Hong Kong Ordinances

LAND (COMPULSORY SALE FOR REDEVELOPMENT) ORDINANCE - SECT 11

Application of proceeds of sale

(1) The proceeds of sale for the lot the subject of an order for  sale shall,
after deduction of-

   (a)  the expenses referred to in section 10(1) (unless such expenses have
        already been deducted in accordance with section 10(2) or otherwise
        paid); and

   (b)  the legal costs on the assignment of the lot incurred by the trustees
        under the order as assignor to the assignment, be paid to the
        trustees.

(2) The trustees under an order for sale shall apply the proceeds of sale paid
to them in respect of the lot the subject of the order in the following order-

   (a)  first, in the discharge of any liability due to the Government in
        respect of the lot;

   (b)  second, subject to subsection (3), in the discharge of any incumbrance
        affecting the lot;

   (c)  third, subject to any directions given by virtue of section  4
        (6)(a)(iii)(A) and (B) and to subsection (4), in payment of the
        residue to-

        (i)    the majority owner of the lot in accordance with directions but
               only after any compensation payable by the majority owner under
               section  8 (3) to the tenant concerned has been deducted by the
               trustees out of the residue payable to the majority owner; and

        (ii)   the minority owner of the lot in accordance with directions but
               only after any compensation payable by the minority owner under
               section 8(3) to the tenant concerned has been deducted by the
               trustees out of the residue payable to the minority owner.

(3) The trustees under an order for sale do not have to comply with subsection
(2)(b)-

   (a)  where the purchaser of the lot the subject of the order is the
        majority owner or any minority owner of the lot; and

   (b)  to the extent that-

        (i)    any incumbrance affecting the lot is attributable to the
               purchaser; and

        (ii)   the purchaser agrees in writing that the incumbrance is not to
               be discharged.

(4) Where compensation is payable under section 8(3) to a tenant of any
property on a lot the subject of an order for sale, the trustees under the
order shall not pay more than half of the compensation to the tenant before
the trustees are satisfied that the tenant has delivered up vacant possession
of the property to the purchaser of the lot.

(5) The trustees under an order for sale shall pay into the Tribunal-

   (a)  any amount held by the trustees pursuant to any directions given by
        virtue of section 4(6)(a)(iii)(A) and (B) where the event referred to
        that section has not occurred before the trustees have started to
        discharge their duty under subsection (2)(c) in respect of the
        proceeds of sale of the lot the subject of the order; and

   (b)  any residue referred to in subsection (2)(c) in respect of which the
        majority owner or minority owner cannot be found.

(6) Any amount or residue paid into the Tribunal under subsection

(5) shall-

   (a)  where subsection (5)(a) is applicable, be paid to such person or
        persons as is or are specified in the directions concerned under
        section 4(6)(a)(iii)(A) and (B) upon the occurrence of the event
        referred to in that section;

   (b)  where subsection (5)(b) is applicable-

        (i)    be paid to the majority owner or minority owner, as the case
               may be, if and when the owner is found;

        (ii)   be paid into the general revenue if, upon the expiration of 3
               years beginning with the date on which the Tribunal was paid
               the residue, that owner has still not been found.

(7) It is hereby declared that-

   (a)  the application of the proceeds of sale to discharge any liability or
        incumbrance referred to in subsection (2)(a) or (b) shall be on the
        basis that the majority owner or minority owner of the lot shall pay
        for the discharge to the extent that the liability or incumbrance, as
        the case may be, is attributable to that majority owner or
        minority owner, as the case may be;

   (b)  subsection (6)(b)(ii) shall not operate to prevent any claim being
        made against the Government-

        (i)    in relation to any residue referred to in that subsection; and

        (ii)   by a person who would have been entitled, or who appears would
               have been entitled, to be paid the residue if the residue had
               remained with the Tribunal;

   (c)  where a person claims to have had an interest in the lot sold pursuant
        to an order for sale, nothing in this section or in section  8 (1)(a)
        shall prevent the person from taking any action or commencing any
        proceedings in relation to any proceeds of sale arising from the sale
        of that part of the lot to which the interest relates.

(8) Without prejudice to the operation of subsection (3), in this
section "incumbrance" (產權負擔), in relation to a lot, does not include,
unless otherwise specified in directions-

   (a)  if Part II of the New Territories Ordinance ( Cap 97) applies to the
        lot, any Chinese custom or customary right affecting the land;

   (b)  any easements, rights of way or rights of water; or

   (c)  any covenants which run with the lot.

"incumbrance" (產權負擔)