13
deed of assignment is used for both legal and equitable estates, it was felt that the same covenants should be implied in the case of an assignment of the equitable estate as well as the legal estate. By clause 22, the heading in Part I of the First Schedule is amended so as to delete the words "the legal estate in". The words "a Crown lease" in section 35(1)(a) would then, under the definition in the Interpretation and General Clauses Ordinance, include an agree- ment for a lease and would thus include an assignment of the equitable estate.
(b) In view of section 41(8), an original Crown lessee will no longer be liable on his covenants in the lease after he has assigned his interest, except where the land is partitioned. The implied cove- nants contained in sub-Part A of Part I are thus only required where such partitioning occurs.
(c)
It was felt that sub-Parts A and B should be expanded to require compliance with any covenants in the Deed of Mutual Covenant, where there is one to regulate the rights of owners on multi-storey buildings. The indemnity covenants are no longer required by virtue of section 41(8) as lessees only remain liable while they have an interest in the land, and the responsible parties may be sued direct.
23. Clause 23 amends Part II of the First Schedule to be consistent with wording used in sub-Part B of Part I and now includes a reference to a Deed of Mutual Covenant.
24. Clause 24 amends Part V of the First Schedule to be consistent with sub-Part B of Part I and now includes a reference to a Deed of Mutual Covenant. There is an additional covenant for performance of the cove- nants during the subsistence of the legal charge.
25. Clause 25 amends the Second Schedule, paragraph 9 of which deals with "good title”. The word "certified” in relation to deeds is deleted, and a new paragraph 13 is to be included to protect a purchaser by providing that the vendor's solicitors act as agents for the vendor for the receipt of the purchaser's deposit. This follows the Law Society's existing recommended clause.
26. Clause 26 amends the Third Schedule so that in Forms 1, 2, 3, 4 and 5 the word "property" is replaced by "Lot Number". In Form 3, paragraph 3 is expanded to specify that the charge is by way of equitable mortgage as indicated in the Heading. Forms 4 and 5 are similarly expanded to include "by way of legal charge" to follow the heading, and to refer to the covenants in the Crown lease.
27. Clause 27 amends the Fourth Schedule to correct a spelling error. 28. Clause 28 amends section 9 of the Law Amendment and Reform (Consolidation) Ordinance (Cap. 23) as sections 2 and 3 have been repealed and sections 4 and 10 have been re-enacted in the Conveyancing and Property Ordinance (Cap. 219).
29. Clause 29 amends section 2A(2) of the Land Registration Ordi- nance to cover the case where the floating charge was effected on 1 November 1984.
30. The Bill has no Public Service staffing or public expenditure implications.
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