Third to Fifth Year - Sell Back to the HA
Within the third to fifth year from the date of first assignment [Note 1], the Tenants Purchase Scheme (TPS) flat owner may opt to sell the flat back to the Housing Authority (HA) at the buyback price to be assessed by the HA, which is the assessed market value at the time of offer deducting the original purchase discount. The owner must also return to the HA the actual amount of the special credit (if any) granted at the time of purchase. For example :
|Assessed Market Value||= $1,100,000|
|Discount rate at time of purchase
|Buyback price||= $1,100,000 x 45%|
|The amount payable to the
owner after deducting the actual
amount of the special credit (say
$225,000) from the buyback
|= $495,000 - $225,000
When assessing the market value of a TPS flat, the HA will make reference to the transaction prices of similar properties in the open market. The HA will deduct from the buyback price any outstanding debts of the authorised mortgage and other deductible amounts required for the buyback. The actual amount of the special credit (if any) granted at the time of purchase must also be returned to the HA. If the HA declines to accept the buyback application, the owner can sell, let or assign the flat in the open market subject to payment of a premium [Note 3] to the HA.
The owner must apply in writing to the relevant District Tenancy Management Office of the Housing Department to sell the flat back to the HA. The application will then be passed to the Housing Subsidies Sub-division for processing. The HA will charge a total of $6,600 as administrative fee, and the owner must pay the partial administrative fee of $3,400 and hand in a copy of the assignment after the HA has accepted his / her application. The HA will then contact the owner and arrange for a visit to the flat for price assessment. Upon receiving the official buyback price notification from the HA, the owner must pay the assignment fee [Note 4] to the HA within a specified period.
|Note 1:||"The date of first assignment" does not refer to the date when an individual estate was first launched for sale. For TPS flats, it refers to the date of the first deed of assignment of a particular flat from the HA to a purchaser.|
|Note 2:||The actual discount may differ from flat to flat. It should be calculated using the initial market value and list price stated in the first assignment or the latest assignment from the HA (applicable to resale flats).|
|Note 3:||Please see the web page of Premium Payment Arrangement. Flat owners can also call the Housing Department Hotline at 2712 2712 for enquiries on the application procedures for premium assessment for TPS flats, or contact the relevant District Tenancy Management Office or Support Services Section (4) for details.|
|Note 4:||The assignment fee depends on the prevailing charge when the HA's appointed solicitor processes the assignment. Deviation in the charge will be adjusted upon completion of assignment.|