(1) This notice may be cited as the Securities Act (Residential Property Developments) Exemption Notice 1999.

(2) This notice comes into force on the day after the date of its notification in the Gazette.

(1) In this notice, unless the context otherwise requires,—

(2) Any term or expression that is not defined in this notice, but that is defined in the Act or the Regulations, has the meaning given to it by the Act or the Regulations.

Every developer and society, and every person acting on behalf of either a developer or a society, are exempted from sections 33, 37, 37A, 38A, 53E(2), 54, and 54B(3) of the Act in respect of specified securities of which that developer or society is an issuer.

The exemptions granted by clause 3 are subject to the conditions that—

• (a) Subscribers for specified securities have, before subscription, been supplied by the developer with a copy of each of the following documents:

  • (i) The rules (including a copy of any agreement for the management of the society's affairs):

  • (ii) A specimen of any deed or agreement providing for the transfer of communal facilities from the developer to the society:

  • (iii) A specimen of the sale agreement:

  • (iv) A specimen of any lease agreement for communal facilities; and

• (b) The specified securities are subscribed for by entering into a sale agreement with the developer; and

• (c) Deposit monies paid by a subscriber for specified securities are held in any of the following trust accounts until the sale agreement becomes unconditional:

  • (i) A trust account operated by a solicitor under the Law Practitioners Act 1982; or

  • (ii) A trust account operated by a real estate agent under the Real Estate Agents Act 1976; or

  • (iii) A trust account operated by a trustee company under the Trustee Companies Act 1967; and

• (d) No settlement of a sale agreement is completed until,—

  • (i) If the developer represents or agrees that communal facilities will be held by a society, the communal facilities are owned or leased by the society; and

  • (ii) If land is included in the communal facilities, the society holds a certificate of title for an estate in fee simple, or a leasehold estate, under the Land Transfer Act 1952 or for a stratum estate under the Unit Titles Act 1972; and

• (e) Where communal facilities are leased, or to be leased, by the society,—

  • (i) The communal facilities are owned, or to be owned, by subscribers for specified securities; and

  • (ii) Interests in the communal facilities can only be purchased with a purchase of residential property; and

• (f) The developer provides to a prospective purchaser of residential property, within 5 business days after receiving a request, a copy of the most recent financial statements of the society; and

• (g) The financial statements of the society are audited annually and distributed to members of the society as soon as reasonably practicable after each audit is completed; and

• (h) All monies paid to the society by its members under the rules are applied solely for the purposes of—

  • (i) Holding, administering, and maintaining the communal facilities (including issuing licences to members of the society that confer rights solely on those members to use the communal facilities and administering those licences in accordance with the rules); or

  • (ii) Administering and enforcing a scheme for the regulation and control of matters relating to the use and enjoyment, repair, decoration and landscaping of, and provision of services to, residential properties; and

• (i) The rules provide that—

  • (i) Members of the society have the right to use and enjoy the communal facilities in accordance with the rules, and have the right to vote at meetings of members of the society; and

  • (ii) On a winding up of the society, any interest of the society in communal facilities vests in the members of the society as tenants in common; and

  • (iii) Levies, fees, or subscriptions payable to the society by its members are determined by a committee of members of the society constituted or appointed under the rules; and

• (j) The society does not have as objects—

  • (i) The carrying on of trading activities; or

  • (ii) The carrying on of business for profit.

The Securities Act (Residential Property Developments) Exemption Notice 1997¹ is revoked.