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Sell in the Open Market
Third to Fifth Year

If the Housing Authority (HA) declines to accept the buyback application of a TPS flat falling within the third to fifth year from the date of first assignment, the owner can sell, let or assign the flat in the open market subject to payment of a premium to the HA. These owners may only enter into agreement for sale and purchase (including provisional / formal agreement) after his premium application is accepted by the HA (i.e. his / her offer to assign the flat to the HA is declined by the HA). In other words, owners can only enter into agreement for sale and purchase upon receiving HA's acknowledgement of the premium application. If the owner enters into agreement for sale and purchase before HA's acceptance of his / her premium application, he / she will be in breach of the Housing Ordinance. Once convicted, the owner is liable to a fine of $500,000 and to imprisonment for one year. The agreement for sale and purchase entered into by him / her will also be void.

It is necessary to pay the premium before the flat is sold, let or assigned in the open market. Nevertheless, upon receiving HA's acceptance of the premium application, owners of a TPS flat falling within the third to fifth year from the date of first assignment can enter into agreement for sale and purchase provided that it is a condition of such agreement that the premium as assessed by the Director of Housing be paid prior to the assignment and within 28 days from the date of the agreement or within such other period as may be stipulated by the Director of Housing. Any person who sells, lets or assigns the flat in the open market before payment of the assessed premium commits an offence under the Housing Ordinance and is liable on conviction to a fine of $500,000 and to imprisonment for one year and such alienation or assignment will also be void.

Exceeding Five Years

When the TPS flat exceeds five years from the date of first assignment, the owner can sell, let or assign the flat in the open market subject to payment of a premium to the HA.  However, owner of the flat which exceeds five years from the date of first assignment can enter into agreement for sale and purchase (including provisional / formal agreement) before application for assessment and payment of the premium provided that it is a condition of such agreement that the premium as assessed by the Director of Housing be paid prior to the assignment and within 28 days from the date of the agreement or within such other period as may be stipulated by the Director of Housing. Any person who sells, lets or assigns the flat in the open market before payment of the premium commits an offence under the Housing Ordinance and is liable on conviction to a fine of $500,000 and to imprisonment for one year and such alienation or assignment will be void.

Getting a Mortgage

TPS flat owners cannot get a mortgage for their flats before payment of a premium or without prior approval of the Director of Housing. However, they can make arrangement with their banks and solicitors to execute the mortgage deed on the day when the Certificate for Removal of Alienation Restrictions takes effect. Anyone who mortgages his / her flat before payment of the premium or without the prior approval of the Director of Housing commits an offence under the Housing Ordinance and the said mortgage deed will be void.


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