ABSTRACT
This chapter reveals how the Ordinance has reformulated and forcefully expanded the common law rules on misrepresentation in the specific context of sale of new residential properties. Under the design by the Steering Committee, 'dissemination of false or misleading information' included publishing an advertisement containing false or misleading information. This is evident from the fact that the Steering Committee only proposed two offences at the beginning: misrepresentation and dissemination of false or misleading information. With the full operation of the Ordinance, the same statement by a vendor of first-hand residential property that is regarded as misrepresentation by the common law and therefore gives the misrepresentee the right to rescind the contract may now spontaneously commit a criminal offence under the Ordinance. At the same time, with the recognition of both civil liability and criminal liability for making a fraudulent misrepresentation or a reckless misrepresentation for the purpose of inducing another person to purchase any specified residential property.
