The owner of an HOS flat was recently fined $90,000 in court for violating the alienation restrictions on properties under the Home Ownership Scheme.The owner in question rented his flat while the property was still subject to such restrictions, thereby violating section 27A of the Housing Ordinance. As a result he was prosecuted by the Housing Authority.There are restrictions governing the alienation of properties under the Home Ownership Scheme and the Private Sector Participation Scheme. Such properties may not be sold or rented within five years from the first assignment and without the payment of the premium, otherwise it becomes an offence under the Housing Ordinance. Similar restrictions exist for properties purchased under the Flats for Sale Scheme and the Sandwich Class Housing Scheme operated by the Housing Society.

When assisting their clients in the sale or tenancy of properties in the above described categories, estate agents should ascertain whether the units they are dealing with are still within the period of restriction, and whether action is being taken for such restrictions to be removed.