We all know that the purchase and sales of property is a complicated process. Researching property information, applying for mortgage and signing legal documents are some of the woes that first-home buyers get frustrated at, not to mention specialized property vocabulary. Don’t panic if you’re in over your head – let’s start with learning the three words below.
Any property that is constructed under regulations has to be reviewed by the buildings department to ensure that the structure complies with safety standards. Once a property is deemed safe for moving in, the department will issue a proof of document, which is called an occupation permit. The permit also includes information including the age and permitted use of properties, as well as the number of units on each floor. Interested parties can review an occupation permit on the Land Registry website.
Certificate of Compliance
While the government allocates land sites, it often comes with additional prescribed terms, such as constructing roads, footbridges and parks in the vicinity. Upon complete construction, the government will issue a certificate of compliance, and the property acquires its legal estate. Generally speaking, a property cannot be sold or moved into until the certificate is issued.
Deed of Mutual Covenant
The Deed of Mutual Covenant of a building is set out between the developer, property manager and property owners of the building. It provides information on the particular terms and condition of the building and the way it is managed, such the interest and liability of the property owner, use of common area, restriction, etc. The Deed also reveals how the management and maintenance fees are calculated. The calculations are based on how much space an individual unit occupies in the building.