XN000022-1987-11-11 — Page 32

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WEDNESDAY, NOVEMBER 11, 1987

DMC GUIDELINE WILL IMPROVE BUILDING MANAGEMENT

* * * * *

A SET OF GUIDELINES FOR THE DRAFTING OF NEW DEEDS OF MUTUAL COVENANT HAS BEEN COMPLETED AND WILL BECOME EFFECTIVE ON DECEMBER 1,

THE SECRETARY FOR DISTRICT ADMINISTRATION, MR T.H. CHAU, TOLD THE

LEGISLATIVE COUNCIL TODAY (WEDNESDAY)

MR

SPEAKING IN THE RESUMED DEBATE ON THE GOVERNOR'S ADDRESS, CHAU SAID THESE GUIDELINES WERE DESIGNED TO ENSURE A BETTER BALANCE OF INTEREST BETWEEN THE DEVELOPER AND THE OWNERS AND SHOULD PROVIDE A BETTER BASIS FOR THE MANAGEMENT OF THE COMMON PARTS OF A DEVELOPMENT.

"ALL NEW RESIDENTIAL AND COMMERCIAL BUILDINGS, UNLESS EXEMPTED BY THE GOVERNMENT, WILL COME UNDER THIS AMBIT, MR CHAU ADDED.

EXPLAINING THE GUIDELINES, HE SAID THEY WOULD LIMIT THE PERIOD OF MANAGEMENT BY DEVELOPER TO TWO YEARS, AFTER WHICH THE OWNERS WOULD BE FREE TO APPOINT THEIR OWN MANAGER.

BE CLEARLY

SPECIFIED.

THE POWERS AND OBLIGATIONS OF MANAGERS WOULD DEFINED AND A SCALE OF REMUNERATION FOR MANAGERS WOULD BE THE GUIDELINES WOULD ALSO REQUIRE A CLEAR DEFINITION OF THE AREAS IN A BUILDING, HE CONTINUED.

COMMON

AS REGARDS ENFORCEMENT, MR CHAU SAID THE GOVERNMENT EARLIER STIPULATED THAT ALL DEEDS OF MUTUAL COVENANT RELATING TO NON-INDUSTRIAL LEASES GRANTED SINCE FEBRUARY 1986 WOULD HAVE TO VETTED BY THE REGISTRAR GENERAL.

10

HAD

NEW

BE

'APPROVAL WILL BE GIVEN ONLY WHERE THE REGISTRAR GENERAL IS SATISFIED THAT THE GUIDELINES HAVE BEEN FOLLOWED, HE SAID.

IN ADDITION, THE LAW SOCIETY HAD INCORPORATED THE GUIDELINES IN A "PRACTICE DIRECTION'

++ WHICH SOLICITORS WERE OBLIGED TO FOLLOW IN PREPARING DEEDS OF MUTUAL COVENANT.

"THIS MEANS THAT NEW DEVELOPMENTS BUILT UNDER OLD LEASES WILL ALSO BE COVERED BY THE GUIDELINES, HE ADDED.

ON THE EXISTING DEEDS OF MUTUAL COVENANT, MR CHAU SAID SOME PEOPLE HAD SUGGESTED THAT WHERE THEY WERE FOUND TO BE OPPRESSIVE AND UNFAIR, OWNERS SHOULD BE ALLOWED TO PROPOSE AMENDMENTS.

BUT THIS SUGGESTION WOULD HAVE THE EFFECT OF ALTERING EXISTING CONTRACTUAL RIGHTS AND OBLIGATIONS AND ITS IMPLICATIONS MUST THEREFORE BE CAREFULLY CONSIDERED.

MR CHAU SAID AN INTER-DEPARTMENTAL WORKING GROUP HAD BEEN SET UP TO STUDY THE PROPOSAL IN DETAIL.

/ON THE