Tenants Purchase Scheme and the newly prescribed forms for the HOS Secondary Market Scheme
|Circular No. 00-05 (CR)
||15 April 2000
Under the Tenants Purchase Scheme ("TPS"), tenants of public rental housing may purchase the flats they occupy and become owners thereof. Upon the expiry of a period of 2 years from the date of the first Assignment, flats purchased under the TPS may be put on sale to certain categories of persons (including existing tenants of the public rental housing estates of the Housing Authority and the Housing Society and applicants for public rental housing who have passed all vetting procedures and are ready for flat allocation) in the HOS Secondary Market Scehme.
The first batch of TPS flats are available for sale in the HOS Secondary Market Scheme. Practitioners are referred to the Procedural Guidelines of the Secondary Market Scheme annexed to Circular No. 99-02 (CR) for the procedure involved. Upon sale of the TPS flats in the HOS Secondary Market Scheme, owners are not required to pay premium to the Housing Authority. The liability to pay premium will arise upon sale or leasing in the open market after the expiry of 5 years from the date of the first Assignment. For the purpose of calculating premium for TPS flats in accordance with paragraph 1 of the Schedule to the Housing Ordinance (Cap. 283), the "Purchase Price" means the list price specified in the assignment and not the consideration stated therein.
From 15 April 2000, the sale and purchase of flats under the Home Ownership Scheme, the Private Sector Participation Scheme, and the TPS in the HOS Secondary Market Scheme will be effected by the newly revised forms of Provisional Agreement for Sale and Purchase ("PASP"), Formal Agreement for Sale and Purchase ("FASP"), and Assignment prescribed by the Housing Authority. If the prescribed forms are not used, the transactions will be void.
A new clause (Clause 21) is inserted into the PASP to enable the parties to insert additional terms in the Schedule therein provided that in the event of any contradiction with the prescribed terms of the PASP and the FASP, the prescribed terms shall prevail. Practitioners are advised to familiarize themselves with the terms of the PASP and the FASP.
The prescribed forms of PASP, FASP and Assignment are available for inspection at the Resource Centre of the Authority (Suite 1505, 15th Floor, Central Plaza, 18 Harbour Road, Wan Chai) and can be obtained from the Housing Authority. For details, please call the Hotline of the Housing Authority (2712 8000).