XN000022-1997-04-23 — Page 49

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Reply:

Mr President:

(a)

(b)

the Administration agrees that the quality and reliability of information contained in the sales brochures of local residential flats should be improved to better protect the interests of home purchasers. We are taking steps to regulate the sales descriptions of local uncompleted flats by legislation and aim to introduce a bill for this purpose into the Legislative Council before the end of this year. The proposed legislation will impose statutory obligation and liabilities on developers to provide adequate and reliable information in their sales brochures. In respect of car park spaces, the proposed legislation will require that the sales brochure contains a description of the car park spaces within the development, including the respective numbers for sale, for rent, and for visitors. If the developer has not yet decided on these matters when he prints the sales brochure, the proposed legislation will require that this fact be stated clearly in the sales brochure.

we have no intention of introducing land grant clauses requiring the provision of car park spaces for rental. Our considerations are-

First, the existing car park clause under the lease conditions already restricts the use of car parks by residents inside the lot and bona fide visitors only.

Second, the proposed measure has its drawbacks. The number of car parks available for sale would be reduced as a result, thereby further driving up their prices. Ownership of car parks would be more discriminatory. Moreover, requiring a developer to provide car parking spaces only for rental is a measure which imposes a financial burden, i.e. the commitment of funds, on the developer over an indefinite period and needs very careful thinking.

To strike a balance, we are considering to restrict, in future residential land grants, the sale or underletting of car parks to building owners of the development only.

End

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