Hong Kong Ordinances

LAND (COMPULSORY SALE FOR REDEVELOPMENT) ORDINANCE - SECT 5

Lot to be sold by auction or other means and default on payment by the purchaser of the lot

(1) Where an order for sale is granted and the trustees under the order have
complied with section 7(1) in respect of the lot the subject of the order-

   (a)  subject to paragraph (b), the lot shall be sold by public auction in
        accordance with the conditions specified in Schedule 2; or

   (b)  if the whereabouts of each minority owner of the lot is known, the lot
        may be sold by any other means-

        (i)    agreed in writing by each minority owner and majority owner of
               the lot;

        (ii)   approved by the Tribunal in its absolute discretion; and

        (iii)  in accordance with such conditions, if any, as the Tribunal
               specifies in directions.

(2) Where the trustees under an order for sale receive-

   (a)  at any time before there is a purchaser of the lot the subject of the
        order; and

   (b)  if the whereabouts of each minority owner of the lot is known, notices
        in writing-

        (i)    from each majority owner and minority owner of the lot the
               subject of the order; and

        (ii)   expressly stating that they each do not want the lot to be
               sold, then that order shall immediately be deemed to be of no
               effect as if it had been cancelled by the Tribunal.

(3) Where the purchaser of a lot the subject of an order for sale defaults on
a payment for the lot-

   (a)  the trustees under the order shall, with the agreement in writing of
        the majority owner and minority owner of the lot, institute legal
        proceedings to seek-

        (i)    relief for the loss and damages caused to the owners by reason
               of the purchaser's default;

        (ii)   specific performance of the purchaser's agreement to purchase
               the lot, as may be applicable; and

   (b)  subject to paragraph (a), the deposit money paid by the purchaser of
        the lot shall be forfeited to the trustees for the benefit of the
        majority owner and minority owner of the lot.

(4) Where the lot the subject of an order for sale is not sold-

   (a)  subject to paragraph (b), within the 3 months immediately following
        the date on which the order is made; or

   (b)  within such further period of 3 months as the Tribunal may specify in
        directions given on application made to it by the trustees under the
        order or the majority owner or any minority owner of the lot, then
        that order shall immediately be deemed to be of no effect as if it had
        been cancelled by the Tribunal.

(5) It is hereby declared that-

   (a)  if the lot the subject of an order for sale is to be sold by auction,
        it shall be sold to the highest bidder at the auction;

   (b)  nothing in this Ordinance shall operate to prevent the majority  owner
        or any minority owner of the lot the subject of an order for sale from
        being the purchaser of the lot.