Part 5: Part 5: Building-related Knowledge, Property Classification and Property Management
Estate Agency Qualifying Examination · Part 5: Part 5: Building-related Knowledge, Property Classification and Property Management
Which of the following information can be obtained from a building's Occupation Permit (commonly known as the 'OP'?): (i) The total gross floor area of the building (ii) The approved uses of the individual units within the building (iii) The term of the relevant government land lease (iv) The saleable area of each unit in the building
Why: An Occupation Permit is issued by the Building Authority pursuant to the Buildings Ordinance (Cap. 123). The Occupation Permit typically records the approved use of each unit, the year of completion of the building, and the total number of units on each floor. The Occupation Permit does not contain any floor area information (whether gross floor area or saleable area), nor does it relate to the term of any government land lease.
A prospective purchaser wishes to buy a flat and asks his estate agent to ascertain the permitted use of a vacant site adjoining the flat. From which of the following documents can the estate agent obtain the relevant information? (i) The Outline Zoning Plan covering the area of the vacant site (ii) The Land Registry search records of the flat the prospective purchaser intends to buy (iii) The government lease of the vacant site
Why: The permitted use of land may be ascertained from the Outline Zoning Plan prepared by the Town Planning Board and from the government lease or conditions of grant. The Land Registry search records of the flat intended to be purchased do not contain information relating to the permitted use of adjoining lots.
Generally speaking, which of the following items can be found in a Deed of Mutual Covenant (DMC) of a building? (i) The name of the first purchaser of a unit in the building (ii) The allocation of undivided shares corresponding to each part of the building (iii) The areas defined as common parts of the building (iv) The proportionate share of management fees payable by the owner of each unit
Why: A Deed of Mutual Covenant is entered into between the developer and the first purchaser, and is equally binding on all subsequent assignees. The content of a DMC typically covers: the name of the first purchaser, the allocation of undivided shares to each part of the building, the definition of common parts, and the proportionate share of management fees. Management fees are generally apportioned among unit owners in proportion to their respective undivided shares.
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