Many people believe that the hardest part of buying a home in Hong Kong is simply saving up the down payment and passing the bank’s mortgage stress test. Once you successfully get on the property ladder and make your monthly repayments on time, does it mean that once you close your front door, you can do whatever you like inside your property?
In reality, becoming a property owner in Hong Kong involves much more than just servicing a mortgage. From the moment you sign the Sale and Purchase Agreement at a solicitor’s office, you not only acquire ownership of the property, but also take on a series of legal responsibilities tied to that ownership.
In multi-owner buildings and estates, the day-to-day management and maintenance of the property are not solely handled by the management company. Instead, they are built upon a legal framework of shared responsibility among all owners. Whether it is the upkeep of common areas, the payment of management fees, or the overall safety and management of the building, owners must comply with the Deed of Mutual Covenant (DMC) and relevant laws. It is not sufficient to only manage your own individual unit and disregard everything else.
This article provides a clear and practical overview for new owners and prospective buyers, analysing the three fundamental legal obligations of property owners from legal, financial, and building management perspectives.
Obligation 1: Comply with the Deed of Mutual Covenant (DMC)
During the legal process of purchasing a property in Hong Kong, your solicitor will inevitably draw your attention to an extremely important legal document—the Deed of Mutual Covenant (DMC).
In simple terms, the DMC is a legal agreement entered into by the developer and the initial purchasers, governing the management and use of the entire property. Once registered at the Land Registry, its provisions “run with the land” and are binding on all subsequent owners. Even if a buyer has not actually reviewed the document, this does not excuse non-compliance. However, any provision that conflicts with statutory law or the land lease will not be enforceable.
Common DMC Pitfalls Faced by Owners
1. Pet Restrictions
This is one of the most common sources of disputes in building management. Many DMCs clearly state restrictions such as “no dogs allowed” or “no pets without prior approval.” Even if your pet is well-behaved, breaching the DMC or causing nuisance to others may result in legal action by the Owners’ Corporation, including applying for an injunction to require the removal of the pet.
2. Alterations to Exterior and Appearance
Some owners assume that once they purchase a unit, they can install additional windows on balconies or change window frame colours. However, most DMCs require that the building’s external appearance—including façade and window design—must remain uniform. Unauthorized alterations may result in the owner being required to reinstate the original condition at their own expense.
3. Change of Use
Residential units are typically restricted to private residential use under the DMC. Converting a flat into a commercial space (e.g. private kitchen businesses, studios, or short-term rentals such as Airbnb) may breach the DMC and potentially violate the Hotel and Guesthouse Accommodation Ordinance. In serious cases, legal action may be taken, and mortgage arrangements may also be affected.
Obligation 2: Pay Management Fees and Maintenance Funds Based on Undivided Shares
“I never use the clubhouse—why should I pay management fees every month?”
“I live on a low floor—why should I contribute to lift repairs?”
These complaints are common, but from a legal and DMC perspective, they generally do not constitute valid defences.
Under Hong Kong’s co-ownership system, all common areas of a building (such as lobbies, lifts, security facilities, staircases, equipment rooms, and external walls) are jointly owned and shared by all owners. As such, the costs of daily operation—security, cleaning, and maintenance—must be shared collectively.
Each owner’s contribution is typically calculated based on the unit’s undivided shares or management shares, as specified in the DMC. Regardless of actual usage or occupancy, owners are required to fulfil their payment obligations according to the DMC.
Consequences of Refusing to Pay Management Fees
Step 1: Demand Letters and Interest
The management company will issue payment reminders, and may charge interest on overdue amounts, along with administrative and legal costs, as permitted by the DMC.
Step 2: Legal Recovery
The Owners’ Corporation may commence legal proceedings to recover the outstanding amounts. Owners may be liable not only for the arrears but also for legal costs.
Step 3: Registration of Debt (“Charging Order” / “Encumbrance”)
If judgment is obtained, the debt can be registered against the property title at the Land Registry. This can significantly affect the property’s marketability, and buyers or banks may require full repayment before proceeding.
Step 4: Enforcement Actions
In extreme cases, enforcement proceedings may be taken, potentially leading to the forced sale of the property to recover the outstanding debt and related costs.
Obligation 3: Maintenance, Safety, and Third-Party Liability under the Building Management Ordinance
Under the Building Management Ordinance (Cap. 344), property owners share collective responsibility for the maintenance and management of the common parts of the building, ensuring structural safety, hygiene, and proper operation of building facilities.
As buildings in Hong Kong age, regulatory oversight has tightened. Maintenance responsibilities are not determined by “who uses what,” but are generally shared collectively by all owners in accordance with the DMC and applicable laws.
1. Mandatory Building and Window Inspection
Buildings of a certain age (typically around 30 years or above) may be selected for the Mandatory Building Inspection Scheme, while buildings aged around 10 years or above may fall under the Mandatory Window Inspection Scheme.
Upon receiving a statutory notice, owners must arrange inspections and necessary repairs through qualified professionals within a specified timeframe. Failure to comply may result in prosecution and fines.
Additionally, if a window belonging to an individual unit causes injury due to lack of maintenance, the owner may bear legal liability.
2. Third-Party Liability Risks
If inadequate maintenance of common areas (e.g. falling concrete from external walls) causes injury or property damage, affected parties may bring civil claims against the Owners’ Corporation.
Although it is generally required to maintain third-party liability insurance, if damages exceed the coverage limit or if the insurer denies liability under certain circumstances, the shortfall may need to be shared among owners according to their ownership shares.
In serious cases, substantial compensation claims may place significant financial pressure on individual owners.
Conclusion: Property Ownership Brings Not Only Rights, but Legal Responsibilities
In Hong Kong’s multi-owner building system, owning a property is not simply about enjoying residential use or investment returns. It also entails a series of clearly defined and legally binding responsibilities.
Whether it is complying with the DMC, paying management fees, or participating in building maintenance and safety obligations, these responsibilities are inseparable from ownership and are not optional.
Many owners attempt to rely on arguments such as “I didn’t use it” or “I didn’t know,” but such defences are generally not valid under the law. The DMC is binding across successive ownership, while the Building Management Ordinance establishes a framework based on collective responsibility and joint management.
Ultimately, rather than reacting to problems after they arise, property owners should understand their obligations early and actively participate in building management. This not only reduces legal and financial risks, but also helps preserve property value and maintain a stable and safe living environment.