XN000022-1991-08-07 — Page 3

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WEDNESDAY, AUGUST 7, 1991

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A PURCHASER WILL BE REQUIRED TO DECLARE THR PRICE HE PAID FOR HIS FLAT AND THE PERSON FROM WHOM HE BOUGHT THE PROPERTY SO AS TO PROVIDE THE GOVERNMENT WITH BETTER INFORMATION FOR RECORD, STAMP DUTY AND PROBABLY TAX PURPOSES. THE EXACT AMOUNT AND FORM OF INFORMATION AS WELL AS THE TERMS OF THE CONDITIONS OF CONSENT ARE STILL BEING WORKED OUT AND HENCE THIS MEASURE WILL BE INTRODUCED A FEW MONTHS FROM NOW.

RE-SALE OF UNCOMPLETED FLATS ALLOCATED OR RESERVED THROUGH BLOCK ALLOCATIONS, AS IS COMMON FOR THE STAFF OR BUSINESS ASSOCIATES OF DEVELOPERS, BEFORE COMPLIANCE WITH THE LEASE CONDITIONS WILL BE RESTRICTED. THIS IS HOWEVER A COMPLEX ISSUE AS THERE MAY BE OCCASIONS, SUCH AS WHEN THE PROPERTY MARKET IS LOW, WHEN DEVELOPERS HAVE TO SELL WHOLESALE TO IMPROVE THEIR CASH FLOW. SO THE TERMS TO BE INCLUDED IN THE CONSENT SCHEME FOR THE PURPOSE HAVE TO BE VERY CAREFULLY WORDED. ТНІЯ MEASURE CANNOT THEREFORE TAKE PLACE IMMEDIATELY BUT THE GOVERNMENT HOPES THAT IT WILL BE INTRODUCED WITHIN THE NEXT FEW MONTHS.

REACHING ITS DECISION TO ADOPT THE ABOVE NEW MEASURES, THE GOVERNMENT HAS TAKEN INTO ACCOUNT THE STEEP RISE IN PRICES IN UNCOMPLETED FLATS AND THE VIEWS EXPRESSED BY OMELCO MEMBERS, THE LAND AND BUILDING ADVISORY COMMITTEE, THE CONSUMER COUNCIL, REAL ESTATE DEVELOPERS AND VARIOUS PROFESSIONAL INSTITUTIONS.

THE GOVERNMENT HAS ALSO SINCE THE BEGINNING OF THIS YEAR REACHED AGREEMENT WITH THE REAL ESTATE DEVELOPERS ASSOCIATION ON SALES PROCEDURES WHICH HAVE NOW BEEN INCORPORATED IN THE CONDITIONS FOR CONSENT.

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THESE REQUIRE DEVELOPERS TO MAKE AVAILABLE AND ANNOUNCE AVAILABILITY OF THE SALE BROCHURES AT LEAST ONE WEEK BEFORE COMMENCEMENT OF THE SALE AND THE PRICE LIST OF ALL UNITS OFFERED SALE NO LESS THAN THREE DAYS PRIOR TO THE COMMENCEMENT OF THE SALE; AND TO ANNOUNCE THE NUMBER OF UNITS TO BE OFFERED FOR SALE EACH TIME SO THAT A PROSPECTIVE PURCHASER MAY ASCERTAIN HIS CHANCE BEFORE JOINING A QUEUE.

IN ADDITION, THERE ARE REQUIREMENTS ON THE STEPS TO TAKE WHEN QUEUES OF POTENTIAL PURCHASERS OF UNCOMPLETED FLATS IN LARGE DEVELOPMENTS BEGIN TO FORM.

MR BARNES POINTED OUT THAT BOTH THE NEW AND EXISTING MEASURES ARE GEARED FOR UNCOMPLETED FLATS IN THE CONSENT SCHEME WHICH COVERS ESSENTIALLY ALL NEW GRANTS OF LAND. UNDER THE SCHEME, A DEVELOPER MUST SATISFY A NUMBER OF CONDITIONS RELATED TO THE PROPOSED SALE OF UNCOMPLETED RESIDENTIAL FLATS BEFORE THE LAND OFFICER GIVES HIS CONSENT TO THE SALE.

AS REGARDS UNCOMPLETED FLATS IN REDEVELOPMENTS WHICH ARE NOT COVERED BY THE CONSENT SCHEME, THE GOVERNMENT HAS FEW CONTROLS THEIR SALE PROCEDURES.

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