8. The principal Ordinance is hereby amended by inserting immediately after section 36 thereof the following new Part: —“PART IIIA SALE OF FLATS, HOUSES OR OTHER LIVING ACCOMMODATION |
Power to sell and restrictions as to registration |
36A.—(1) The Board may, with the approval of the Minister, sell any developed land or part thereof.(2) The Registrar of Deeds and the Registrar of Titles shall not, without the written consent of the Board, register any assurance relating to any developed land or part thereof which has been sold under the provisions of this Part of this Ordinance. |
(3) The certificate of the Board that any developed land or part thereof has been sold under the provisions of this Part of this Ordinance shall be conclusive evidence of such fact. |
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Restrictions as to purchase |
36B.—(1) No person shall be entitled to purchase more than one flat, house or other living accommodation sold under the provisions of this Part of this Ordinance.(2) Where a person purchases a flat, house or other living accommodation in contravention of the provisions of subsection (1) of this section, such person shall not present for registration under the provisions of the Registration of Deeds Ordinance (Cap. 255) or the Land Titles Ordinance, 1956 (Ord. 21 of 1956), the assurance of such flat, house or other living accommodation. The Board shall serve a written notice, upon the purchaser of such flat, house or other living accommodation of its intention to lodge with the Registrar of Deeds or the Registrar of Titles an instrument under the provisions of subsection (3) of this section. Such purchaser may, within fourteen days of the service of such notice, appeal to the Minister whose decision shall be final and shall not be called in question in any court. |
(3) The Board may, in any case, where a person has purchased a flat, house or other living accommodation in contravention of the provisions of subsection (1) of this section, and whose appeal to the Minister has been dismissed, lodge an instrument with the Registrar of Deeds or the Registrar of Titles, as the case may be, for the vesting in the Board of the title to or the estate or interest in such flat, house or other living accommodation. |
(4) The Registrar of Deeds or the Registrar of Titles shall —(a) | not be concerned to inquire into the regularity or validity of any instrument, lodged under the provisions of subsection (3) of this section; and | (b) | register such instrument and upon such registration the title to or the estate or interest in such flat, house or other living accommodation shall vest in the Board free from all incumbrances without further assurance, for such title, estate or interest as the Board would have had on the date of the registration of such instrument, if there had been no sale of such flat, house or other living accommodation. |
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(5) Upon registration of such an instrument —(a) | in the case of a flat, house or other living accommodation registered under the provisions of the Registration of Deeds Ordinance (Cap. 255), the Registrar of Deeds shall make an entry in the books of the Registry that the flat has vested in the Board, in accordance with the provisions of subsection (4) of this section, free from all incumbrances, and upon such entry being made the flat shall vest in the Board, subject to the provisions of subsection (4) of this section, free from all incumbrances; or | (b) | in the case of a flat, house or other living accommodation registered under the provisions of the Land Titles Ordinance, 1956 (Ord. 21 of 1956), the land shall vest in the Board, in accordance with the provisions of subsection (4) of this section, free from all incumbrances, and the Registrar of Titles shall cancel the registration of any mortgage, charge or lease thereby over-reached and shall, if so requested, cancel the folium of the land-register (and the duplicate folium thereof if produced for that purpose) and shall create a new folium for the title or estate or interest thereby acquired. |
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(6) Any person, who acts in contravention of the provisions of subsection (1) or (2) of this section, shall be guilty of an offence under this Ordinance, and shall be liable on conviction to imprisonment for a term not exceeding twelve months or to a fine not exceeding two thousand dollars or to both such imprisonment and fine. |
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36C. For the purposes of the registration of any assurance pertaining to the sale by the Board of a flat, the mortgage of such flat in favour of the Board or the reconveyance or discharge of such mortgage —(a) | in the case of land registered under the provisions of the Registration of Deeds Ordinance (Cap. 255), the provisions of section 12 of the said Ordinance shall not apply; and | (b) | in the case of land registered under the provisions of the Land Titles Ordinance, 1956 (Ord. 21 of 1956), where a solicitor is not employed by the party acquiring title under any instrument relating to the transactions referred to in this section, a certificate of an officer authorised in writing in that behalf by the Board, shall be sufficient for the purposes of subsection (3) of section 44 of the Land Titles Ordinance, 1956. |
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Implied conditions as to flat, house or other living accommodation |
36D.—(1) No flat, house or other living accommodation which has been sold by the Board under the provisions of this Part of this Ordinance, shall be sold, leased, mortgaged or disposed of without the prior written consent of the Board.(2) Every assignment, mortgage, transfer, charge or lease of any such flat, house or other living accommodation which is executed by or on behalf of the owner thereof without the prior written consent of the Board shall be void and no such assignment, mortgage, lease, transfer or charge shall be capable of being registered under the provisions of the Registration of Deeds Ordinance (Cap. 255) or the Land Titles Ordinance, 1956 (Ord. 21 of 1956). |
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Implied conditions as to flats |
36E.—(1) No lien by deposit of the title deeds of any flat, which has been sold by the Board under the provisions of this Part of this Ordinance, as security for a debt shall be capable of being created in favour of any person and no caveat in support of any such lien by deposit shall be capable of being registered under the provisions of the Registration of Deeds Ordinance or the Land Titles Ordinance, 1956.(2) No such flat shall vest in the Official Assignee on the bankruptcy of the owner thereof. |
(3) No such flat shall be attached in execution of a decree of any court. |
(4) Every trust or alleged trust, whether such trust be express, implied or constructive, which purports to be created in respect of any such flat by the owner thereof shall be null and void and shall be incapable of being enforced by any court. |
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Transfer of a flat, house or other living accommodation on the death of the owner |
36F.—(1) The transmission of a flat, house or other living accommodation, which has been sold under the provisions of this Part of this Ordinance, on the death of the owner, whether testate or intestate, shall not be registered, under the provisions of the Registration of Deeds Ordinance or the Land Titles Ordinance, 1956, without the written consent of the Board:Provided that, where the Board refuses to give its consent, the Board shall make a written offer to purchase such flat, house or other living accommodation at a price to be determined by the Board. |
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(2) Any person who is dissatisfied with the price, determined by the Board, under the provisions of subsection (1) of this section, may within fourteen days of the date of the written offer appeal to the Minister whose decision shall be final. |
(3) The Board shall —(a) | where there is an appeal under the provisions of subsection (2) of this section, within four weeks of the determination of the appeal by the Minister; or | (b) | in any other case, within six weeks of the written offer, |
purchase the flat, house or other living accommodation at the price determined by the Board or at the price determined by the Minister on appeal, as the case may be. |
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Establishment of management corporation |
36G.—(1) The owners of flats of the Board in any building shall, as soon as possible after they are directed by the Board in writing, establish a body corporate under the name of “The Management Corporation for flat numbers in Lot Number ...... in Town Sub-Division (or Mukim) ...... of the building in the ...... of the Housing and Development Board.”.(2) The Board shall not, without the prior approval in writing of the Minister and without consulting all the owners of the flats in any building, make any direction, under the provisions of subsection (1) of this section, upon owners of the flats of the Board in any building. |
(3) Where a direction of the Board under the provisions of subsection (1) of this section is not carried out, the Board may, with the approval of the Minister, by notification in the Gazette, authorise a company, incorporated under the provisions of the Companies Ordinance (Cap. 174) or any written law repealing and re-enacting the provisions thereof, to exercise the functions, duties and powers of a management corporation. |
(4) The Board may, in its absolute discretion, with the approval of the Minister, revoke any authorisation granted to a company, under the provisions of subsection (3) of this section, without assigning any reason therefor, by a notification in the Gazette. |
(5) A management corporation shall be constituted by an order made by the Minister, which shall be published in the Gazette. |
(6) Upon the constitution of a management corporation and so long as one exists in relation to a building every owner of a flat in such building shall be —(a) | a member of the management corporation; and | (b) | entitled to such voting rights as may be prescribed. |
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(7) A management corporation, constituted under the provisions of subsection (5) of this section, shall have perpetual succession and may sue and be sued in its name and do all other matters and things incidental or appertaining to a body corporate and not inconsistent with the provisions of this Ordinance. |
(8) A management corporation shall establish and maintain a fund for administrative purposes sufficient in the opinion of the corporation for the control, management and administration of the common property, for the payment of any rent, rates and premiums of insurance and the discharge of any other obligations of the corporation. |
(9) For the purposes of establishing and maintaining a fund in accordance with the provisions of subsection (8) of this section the management corporation may —(a) | determine from time to time the amounts to be raised for the purposes referred to in subsection (8) of this section; | (b) | raise amounts so determined by levying contributions on the owners in such proportions as may be prescribed; | (c) | recover from any owner by an action in any court of competent jurisdiction any sum of money expended by the management corporation for rents, rates, premiums, maintenance, conservancy or for repairs to or done by it at its direction to his flat. |
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(10) Subject to the provisions of subsection (12) of this section, any contribution levied under the provisions of subsection (9) of this section shall be due and be payable —(a) | on the passing of a resolution to that effect and in accordance with the terms of that resolution; or | (b) | if the Board or a company, as the case may be, is performing the functions of a management corporation and has been vested with its powers, under the provisions of section 36H of this Ordinance, on the service of a written notice and in accordance with the terms of that notice, |
and may be recovered by the management corporation or the company, as the case may be, in an action in any court of competent jurisdiction from the owner of the flat at the time when such resolution or notice, as the case may be, was passed or served and from the owner of the flat at the time when such action is instituted, both jointly and severally. |
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(11) A certificate of the Board shall be conclusive evidence of the amount that may be due to the Board under the provisions of subsection (10) of this section. |
(12) A management corporation shall on the application of any owner of a flat or any person authorised in writing by him certify —(a) | the amount determined as the contribution of the owner; | (b) | the manner in which such contribution is payable; | (c) | the extent to which such contribution has been paid by the owner; and | (d) | the amount of any rates paid by the management corporation and not recovered by it, |
and in favour of any person dealing with that owner such certificate shall be conclusive evidence of the matters certified therein. |
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(13) A management corporation, constituted under the provisions of subsection (5) of this section shall not be wound up, except by an order made by the Minister cancelling the notification which constituted such management corporation. Such order shall be published in the Gazette and shall provide for the winding up of the management corporation and for its dissolution. |
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Board or company may exercise the powers of management corporation |
36H. The functions and duties of a management corporation may be performed and its powers shall be vested and may be exercised by —(a) | the Board —(i) | where a management corporation has not been constituted under the provisions of subsection (5) of section 36G of this Ordinance; or | (ii) | where a management corporation, which has been constituted under the provisions of subsection (5) of section 36G of this Ordinance, has been wound up by an order under the provisions of subsection (13) of the said section; or |
| (b) | a company authorised by the Board under the provisions of subsection (3) of section 36G of this Ordinance. |
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Determination of the lease |
36I.—(1) The Board may, where a flat has been sold by the Board under the provisions of this Ordinance —(a) | if the rent reserved by the lease or any part thereof shall be unpaid for three calendar months after becoming payable and the Board shall have sent a demand in writing by registered post addressed to the purchaser at the flat (whether such demand shall have been received by the owner or not); | (b) | if any condition on the part of the owner shall not be performed or observed within two weeks after notice in writing shall have been sent by the Board to the purchaser addressed to the purchaser at the flat drawing the attention of the owner to the non-performance or non-observance of the condition (whether such demand shall have been received by the owner or not); | (c) | if the owner has submitted a false statement in his application form for the purchase of the flat; | (d) | if the owner has, in the opinion of the Board, committed a breach of any of the rules made under the provisions of paragraph (f) of subsection (1) of section 36J of this Ordinance; | (e) | if the owner has in the opinion of the Board, used the flat otherwise than for the purpose of his residence, |
in every such case re-enter upon the flat or part thereof in the name of the whole and thereupon the lease shall absolutely determine, but such determination shall be without prejudice to any right of action or remedy of the Board in respect of any such breach or any other breach of the conditions contained in the lease. |
(2) Upon the determination of the lease, under the provisions of subsection (1) of this section, the title to such flat and the estate or interest in such flat shall vest in the Board free from all incumbrances without further assurance, for such title, estate or interest as the Board would have had on the date of such determination, if there had been no sale of such flat. |
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36J.—(1) The Minister may prescribe rules for giving effect to the provisions of this Part of this Ordinance and, without prejudice to the generality of the foregoing, for or in respect of all or any of the following matters: —(a) | the terms and conditions for the sale of any flat, house or other living accommodation under the provisions of this Part of this Ordinance; | (b) | the persons to whom it may be sold, including the qualifications as to income, number in the family and citizenship of such persons; | (c) | a scheme of savings, by prospective purchasers of flats, with the Board for the first minimum payment on a flat; | (d) | the minimum first payment on the purchase of a flat and the maximum period that may be allowed for the payment of the balance of the purchase price, together with the prescribed interest; | (e) | the functions, duties and powers of a management corporation; and | (f) | regulating the use of flats of the Board, which have been sold under the provisions of this Part of this Ordinance, and the common property. |
(2) All such rules shall be published in the Gazette and shall be presented to the Legislative Assembly as soon as may be after publication.”. |
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