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Lands Department Consent Scheme, Approval of Deeds of Mutual Covenant and Management Agreement

Lands Department Consent Scheme

In most new grants of land, Government restricts the sale of units before construction has been completed. Through an administrative procedure, known as the Lands Department Consent Scheme, Legal Advisory and Conveyancing Office ("LACO") may issue consent for the sale of uncompleted units. The consent will be given when the developer has shown that he has the technical and financial resources to complete development and has met other requirements. The consent issued by LACO is subject to various conditions, which aim to enhance consumer protection. However, to protect their own interest, purchasers are advised to fully familiarize themselves with all aspects of the development and the relevant legal documents before making their decision.

For a development where an occupation permit has been issued but for some technical reasons (e.g. the presence of certain outstanding works) a certificate of compliance cannot be obtained, the developer may apply to LACO for consent to enter into assignments. An application for consent to enter into assignments will be approved by LACO upon compliance with the conditions that may be imposed.

Please click here for the Monthly Reports and Quarterly Reports on Consent to Sell and Consent to Assign and the related press releases.

For LACO Circular Memorandum relating to the Lands Department Consent Scheme, please click here.

Approval of Deed of Mutual Covenant and Management Agreement

A Deed of Mutual Covenant and Management Agreement ("DMC") sets out and regulates the rights and obligations between co-owners and between co-owners and the manager. It also provides for the management of the development. Most land grant documents require approval of the DMC before the sale of units. In approving the DMC, LACO will ensure that the DMC does not contravene the Building Management Ordinance (Cap. 344) and, as far as applicable, complies with the DMC Guidelines published in LACO Circular Memorandum No. 79 and any updates.

For LACO Circular Memorandum relating to Approval of DMC, please click here.

For information on Consent to Sell, Consent to Assign and Approval of DMC issued by LACO, please click here.