Hong Kong Ordinances

LAND (COMPULSORY SALE FOR REDEVELOPMENT) ORDINANCE - SECT 4

Determination of application

(Past version on 07/06/1999).

(1) Subject to subsection (2), the Tribunal shall determine an application
under section 3(1) by-

   (a)  first-

        (i)    if any minority owner of the lot the subject of the application
               disputes the value of any property as assessed in the
               application, hearing and determining the dispute;

        (ii)   in the case of any minority owner of the lot who cannot be
               found, requiring the majority owner of the lot to satisfy the
               Tribunal that the value of the minority owner's property as
               assessed in the application is- (A) not less than fair and
               reasonable; and (B) not less than fair and reasonable when
               compared with the value of the majority owner's property as
               assessed in the application;

   (b)  second-

        (i)    making an order that all the undivided shares in the lot the
               subject of the application be sold for the purposes of the
               redevelopment of the lot; or

        (ii)   refusing to make such an order; and

   (c)  third, where paragraph (b)(i) is applicable-

        (i)    appointing in the order for sale trustees satisfactory to the
               Tribunal nominated by the majority owner to discharge the
               duties imposed on trustees under this Ordinance in relation to
               the lot; and

        (ii)   authorizing the trustees to charge such remuneration for their
               services as trustees as the Tribunal thinks fit and specified
               in the order.

(2) The Tribunal shall not make an order for sale unless, after hearing the
objections, if any, of the minority owners of the lot the subject of the
application under section 3(1) concerned, the Tribunal is satisfied that-

   (a)  the redevelopment of the lot is justified (and whether or not the
        majority owner proposes to or is capable of undertaking the
        redevelopment)-

        (i)    due to the age or state of repair of the existing development
               on the lot; or

        (ii)   on 1 or more grounds, if any, specified in regulations made
               under section 12; and

   (b)  the majority owner has taken reasonable steps to acquire all the
        undivided shares in the lot (including, in the case of a minority 
        owner whose whereabouts are known, negotiating for the purchase of
        such of those shares as are owned by that minority owner on terms that
        are fair and reasonable).

(3) Subject to section 8(3) and (4), the Tribunal shall not, in determining an
application under section 3(1), take into account any provision of the
Landlord and Tenant (Consolidation) Ordinance ( Cap 7) relating to the right
of a tenant whose tenancy is terminated or is sought to be terminated.

(4) The majority owner of the lot the subject of an order for sale shall
cause-

   (a)  subject to subsection (5), a copy of the order to be served on each
        minority owner of the lot;

   (b)  a copy of the order to be served on the Director of Lands; and

   (c)  a notice to be published-

        (i)    in not less than 1 Chinese language newspaper (and in the
               Chinese language), and in not less than 1 English language
               newspaper (and in the English language), circulating generally
               in Hong Kong; and

        (ii)   stating- (A) sufficient particulars of the lot to identify the
               lot; (B) that the Tribunal has made an order that all the
               undivided shares in the lot be sold for the purposes of the
               redevelopment of the lot; and (C) that the lot will be sold by
               auction (or, where section 5(1)(b) is applicable, the other
               means referred to in that section by which the lot will be
               sold).

(5) Where it appears to the Tribunal that a copy of an order for  sale cannot
be served in accordance with subsection (4)(a), the Tribunal may, if it thinks
fit, by order-

   (a)  dispense with such service on any owner or class of owners mentioned
        in the order; and

   (b)  direct notices to be published at such time and in such manner as it
        thinks fit, informing all persons claiming to be owners of the lot-

        (i)    that the Tribunal has made an order for sale of the lot; and

        (ii)   where and the times during which a copy of the order may be
               obtained.

(6) Where the Tribunal makes an order for sale, it may order, subject to
section 8(3), (4) and (5), that compensation be paid to a tenant for
termination of his tenancy under section 8(1)(b) and it may also give such
directions as it thinks fit-

   (a)  relating to-

        (i)    the sale and purchase of the lot the subject of the order,
               including (but without limiting the generality of the
               foregoing) settling the particulars and conditions of sale of
               the lot;

        (ii)   the termination of tenancies of any tenants of any property on
               the lot;

        (iii)  subject to section 11(5), the application of the proceeds of
               the sale including- (A) the holding by the trustees of such
               part of those proceeds as is specified by the Tribunal in view
               of any lis pendens affecting the lot; and (B) the payment of
               that part of those proceeds, upon the occurrence of an event
               specified by the Tribunal, to such person or persons as is or
               are specified by the Tribunal;

   (b)  requiring the trustees under the order for sale to pay into the
        Tribunal the proceeds of sale of the lot the subject of the order
        (after deduction, if any, pursuant to section 10(2) or 11(1) or (2)(a)
        and (b)), which includes but is not limited to- (Amended 32 of 2000 s.
        48)

        (i)    any deposit money for the purchase of the lot;

        (ii)   any other part of the proceeds of sale that is required under
               this Ordinance to be held by or paid to the trustees; and

   (c)  which are not inconsistent with the other provisions of this
        Ordinance, and, in any such case, subsections (4)(a) and (5) shall,
        with all necessary modifications, apply to those directions as they
        apply to an order for sale.

(7) Where proceeds of sale are paid into the Tribunal pursuant to a direction
given under subsection (6)(b), the Tribunal shall, in accordance with rules
made under section 10A(1) of the Lands Tribunal Ordinance ( Cap  17), release
such proceeds or any part of it to the respective persons who would have been
entitled to payment of the proceeds under the provisions of this Ordinance if
the proceeds of sale had remained with the trustees.

(8) Any proceeds of sale-

   (a)  paid into the Tribunal pursuant to a direction given under subsection
        (6)(b); and

   (b)  not yet released pursuant to subsection (7) on the expiration of 3
        years beginning with the date on which such proceeds were paid into
        the Tribunal, shall be paid into the general revenue, and, in any such
        case, section  11 (7)(b) and (c) shall apply in relation to the
        proceeds with all necessary modifications.

(9) In any case of doubt or difficulty or in any matter not provided for under
this Ordinance, the trustees under an order for sale, or the majority owner or
any minority owner of the lot the subject of the order, may apply to the
Tribunal for directions.

(10) The Tribunal may make an order amending an order for sale by appointing a
new trustee or trustees either in substitution for or in addition to any
existing trustee or trustees under the order for sale

(even though there is no existing trustee)-

   (a)  upon the application of the trustees under the order for sale or the
        majority owner or minority owner of the lot; and

   (b)  if the Tribunal is of the opinion that it is expedient to do so.

(11) The remuneration referred to in subsection (1)(c)(ii) to be paid to the
trustees under an order for sale shall be paid by the majority  owner of the
lot the subject of the order.

(12) Where-

   (a)  an application under section 3(1) is made by a majority owner
        consisting of 2 or more persons; and

   (b)  any of those persons (or if the undivided share in the lot owned by
        any such person has been assigned, his successor in title) informs the
        Tribunal, at any time before an order for sale, if any, is made on the
        application, that he no longer wishes to be a party to the
        application, then the application shall thereupon be deemed to be
        withdrawn irrespective of the percentage of undivided shares in the
        lot the subject of the application owned by the other persons or their
        successors in title

(if applicable) who wish to remain as parties to the application.

(13) Where the Tribunal refuses to make an order for sale, the majority owner
in the application made under section 3(1) shall, as soon as practicable
thereafter, cause the registration referred to in section  3 (3)(b) of the
application to be vacated under section 20 of the Land  Registration Ordinance
( Cap 128).