Bills Committee on
Land (Compulsory Sale for Redevelopment) Bill

Concerns raised by members and deputations

Clause 2

  1. scope of the Bill and the definition of "lot" (discussed);

  2. to review the Chinese rendition for "property";

  3. to revise the definition of "minority owner" to include anyone having or claiming to have a propriety interest on the lot (Law Society); and

  4. to revise the definition of "redevelopment" in more general terms (LS);

Clause 3

  1. to consider whether mortgagees in possession should be excluded as owners under subclause (1) as presently drafted;

  2. to set out in Part 1 of Schedule 1 the conditions with which application must comply (LS) (subclause (1)(a) and Part 1 of Schedule 1);

  3. to spell out the applicable criteria for preparing valuation reports (LS) (subclause (1)(b) and Part 2 of Schedule 1);

  4. to serve a copy of the application on all interested parties and the Secretary for Justice (LS) (subclause (2));

  5. to consider, where a copy of an application for an order for sale cannot be served on each minority owner of the lot, imposing the requirement of publishing a notice in newspapers or posting a notice in the building calling upon all persons claiming to be minority owners to establish their claims before the Lands Tribunal within a specified time;

  6. to prescribe the manner of service of application in subclause (2) (Mr M Y WAN); and

  7. the minimum threshold (% of undivided shares) for making an application (discussed);

Clause 4

  1. to consider providing for the right of minority owners to dispute the valuation of his and other owners’ properties (LS and Mr M Y WAN (subclause (1)(a)) (agreed by Administration);

  2. to disregard the motive of majority owners for selling the lot (LS) (agreed by Administration to delete subclause (2)(a));

  3. Secretary for Planning, Environment and Lands (SPEL) is given sweeping power to specify the grounds for redevelopment. LS suggests to set out these grounds in the Bill (subclause (2)(b) and clause 12);

  4. to delete the word "all" before "reasonable steps" (agreed by Administration) and consider whether SPEL should issue guidelines on what constitutes "reasonable steps". LS suggests to delete subclause (2)(c);

  5. to serve copies of sale order on all interested parties and/or publish orders in newspapers (subclause (3)); and

  6. to make clear the procedures for obtaining and enforcing orders and to consider the conveyancing aspects of the procedure (LS). To specify the procedures for termination of tenancy and eviction of tenants (Mr M Y WAN) (subclause (5));

Clause 5

  1. to consider other means for sale of the lot (LS) (subclause (1));

  2. the reserve price should take into account the redevelopment potential of the lot "on its own" (LS) (subclause (1)(b) and para 2(a) of Schedule 2);

  3. to consider providing for the power of the Lands Tribunal to extend under certain circumstances the period within which the auction for the sale of the lot has to be held, preferably up to a certain time limit (Mr M Y WAN) (LS suggests 6 months) (subclause (2)(a)); and

  4. the sale order should not automatically be cancelled if the auction is unsuccessful (LS) (subclause (2)(b));

Clause 6

    - to consider confining the scope of conditions within which the Lands Tribunal may specify in an order for sale (Mr M Y WAN);

Clause 7

    - no need for registration of Schedule 3 (LS);

Clause 8

  1. the issue of adversary titles and third party interests (discussed);

  2. tenants’ right to be heard (LS and Mr MY WAN);

  3. whether contractual tenancy should be terminated automatically by sale order (subclause (1)(c)(iii)) (LS);

    - owner-occupiers should be given time to vacate premises (HKIS)

  4. compensation to tenants (discussed);

  5. to make provision for owner-occupier to recover relocation costs and disturbance allowance, etc from the purchaser (HKIS);

  6. to delete subclause (6) and allow owners to let their properties pending application for or after the granting of an order (LS); and

  7. to enable majority owners and minority owners to sue against the purchaser for default of payment for the lot (Mr M Y WAN) (subclause (1)(b));

Clause 9

  1. to put it beyond doubt that failure to complete transaction of the lot the subject of an order by auction shall not be regarded as a breach of conditions;

  2. the clause should apply to the purchaser only (LS);

Clause 10

  1. to clarify whether the expenses of the auction and remuneration to trustees should be borne by the majority owners alone or jointly with the minority owners;

  2. whether proceeds should be apportioned before discharge of liability to the Government and incumbrance (LS and HKIS) (subclause (2));

  3. to clarify the meaning of "incumbrance" (LS) (subclause (2)(b)); and

  4. the trustees appointed need not be professional trustees (LS);

Clause 11 and Part 3 of Schedule 1

    - to clarify the basis of apportionment of proceeds of sale of the lot the subject of an order among the majority owners (LS);

Schedule 2

    - the conditions of sale need to be more extensive (LS);

Schedule 3

    - to allow a longer period for redevelopment under certain circumstances (LS).