In a new or modified lease (including Conditions of Sale, Conditions of Grant, Conditions of Exchange, etc.), a building covenant ("BC") may be imposed requiring the lot owner to complete the development of a lot in accordance with the conditions of the lease within the period specified in the BC ("BC period"). To fulfil the BC, the lot owner is required to complete the development under lease and obtain an Occupation Permit from the Building Authority within the BC period. Should the lot owner anticipate that the development of the lot cannot be completed before the expiry of the BC period, an application for extension of the BC period with justifications may be submitted to the Lands Department for consideration.
The following Lands Department Land Administration Office (LAO) Practice Note may be referred to for details:
- LAO Practice Note No. 2/2021 - Streamlined Application Process for Extension of the Period in the Building Covenant for Over One Year and Other Matters Related to Building Covenants