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Sell in the Open Market
Exceeding Five Years

When the Home Ownership Scheme (HOS) flat including those sold from 2007 onwards 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 Housing Authority (HA). Prior to application for assessment and payment of the premium, the 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 providing 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.

HOS Flats Sold from 2007 Onwards

The HA will not accept any buyback offer for all HOS flats sold from 2007 onwards.  Such flat owners may at any time choose to pay premium to the HA so that they can sell, let or assign the flats in the open market.

If the flat is within the 5-year alienation restriction period, the owner may only enter into agreement for sale and purchase (including provisional / formal agreement) after the premium application is accepted by the HA (i.e. the offer to assign the flat to the HA is declined by the HA). In other words, the owner 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 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. 

The agreement for sale and purchase must contain a condition 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.

Getting a Mortgage

HOS 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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