Section 12

provisions binding on the licensed housing developer that the land sold to the purchaser together with the housing accommodation to be erected thereon is free from —

any agricultural or industrial condition expressed or implied; and

provisions binding on the licensed housing developer that immediately after a contract of sale has been signed the licensed housing developer shall not subject the land sold to the purchaser to any encumbrance without the prior approval of the

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purchaser;

provisions binding on the licensed housing developer to ensure that the land sold to the purchaser shall be free from any encumbrance immediately prior to the handing over of vacant possession of the housing accommodation to the purchaser;

provisions specifying a statement relating to the purchase price of the land sold to the purchaser together with the housing accommodation to be erected thereon;

provisions setting out the scheme of payments of the purchase price by instalments as prescribed in Schedule C to these Rules;

provisions describing the layout plan particularly specifying the measurements, boundaries and areas of the land sold to the purchaser upon which the housing accommodation is to be erected and also specifying the position of such land in relation to the housing development area;

provisions stating that in the event of the measurements, boundaries and areas of the land sold to the purchaser as described in the layout plan in the contract of sale being different from the measurements, boundaries and areas of such land as shown in the subsequent issue of the new document of title to such land the purchase price shall be adjusted equitably. The price of such land for purpose of adjustment shall be calculated as the same price per square foot as was used to calculate the purchase price stated in the contract of sale and any payment resulting from the adjustment and requiring to be paid by the party concerned shall be so paid within seven days of the issue of the new document of title;

provisions binding on the licensed housing developer that the layout plan of the housing development area including the land upon which the housing accommodation is to be erected for the purchaser has been duly approved by the Appropriate

Authority and no alteration to the approved layout plan shall be made or carried out except as may be required by the Appropriate Authority or as may be certified to be expedient or necessary by the architect of the licensed housing developer. Such alteration shall not annul the contract of sale or be subject of any claim for damages or compensation by or against any party to the contract of sale;

provisions binding on the licensed housing developer that the housing accommodation to be erected for the purchaser shall be constructed in good and workmanlike manner in accordance with the specifications and plans described in the contract of sale which specifications and plans have been approved by the

Appropriate Authority and agreed to by and between the purchaser and the licensed housing developer. No charges thereto or deviation therefrom shall be made without the consent of the purchaser except such as may be required by the Appropriate

Authority or certified by the architect of the licensed housing developer to be expedient or necessary. The cost of such changes or deviations shall be borne by the licensed housing developer and no claim whatsoever may be made against the purchaser;

provisions binding on the licensed housing developer that he shall in relation to the

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housing accommodation to be erected for the purchaser conform with all the written laws for the time being in force affecting such housing accommodation and shall keep the purchaser indemnified against all fines and penalties or losses incurred by reason of any breach of the provision of any written law;

provisions binding on the licensed housing developer that he shall at his own costs and expenses construct or cause to be constructed in accordance with the requirements and standards of the Appropriate Authority or other public authorities the roads, driveways, drains, culverts, water mains and septic tanks or sewerage mains or sewerage plants serving the housing accommodation erected for the purchaser;

provisions binding on the licensed housing developer that he shall at his own costs and expenses cause the connection of electricity, water and sewerage mains of the

Appropriate Authority or public authority with the internal electricity, water and sewerage mains of the housing accommodation erected for the purchaser;

provisions binding on the licensed housing developer that he shall at his own costs and expenses have applied and shall obtain the approval for the subdivision of the land sold to the purchaser as provided for under the Ordinance;

provisions binding on the licensed housing developer that he shall do all acts and things necessary to procure the issue of the relevant Certificate of Fitness for

Occupation from the Appropriate Authority in respect of the housing accommodation erected for the purchaser and shall at his own costs and expenses comply with all the requirements of the Appropriate Authority in the procurement of such Certificate and shall undertake to produce such Certificate to the purchaser when issued;

provisions specifying the date of delivery of the vacant possession of the housing accommodation to the purchaser which date shall not be later than 24 months after the date of signing of the contract of sale;

provisions binding on the licensed housing developer that he shall upon the signing of the contract of sale forthwith use his best endeavour and take all necessary steps to obtain a separate issue of the document of title to the land upon which the housing accommodation is erected for the purchaser and shall upon the issue of the document of title and provided that the purchaser has paid all moneys due under the contract of sale and has performed and observed the terms and conditions of the contract of sale, forthwith execute a valid and registrable transfer of such land together with the housing accommodation to the purchaser, his heir or nominee or lawful assignee as the case may be;

provisions binding on the licensed housing developer that he shall undertake to remedy any defect, shrinkage or other fault in the housing accommodation erected for the purchaser which defect, shrinkage or other fault may become apparent within a period of six calendar months after the date of delivery of vacant possession to the purchaser by the licensed housing developer;

provisions binding on the licensed housing developer that he shall indemnify the

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purchaser for any delay in the delivery of the vacant possession of the housing accommodation. The amount of indemnity shall be calculated from day to day at the rate of not less than eight per centum per annum of the purchase price commencing immediately after the date of delivery of vacant possession as specified in the contract of sale;

provisions stating the party responsible for the payment of all outgoings including quit rents and assessments and the manner of making such payments;

provisions specifying the penalties to be levied against the purchaser in the event of his committing any breach of the terms and conditions of the contract of sale and the manner of levying such penalties;

provisions binding on the licensed housing developer that the purchaser of the land and his heir, personal representative, assignee and his or their servants, agents, licensees and invitees shall have free rights and liberties to use such land and to use in common with all other persons having similar rights and liberties, all roads serving such land or other lands in the housing development and to make all necessary connections and thereafter to use in a proper manner the drains, pipes, cables and wire laid or constructed by the licensed housing developer under or over such roads for the purpose of the supply of water, electricity and telephone services to and for drainage of water from the land sold to the purchaser. Such rights and liberties shall continue to apply notwithstanding the completion of the contract of sale;

provisions binding that a licensed housing developer shall not charge extra amount to the purchase resultant on the increase cost of materials;

provisions specifying that in the event of a licensed housing developer fails to remedy any defect, shrinkage or other fault in the housing accommodation created for the purchaser within the six months period, the Controller reserved the right to utilise the deposit money to make good the reported defect on the housing accommodation.

Notwithstanding the provisions of paragraph (1) of this rule, where the Controller is satisfied that owing to special circumstances the compliance with any provisions of this rule is impracticable or unnecessary he may by a certificate in writing waive or modify such provisions in respect of any contract of sale.

The provisions of this rule shall not apply to an agreement for sale in respect of subdivided buildings.

Previous contract of sale.