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A Complete Guide for Hong Kong Building DMC
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What is a building DMC in Hong Kong? What is the purpose of a DMC? What’s building rules for pets, common areas, rental properties? How can I get a DMC? LetsGetHome understands the worries of property owners! This article clearly presents 11 key aspects of the Deed of Mutual Covenant (DMC), including examples of violations.
What is a building DMC in Hong Kong?
The DMC extends for The Deed of Mutual Covenant, colloquially known as the “Occupation Permit”, is a legal document encompassing property rights, detailing the rights and obligations among owners, residents, and property management.
When buyers sign the property deed, it specifies that the new owners must adhere to the DMC's stipulations. This means once the developer and the first owner sign the DMC, all subsequent owners must automatically accept these terms when purchasing the unit. Hence, regardless of property transfers, subsequent owners remain bound by the DMC.
What is the purpose of a DMC?
The Deed of Mutual Covenant (DMC) is a legal document commonly used in Hong Kong's property management. It plays a crucial role in multi-unit or multi-storey buildings, as well as the day-to-day operations of the property. Here are its key characteristics and functions:
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Owner Rights and Obligations
Ownership and usage rights of the property.
Sharing of common spaces and facilities.
Voting rights at owner meetings.
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Property Management Rules
Maintenance, cleaning, and security of the building.
Behavioral guidelines in common areas, like noise control and waste management.
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Management Fees and Expenses
Standards and methods for collecting management fees and use of the building's maintenance fund.
Dispute resolution regarding fee allocation and arrears.
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Subletting Restrictions
Potential restrictions on subletting units to maintain common area rights.
Enforcement may require evidence, such as subletting agreements.
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Use of Common Spaces
Defined usage rules for common areas (e.g., corridors, gardens, gyms).
May include regulations on usage times and maintenance responsibilities.
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Building Regulations
Restrictions on altering the building's exterior or structure, like wall colors or window designs.
Any modifications require management's approval; unauthorized changes may be subject to removal or restoration.
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Property Maintenance and Improvements
Responsibility distribution for maintenance and improvement works.
Dispute resolution for cost allocation and execution of works.
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Pet Policy
Stipulations on pet ownership, including size and breed restrictions.
If not explicitly prohibited, residents are generally allowed to keep pets.
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Violation Handling
Property management and owner corporations can warn or sue owners for violations.
Consequences of violations, such as fines and restrictions.
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Role of Owner Meetings and Management
Structure and operation of owner meetings.
Definitions of responsibilities and authority of property management.
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Dispute Resolution Mechanisms
Guidelines and procedures for resolving disputes among owners or with management.
May include mediation and arbitration processes.
DMC Violation Examples
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Unpermitted Renovations
An owner undertook major renovations without permission from management or the owner's corporation, violating renovation rules and potentially risking the building's structure and other residents. The owner was required to restore the original state and could face fines.
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Long-term Non-payment of Management Fees
An owner who consistently delayed management fee payments, breaching payment regulations. Management sued for the payment of overdue fees, potentially resulting in restricted access to certain common facilities.
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Unpermitted Pet Ownership
A tenant kept a large dog in violation of the pet policy. This led to warnings and requests to remove the pet, with potential fines.
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Unpermitted Subletting
Despite a collective decision against subletting at an owner meeting, an owner still sublet their unit to multiple tenants. Other owners might complain and take legal action to enforce the covenant.
Responsibilities of Owners Under the Deed of Mutual Covenant
Owners are typically obliged to ensure the operation and maintenance of the building, including:
- Paying management fees.
- Maintaining the unit in good condition.
- Adhering to building rules, such as pet policies, renovation regulations, and use of common facilities.
- Promptly reporting safety or maintenance issues.
- Respecting neighborly rights, like noise reduction and pet policies.
- Participating in maintenance and improvement plans, sharing related costs as stipulated.
Online Search for the Copy of DMC
Select “Search Land Registration” on the IRIS system of the Land Registry (requires a fee of HK$10).
Mark down the Registration Number on the “Incumbrances” option.
Select “Order Land Documents” on the IRIS system.
Choose the “Registration Summary” and enter the “Registration Number” to Download (a fee of HK$100).
What can I do if I don’t have the building deed?
If a property owner lost the deed, the owner can obtain a copy through the IRIS system. An officially certified copy can be obtained from the Land Registry.
If the DMC isn't found on the IRIS system, it might be unregistered; owners can then request a copy from the Buildings Department.
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