Tougher rules for Hong Kong property developers

The government has launched a two-month public consultation on legislation to regulate the sale of new properties. The government wants to crack down on the misleading overstatement of floor space for new buildings and off-plan projects by unscrupulous developers. Homebuyers have complained that some developers often include public spaces such as lift lobbies, clubhouses and electricity plants in the gross floor area of a private flat. Under the proposed rules, developers will have to produce a sales brochure on each property available at least seven days before sales begin. The brochure will have to provide the net saleable area of the property and will not be allowed to contain artist’s impressions of the development. The saleable area is the floor area of the residential property itself, including any balcony or utility platform, but excluding bay windows and public parts of a development. The maximum penalty for misleading the public is expected to be a fine of HK$5 million and seven years in prison. Minor breaches may be punished by a fine of around HK$100,000. The legislation is expected to be passed in the first quarter of 2012.

Mediation Bill tabled before LegCo

The Mediation Bill, which seeks to establish a proper legislative framework for conducting mediation without hampering the flexibility of the mediation process and to assist in the promotion of the more extensive and effective use of mediation in Hong Kong, has been tabled before the Legislative Council. The bill provides legal certainty regarding confidentiality of mediation communications and admissibility of mediation communications in evidence. In the absence of the exceptional circumstances set out in the bill, a person who seeks to disclose mediation communications can do so only for certain
justifiable purposes with the leave of a specific court or tribunal. A person must also apply for leave of the court or tribunal in order to adduce mediation communications in any proceedings. The bill sets out matters the court or tribunal must take into account in granting leave for a mediation communication to be disclosed or admitted in evidence. The bill also seeks to standardise the terminology and Chinese renditions for ‘mediation’ and ‘conciliation’ used in existing ordinances.

e-Channel immigration service to expand

The Immigration Department will extend its e-Channel service at control points to enrolled mainland frequent visitors in phases from January. Mainland adults are eligible for enrolment free if they hold a valid Exit-Entry Permit and one-year multiple exit endorsement for visiting relatives, or individual and business visits. They must have visited Hong Kong three times or more in the last 12 months and have no criminal record. The e-Channel service for mainland visitors will become available at the Lok Ma Chau Spur Line and Lo Wu control points. The service will gradually be extended to the Shenzhen Bay, China Ferry Terminal, Macau Ferry Terminal and Airport control points by mid-2012. Enrolment and the service will also be available at Man Kam To and Lok Ma Chau control points after improvement works are completed.

High Court awards $1.2 billion in divorce property settlement

An heir to a property fortune has been ordered to pay his ex-wife more than HK$1.22 billion (US$157 million) in one of Hong Kong’s biggest divorce settlements. High Court Justice John Saunders ruled that Samathur Li Kin-kan, the son of billionaire Samuel Tak Lee, pay Florence Tsang Chiu-wing HK$1.22 billion – which represents 20% of the couple’s assets when applying the ‘sharing principle’. The settlement is roughly more than half the amount demanded by Tsang. Saunders J said the couple lived a ‘lifestyle best described as just below that of a US-dollar billionaire’, and ruled that Tsang, a former solicitor, should be kept in the comfort to which she had become accustomed. The settlement includes a HK$250 million Hong Kong property, a London property valued at HK$30.53 million, HK$2.5 million to buy two cars, HK$5 million for a yacht and HK$4.6 million for club memberships in Hong Kong and the UK. Tsang was also given a Duxbury award of HK$215 million as a fixed sum for life.