTING OF NEW DMC'S.
THE GUIDELINES WERE DRAWN UP BY THE REGISTRAR GENERAL'S DEPARTMENT IN CONJUNCTION WITH THE LAW SOCIETY AND THE CITY AND NEW TERRITORIES ADMINISTRATION.
THESE WERE AIMED AT STRIKING A FAIR BALANCE BETWEEN THE RIGHTS OF DEVELOPERS AND THOSE OF THE PURCHASERS.
AS FROM DECEMBER 1, 1987, SOLICITORS HAVE HAD ΤΟ FOLLOW THE GUIDELINES IN DRAWING UP NEW DMC'S.
AS FOR DMC'S ENTERED INTO BEFORE THAT DATE, THE WORKING GROUP HAS SUGGESTED THAT OWNERS OF ALL RESIDENTIAL FLATS CURRENTLY BOUND BY UNFAIR AND OPPRESSIVE CLAUSES BE GRANTED RELIEF THROUGH THE INTRODUCTION OF LEGISLATION CONTAINING A CODE OF FAIR CLAUSES MODELLED ON THE EXISTING GUIDELINES.
THE PROPOSED CODE PROVIDES FOR, AMONG OTHER THINGS, · A PROCEDURE FOR THE TERMINATION OF A MANAGER'S SERVICE AFTER TWO YEARS FROM THE COMING INTO FORCE OF THE ENABLING LEGISLATION, A FAIR WAY OF SHARING MANAGEMENT EXPENSES, THE KEEPING OF FINANCIAL ACCOUNTS AND PREPARATION OF ANNUAL BUDGETS BY THE MANAGER, A DETAILED INTERPRETATION AS WELL AS THE USE OF COMMON PARTS.
"THE LEGISLATION WOULD PROVIDE THAT ΤΟ THE EXTENT THAT EXISTING DMC PROVISIONS CONTRAVENE THE CODE, THEY WILL BE SUPERSEDED,
SPELT AND THAT TO THE EXTENT THAT THEY OMIT OBLIGATIONS
OUT IN THE CODE, THEY ARE TO BE SUPPLEMENTED ACCORDINGLY," THE SPOKESMAN SAID.
"THE WORKING GROUP DOES NOT CONSIDER THAT THIS WOULD CONSTITUTE AN UNJUSTIFIABLE INTERFERENCE WITH PRIVATE CONTRACTUAL RIGHTS BECAUSE OF THE ABSENCE OF ANY REAL FREEDOM TO NEGOTIATE THE TERMS OF THE DMC'S IN THE FIRST INSTANCE,' HE SAID.
..
FOR THE SAME REASON, THE WORKING GROUP DOES NOT CONSIDER THAT THIS PROPOSED RELIEF WOULD GIVE RISE TO ANY JUSTIFIABLE CLAIMS FOR COMPENSATION, HE ADDED.
THE WORKING