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Hong Kong Property for Hong Kong People

Consent applications for alienation of residential units in New Kowloon Inland Lot No. 6516 and New Kowloon Inland Lot No. 6517

   On 19 March 2013, the Lands Department announced that the "Hong Kong Property for Hong Kong People" ("HKPHKP") measure would be applied to New Kowloon Inland Lot No. 6516 and New Kowloon Inland Lot No. 6517 (collectively, the "Lots", and each a "Lot"). Tenders for the Lots were awarded on 5 June 2013. The Agreement and Conditions of Sale of the Lots were executed on 28 June 2013 and registered in the Land Registry.

Consent under Special Condition No. (16)(a) of the Conditions of Sale of the Lots

2. For the implementation of the HKPHKP measure, the Conditions of Sale of the Lots contain Special Condition No. (16)(a) restricting alienation of any Residential Unit (as defined in the Conditions of Sale) except with the prior written consent of the Director of Lands (the "Director") before the expiry of a period of 30 years from the date of the Conditions of Sale (the "30-year Period"). This period shall end on 27 June 2043.

3. Prior written consent from the Director under Special Condition No. (16)(a) is required for every alienation of the Residential Unit on or before 27 June 2043. The Director has the right to give or refuse consent and impose any terms and conditions for the consent, if given. Below sets out the particulars in relation to the application for consent under Special Condition No. (16)(a).

 

First-hand sale by the developer

4. The developer of the Lots, Ace Dragon Development Limited, has made applications for consent to sell under Special Condition No. (16)(a) and for pre-sale consent under Special Condition No. (14). Prospective purchasers should refer to the consents for the details of the terms before they enter into any preliminary agreement for sale and purchase of any Residential Unit.

Usual consents in secondary market

5. Depending on the nature of the transaction, generally there are three types of consent as follows:

  1. consent to sell
  2. consent to mortgage or charge
  3. consent to underlet or license

Main requirements

6. Each of the following consents, if given, is personal to the applicant(s) and would be subject to the following main requirements or terms:

  1. Consent to sell
    1. The purchaser of each Residential Unit must be a person or persons under either of the following Condition 1.a. or 1.b.:
      1. the person, or each of the persons, is a holder of a valid permanent identity card as defined by section 1A of, and issued under, the Registration of Persons Ordinance ("Hong Kong Permanent Identity Card"); or
        1. persons consisting of
          1. at least one, or more than one, person who is a holder of a valid Hong Kong Permanent Identity Card ("HKPR"); and
          2. one, or more than one, person who is not a holder of a valid Hong Kong Permanent Identity Card ("non-HKPR"); and
        2. all those persons are closely related Note 1; and
        3. in this Condition 1.b., two or more than two persons are closely related if:
          1. where there are two persons, one of them is the parent, spouse, child, brother or sister Note 2 of the other; or
          2. where there are more than two persons, each of them is a parent, spouse, child, brother or sister of each of the others.
    2. The purchaser(s) of a Residential Unit shall purchase that Residential Unit in his/their own name(s) only and as the beneficial owner(s).
    3. The purchaser(s) is/are restricted from entering into any nomination, sub-sale or any transfer of the benefit of the agreement for sale and purchase before completion of the sale and purchase and the execution of the assignment.
    4. The purchaser, and where the purchaser comprises two or more persons, each purchaser, of a Residential Unit shall make a statutory declaration to substantiate Conditions 1 and 2 above in such form and within such time as required by the Director. The statutory declaration shall be in Form A (for use where sole/all purchaser(s) is/are HKPR(s)), Form B (for use by HKPR(s) where purchase is in joint names and involves non-HKPR(s)) or Form C (for use by non-HKPR(s) where purchase is in joint names and involves non-HKPR(s)). The Director shall have the right to revise such forms from time to time and such forms may be downloaded from the departmental website. The statutory declaration(s) should then be placed with the other land documents of that Residential Unit. A certified copy Note 3 of the statutory declaration(s) shall be submitted to the Director within the time limit as required by the Director.
    5. Each of the agreement for sale and purchase and the assignment of each Residential Unit shall contain a certificate by a solicitor as defined in section 2 of the Legal Practitioners Ordinance certifying that: -
      1. each and every person as referred to in Condition 1.a. or 1.b.i.I. above is a holder of a Hong Kong Permanent Identity Card; and
      2. each purchaser named in the relevant agreement for sale and purchase or assignment (as the case may be) of that Residential Unit has made the required statutory declaration in accordance with the conditions of the relevant consent letter issued by the Director under Special Condition No. (16)(a) and such statutory declaration(s) has/have been placed with the other land documents of that Residential Unit on or before completion.
  2. Consent to mortgage or charge
    1. Each mortgage or charge shall only be made or given in favour of specified institutions, namely authorized institutions as defined in section 2 of the Banking Ordinance, The Hong Kong Mortgage Corporation Limited, mortgage insurance companies partnering with authorized institutions and The Financial Secretary Incorporated (each a "Specified Institution"), and (in first-hand sale and by way of second mortgage or charge only) also the developer, Ace Dragon Development Limited.
    2. Each mortgage or charge, including second mortgage or charge, of Residential Unit(s) must contain specific provision(s) to the effect that: -
      1. the exercise by the mortgagee or chargee of the power to sell, lease or otherwise dispose of the Residential Unit(s) shall be subject to compliance with Special Condition No. (16)(a); and
      2. the mortgagee or chargee shall not assign or transfer the mortgage or charge, or (as the case may be) the second mortgage or charge, of the Residential Unit(s) or any benefit of such mortgage or charge, or (as the case may be) second mortgage or charge, of the Residential Unit(s) or enter into any agreement to do so unless the assignment or transfer is made or given in favour of a Specified Institution.
  3. Consent to underlet or license
    1. The term of the tenancy or lease or licence shall not exceed 5 years in the aggregate including any right of renewal.
    2. No premium, fine, key money or similar payment shall be paid by the tenant or licensee.
    3. No rent or licence fee shall be payable in advance for a period greater than 12 calendar months.

Timing for making application for consent

7. For a purchaser of a Residential Unit who wants to raise mortgage to finance the purchase of that Residential Unit, there is no need to make separate application for "consent for purchaser to mortgage or charge". Such "consent for purchaser to mortgage or charge" will be given under the consent for the vendor to sell the Residential Unit concerned and shall take effect immediately upon the purchaser taking up the assignment of the Residential Unit concerned.


8. After the purchase of a Residential Unit has been completed, the owner of that Residential Unit may apply for the following three usual consents or any of them even though there may not be an immediate need to underlet or license, sell or mortgage or charge that Residential Unit: -

  1. consent for owner to underlet or license
  2. consent for owner to sell; and
  3. consent for owner to mortgage or charge.

Application for consent

9. Applications for consent for owner to underlet or license, sell, or mortgage or charge should be submitted to:

Legal Advisory and Conveyancing Office / Kowloon (“LACO/Kowloon”)
Lands Department
18th Floor, North Point Government Offices
333 Java Road,
North Point, Hong Kong

To submit an application, the applicant(s):
  1. should complete and sign the application form in the prescribed form, and send the original of the duly completed and signed application form to LACO/Kowloon by hand or by post;
  2. may choose to submit an application by first sending a copy of the duly completed and signed application form in Adobe Portable Document Format (PDF) to LACO/Kowloon by email at the designated email address HKPHKP@landsd.gov.hk (“the designated email address”) and thereafter sending the original of that application form by hand or by post to LACO/Kowloon within 3 working days from the date of the email submission;
  3. should submit the following supporting documents: 
    1. a certified copyNote 3 of the last assignment of the Residential Unit concerned showing that the applicant(s) is/are the owner(s) of the Residential Unit to LACO/Kowloon by hand or by post; and
    2.  an up-to-date land register of the Residential Unit concerned obtained from the Land Registry showing the current particulars of the Residential Unit and that the applicant(s) is/are the owner(s) of the Residential Unit to LACO/Kowloon (either by hand or by post or by email at the designated email address).
If the applicant(s) choose to submit the duly completed and signed application form by hand or by post, the supporting documents should be submitted with the application form.  If the applicant(s) choose to submit an application by first sending a copy of the duly completed and signed application form in PDF by email, the supporting documents should be submitted within 3 working days from the date of the email submission.
 

Special consent

10. There may be special circumstances whereby there is a genuine need for a Residential Unit subject to the HKPHKP measure to be held by non-HKPR(s). Application for a special consent will be considered on the merits of each individual case and any consent, if given, would be subject to such terms and conditions as the Director may impose. Generally, application for consent for a transfer to a non-HKPR or non-HKPRs would be considered upon production of supporting documents to the satisfaction of the Director in the case of an assent to lawful beneficiary due to the death of an owner or for an assignment to a spouse pursuant to a court order due to divorce or separation. A non-HKPR owner holding a Residential Unit after obtaining the due consent is subject to the same HKPHKP measure when he or she alienates the Residential Unit within the 30-year Period.


11. There may be circumstances whereby a Residential Unit is held by a mortgagee in possession upon the mortgagor in default or vested in a trustee-in-bankruptcy. Application for special consent to sell or to underlet will be considered upon production of supporting documents of the ownership to the satisfaction of the Director and any consent, if given, would be subject to the same HKPHKP measure.

12. There is no prescribed form for the special consent mentioned in paragraphs 10 and 11 above. Application for such consent should be made by letter to LACO/Kowloon together with supporting documents.

 

Who can apply for consent

13. Application for consent under Special Condition No. (16)(a) may be made by the applicant(s) on his/their own or through his/their solicitors.

Fees

14. No fee will be charged by the Lands Department for consents in respect of individual Residential Unit under Special Condition No. (16)(a) of the Conditions of Sale.

Forms

15. The application form for the consent and the prescribed forms of statutory declarations may be downloaded from the Lands Department’s website.

Application Form


Statutory Declaration

  • Form ANote 4: for use where sole/all purchaser(s) is/are HKPR(s)
  • Form BNote 4: for use by HKPR(s) where purchase is in joint names and involves non-HKPR(s)
  • Form CNote 4: for use by non-HKPR(s) where purchase is in joint names and involves non-HKPR(s)

Enquiries

16. For enquiries, please call telephone number 2231 5536.


Lands Department
December 2023

 

Notes :

  1. Regarding the meaning of "closely related", the Lands Department follows the definition under section 29AD of the Stamp Duty Ordinance.
  2. Regarding the meaning of the terms "parent", "spouse", "child", "brother" or "sister", the Lands Department follows the meaning as ascribed to these terms by the Stamp Office when dealing with ad valorem stamp duty.
  3. Copy as certified by a solicitor practising in Hong Kong or by the Land Registrar.
  4. The Chinese versions of Form A, Form B and Form C provided in this web site are for reference only.