HKLII

Hong Kong Law Reform Commission

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Preface


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Terms of reference

1. In March 1996, the then Attorney General and the then Chief Justice made the following reference to the Law Reform Commission:

"Should the present laws governing the protection of prospective purchasers and purchasers of completed residential property in Hong Kong in relation to any pre-contractual matters and sales descriptions be changed and, if so, in what way?"

2. The reference refers to "pre-contractual" matters. It covers any sales matters before the time of contract, that is to say, the signing of the formal sale and purchase agreement.


The Sub-committee


Part I - Local uncompleted residential properties


3. The Law Reform Commission's Sub-committee on Descriptions of Flats on Sale ("the Sub-committee") was first appointed in November 1992 to consider the sales descriptions of uncompleted residential properties. In April 1994, the Sub-committee released a consultation paper to seek public comments on their interim recommendations. The Sub-committee's proposals were largely adopted by the Commission and formed the basis of the Commission report published in April 1995 on the sales descriptions of local uncompleted residential properties entitled, Report on Description of Flats on Sale, ("the First Report"). The Government published the Sales Descriptions of Uncompleted Residential Properties Bill as a White Bill on 7 April 2000 to largely implement the proposals in the Commission report.


Part II - Overseas uncompleted residential properties


4. In April 1995, the Sub-committee commenced consideration of the second part of their study, namely, the sales descriptions of overseas uncompleted residential properties put up for sale or advertised in Hong Kong. They released a consultation paper in September 1996 to solicit public views on their interim recommendations. The Sub-committee's proposals were again largely adopted by the Commission and formed the basis of the Commission report published in September 1997 entitled, Report on Sales Descriptions of Overseas Uncompleted Residential Properties ("the Second Report").

Part III - Local completed residential properties


5. This is the third part of the study by the Sub-committee. It covers the sales descriptions and other pre-contractual matters of completed residential properties in Hong Kong.


Sub-committee membership


6. The membership of the Sub-committee (in respect of the third part of its reference) was:

Mr Kennedy WONG Ying-ho
(Chairman)
Managing Partner
Philip K H Wong, Kennedy Y H
Wong & Co
Solicitor


Mr Tom Berry, JP
(Represented by Mr John Edge, JP, Acting Deputy Director (Legal) of Lands Department from 21 January 1999 to 26 August 1999)
Deputy Director (Legal)
Lands Department


Ms Audrey EU, SC
(up to 22 April 1998)
Senior Counsel


Mr Kenneth KWOK Wing-hon
(from 16 July 1999)
Senior Development Manger
Swire Properties Ltd


Mr Andrew LEE King-fun
Principal Partner
Andrew LEE King-fun and
Associates
Architect


Mr LIU Sing-cheong
Managing Director
Hang Cheong Surveyors Ltd
Surveyor


Ms Rebecca PUN Ting-ting
(from 28 July 1999 to 31 March 2000)
Principal Assistant Secretary
Housing Bureau
Government Secretariat


Mr Malcolm Merry
(from 30 June 1998)
Counsel


Ms June Teng
(from 5 October 1998 to 3 June 1999)
General Secretary
Real Estate Developers
Association of Hong Kong


Ms Eva TO Hau-yin
(up to 28 July 1999)
Principal Assistant Secretary
Housing Bureau
Government Secretariat


Mr WAI Siu-yu
(up to 31 July 1998)
General Secretary
Real Estate Developers
Association of Hong Kong


Ms Lorna WONG Lung-shi
(from 31 March 2000)
Principal Assistant Secretary
Housing Bureau
Government Secretariat


Mr Martin WONG Kwai-poon
Chief Complaints & Advice Officer
Consumer Council


Mr Marco WU Moon-hoi, JP
Deputy Director/Management
Housing Department

7. Mr Thomas LEUNG Moon-keung, Senior Government Counsel, acted as the Secretary to the Sub-committee.


Meetings


8. The Sub-committee commenced the study of the third part of its reference on 26 February 1998 and between then and 27 July 2000, held a total of 48 meetings.


Consultative document


9. This consultation paper sets out the Sub-committee's interim recommendations on ways to improve the sales descriptions and other pre-contractual matters of completed residential properties in Hong Kong.

10. The purpose of circulating this consultation paper is to invite the public and all interested parties to express their views on the matters raised and the interim recommendations made. The Sub-committee will present its final recommendations to the Law Reform Commission after taking into account the responses collected during consultation.