A legal analysis of the concept of "planning by contract" in non-statutory planning control in Hong Kong

Abstract

Purpose: To study the nature of covenants for planning control from a legal perspective; to examine the legal mechanisms by which different parties may be bound by covenants and to illustrate the better legal meaning for the idea of "planning by contract". Design/methodology/approach: The legal principles in Hong Kong relating to how land covenants may affect land owners are used in analyzing the concept of "planning by contract", which conveys a meaning of an origin from the concept of privity of contract. Examples by reference to real life cases are used to illustrate how planning control through covenants has affected land owners. Findings: Covenants relating to planning control in land leases affect not only the original government lessees but also all subsequent owners to the land. The operation of planning control through covenants is more than a concept based on operation of contract. Research limitations/implications: The analysis is largely based on the law in Hong Kong. The extent to which the analysis may apply elsewhere is a matter depending on the legal framework in the operation of land covenants at different places. Practical implications: Land owners and facility managers should fully understand the mechanism by which land covenants may bind land owners even if they have never agreed to the covenants and that the development potential of the property may be seriously affected. Originality/value: This paper will serve as an aid to land owners and facility managers to understand the mechanism by which land covenants may affect the land and its development potential. © Emerald Group Publishing Limited.