deposits of $1,000 each a number of documents entitled 'Confirmation of Instructions.' These documents upon investigation proved to be irrevo- cable options to purchase flats in the still uncompleted building. Taking the view that the issue of these documents constituted a breach of the Conditions of Sale, the Crown re-entered upon the lot.
45. The owner at first sought to maintain that there had been no breach, and petitioned the Supreme Court for relief. However, the owner subsequently admitted that there had been a breach, and after undertaking to grant an option to all purchasers who had entered into unauthorized agreements either to cancel the agreement and receive back all sums already paid, or to enter into a new agreement at the same price in a form to be approved by the Registrar General, it petitioned the Governor in Council for cancellation of the re-entry. Cancellation was subsequently approved, but subject to the payment of a substantial penalty and the execution of an undertaking to fulfil the normal standard conditions laid down by the Registrar General on granting permission for the sale of flats.
46. As a result of this case, the Land Officer issued a Circular Memo- randum to all solicitors inviting their attention to the facts of this case so that in the event of any of their developer clients seeking to proceed in a similar way they could warn them of the consequences that would ensue. The Circular Memorandum emphasized that Government attached the greatest importance to absolute compliance with provisions inserted in Conditions of Sale and Exclusion Orders for the protection of pur- chasers of flats, and would take the most serious view in the event of any future breach of these provisions being discovered.
Modification of Lease Covenants
47. Before the war many lots were sold with height and other restric- tions which are, under the changed conditions of modern Hong Kong, no longer considered necessary. There are therefore many cases in which Government is prepared to grant modifications of the original restric- tions on terms usually including the payment of an additional premium. During the year 81 applications for modifications were received, five fewer than in 1963-64. Most of the modifications were wanted to enable the lessee to build blocks of flats. Any questions arising out of the applica- tions are normally discussed and decided at the meetings mentioned in paragraph 41.
48. The number of New Territories modification cases on which the Registrar General's New Territories Section gave advice to the
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