Hong Kong Ordinances

STAMP DUTY ORDINANCE - SECT 29D

Conveyances on sale of residential property

(Past version on 01/04/1999).
(Past version on 30/06/1997).

(1) If a conveyance on sale of residential property is presented for stamping,
or an application for stamping is made under section 18F, and the Collector
has reason to believe- (Amended 21 of 2003 s. 15)

   (a)  that a chargeable agreement for sale or an unwritten sale  agreement
        that would, if it were in the form of an instrument, be a
        chargeable agreement for sale has been made in respect of all or any
        part of that property after it was vested in the vendor; and

   (b)  that, in respect of that agreement, section 29B(1) has not been
        complied with, or the agreement for sale has not been duly stamped or
        stamped under section 5(1), 13(2) or 18E(1), the Collector may refuse
        to stamp the conveyance on sale or issue a stamp  certificate in
        respect of the conveyance on sale.

(2) Subject to subsection (3), where a conveyance on sale of
residential property is executed in conformity with a chargeable agreement 
for sale and-

   (a)  the agreement for sale is duly stamped or stamped under section  5
        (1), 13(2) or 18E(1) (whether before or after the execution of the
        conveyance on sale), the conveyance on sale is chargeable with
        stamp duty of $100;

   (b)  the agreement for sale is not stamped-

        (i)    the conveyance on sale is chargeable with stamp duty under head
               1(1) in the First Schedule;

        (ii)   for the purposes of subparagraph (i), the conveyance shall be
               deemed to have been executed on the date that the
               agreement for sale was made or, if the agreement for sale was
               preceded by an agreement for sale, or an
               unwritten sale agreement, made between the same parties and on
               the same terms, the date when the first such agreement was
               made; and (Amended L.N. 90 of 1999 and 44 of 1999 s. 20)

        (iii)  the agreement for sale is chargeable with stamp duty of $100.

(3) Where a conveyance on sale of residential property is executed in
conformity with 2 or more agreements for sale, each relating to different
parts of the residential property, and one or more of those agreements is a
chargeable agreement for sale, then-

   (a)  if each of the chargeable agreements for sale is duly stamped or
        stamped under section 5(1), 13(2) or 18E(1) (whether before or after
        the execution of the conveyance on sale), the conveyance on sale is
        chargeable with stamp duty under head 1(1) in the First Schedule, less
        the total amount of stamp duty (excluding any penalty) paid or
        assessed to be payable in respect of those agreements for sale;

   (b)  if any of the chargeable agreements for sale is not duly  stamped or
        stamped under section 5(1), 13(2) or 18E(1), the conveyance on  sale
        shall not be stamped except by the Collector upon payment of the
        stamp duty payable in respect of the conveyance under head 1(1) in the
        First Schedule, and any penalty payable in respect of that
        agreement for  sale under section 9, less the total amount of
        stamp duty paid or assessed to be payable in respect of any of the
        other chargeable agreements for sale;

   (c)  if the conveyance on sale is duly stamped or stamped under
        section 5(1), 13(2) or 18E(1) before each of the chargeable agreements
        for sale is duly stamped, any unstamped chargeable agreement for sale
        is chargeable with stamp duty of $100, any
        chargeable agreement for sale that has been assessed remains
        chargeable with the amount of the stamp duty assessed, and any
        chargeable agreement for sale that has been stamped under
        section 13(2) but not assessed ceases to be chargeable with any
        further stamp duty.

(4) Where a conveyance on sale of residential property is executed in
pursuance of a chargeable agreement for sale and is in favour of a person
named in the agreement as the purchaser and another person who is not so
named, then-

   (a)  if the agreement for sale is duly stamped or stamped under
        section 5(1), 13(2) or 18E(1) (whether before or after the execution
        of the conveyance on sale), the conveyance on sale is chargeable with
        stamp  duty under head 1(1) in the First Schedule by reference to the
        consideration for the conveyance, less a fraction of the stamp duty
        representing the proportion of the residential property that is vested
        in the person named in the agreement as the purchaser; and for the
        purposes of this subsection, joint tenants shall be treated as having
        equal undivided shares in the property;

   (b)  if the agreement for sale is not so stamped-

        (i)    the conveyance on sale is chargeable with stamp duty under head
               1(1) in the First Schedule;

        (ii)   -(iii) (Repealed L.N. 90 of 1999 and 44 of 1999 s. 20)

(5) Where a conveyance on sale of residential property is executed in
pursuance of a chargeable agreement for sale and is in favour of one or some
(but not all) of the persons named in the agreement as the purchaser or
purchasers, then-

   (a)  if the agreement for sale is duly stamped, or stamped under
        section 5(1), 13(2) or 18E(1) (whether before or after the execution
        of the conveyance on sale), the conveyance on sale is chargeable with
        stamp  duty under head 1(1) in the First Schedule by reference to the
        consideration for the conveyance, less a fraction of the stamp duty
        representing the proportion of the residential property that,
        according to the agreement for sale, was to be conveyed to the person
        or persons in whose favour the conveyance on sale was executed; and
        for the purposes of this subsection, an agreement that provides for a
        conveyance to purchasers as joint tenants shall be treated as an
        agreement to convey the property to those purchasers in equal
        undivided shares;

   (b)  if the agreement for sale is not so stamped-

        (i)    the conveyance on sale is chargeable with stamp duty under head
               1(1) in the First Schedule;

        (ii)   -(iii) (Repealed L.N. 90 of 1999 and 44 of 1999 s. 20)

(6) For the purposes of this section-

   (a)  a conveyance on sale shall be deemed to be a conveyance on sale of
        residential property unless it contains a statement certifying that
        the immovable property subject to the conveyance is
        non-residential property within the meaning of section 29A(1);

   (b)  a conveyance on sale that contains such a statement may be shown to be
        a conveyance on sale of residential property;

   (c)  a conveyance on sale is not executed in conformity with an
        agreement for sale unless the conveyance on sale-

        (i)    is of the whole or part of the immovable property subject to
               the agreement for sale; and

        (ii)   is in favour of the person or all persons named in the
               agreement for sale as the purchaser or purchasers and no other
               person; but, for the purpose of this paragraph, a person and a
               parent, spouse or child of that person shall be treated as the
               same person;

   (d)  a conveyance on sale is not executed in pursuance of an
        agreement for sale unless the conveyance on sale is of the whole or
        part of the immovable property subject to the agreement for sale and
        is not executed in conformity with the agreement for sale;

   (e)  a reference in subsection (3) to an agreement for sale includes a
        reference to an agreement for sale made before the commencement of the
        Stamp Duty (Amendment) Ordinance 1992 (8 of 1992). (Part IIIA added 8
        of 1992 s. 4. Amended 21 of 2003 s. 15)