Hong Kong Housing Authority and Housing Department

Ways to Sell an HOS Flat

Ways to Sell an HOS Flat

Owners of Home Ownership Scheme (HOS) flats can sell the flat through different ways, depending on the length of time from the date of the first Deed of Assignment of the flat from the Housing Authority (HA) to an owner (the first assignment). The following alienation restrictions will apply to the owners for the sale of HOS flats:


HOS Flats First Put Up for Sale from 1982 to 2006

Since the five-year alienation restriction period from the date of the first assignment has expired, an owner may sell, let or otherwise alienate the flat in the open market subject to payment of premium to the HA; or the owner may sell the flat in the HOS Secondary Market to eligible persons without payment of premium to the HA.

HOS Flats First Put Up for Sale from 2007 to 2017

The HA will not accept any buyback offers. An owner may at any time choose to pay premium to the HA so that he can sell, let or otherwise alienate the flat in the open market; or he may sell the flat in the HOS Secondary Market from the third year onwards from the date of the first assignment to eligible persons without payment of premium to the HA.

If the flat is within the five-year alienation restriction period from the date of the first assignment, the owner may only enter into the agreement for sale and purchase (including provisional agreement) after the premium application has been accepted by the HA (i.e. the offer to assign the flat to the HA has been declined by the HA).

HOS Flats First Put Up for Sale in 2018
(a)

Within the first two years from the date of the first assignment:

 
  • The owner has to offer to sell the flat to the HA. Under existing policy, the HA will not buy back the flat, but will exercise the power under the Housing Ordinance (Cap. 283) to nominate a buyer. The flat is to be assigned to a nominee of the HA at the original purchase price (Note) in accordance with the procedures and requirements as from time to time stipulated by the HA. The owner is required to pay the required administrative fee for the application for offer to sell. 
 
  • Upon receipt of an application for offer to sell to the HA, the HA reserves the right to accept the assignment of the flat to the HA (instead of to a nominee of the HA) or to decline the offer, in accordance with its prevailing policy.
(b)

Between the third to the fifth year from the date of the first assignment:

 
  • The owner may either offer to sell the flat to the HA or sell the flat in the HOS Secondary Market to a person nominated by the HA without payment of premium and at his/her own negotiated price.
 
  • If the owner offers to sell the flat to the HA, under existing policy, the HA will not buy back the flat, but will exercise the power under the Housing Ordinance (Cap. 283) to nominate a buyer. The flat is to be assigned to a nominee of the HA at the price assessed by the Director of Housing (which is the market value as assessed by the Director of Housing at the time when the offer to sell the flat to the HA was made, less the original discount when the flat was purchased from the HA) in accordance with the procedures and requirements as from time to time stipulated by the HA. The owner will need to pay for the administrative fee for the application for offer to sell and for assessment of the price of the flat. 
 
  • Upon receipt of an application for offer to sell to the HA, the HA reserves the right to accept the assignment of the flat to the HA (instead of to a nominee of the HA) or to decline the offer, in accordance with its prevailing policy.
(c) After five years from the date of the first assignment:
 
  • The owner may sell the flat in the HOS Secondary Market to a person nominated by the HA without payment of premium and at his/her own negotiated price.
 
  • The owner may also sell the flat in the open market after payment of premium.
 
  • The HA will not accept any offer to sell from an owner under HOS Flats 2018 or nominate a buyer after five years from the date of the first assignment.
HOS Flats First Put Up for Sale from 2019 onwards

The HA will not buy back or nominate a buyer (except HOS Secondary Market) to buy the flats first put up for sale under HOS Flats 2019 and onwards.

(a)

Within the first two years from the date of the first assignment:

 

The owner has to sell the flat in the HOS Secondary Market to a person nominated by the HA without payment of premium and at a price not more than the original purchase price (Note) under the first assignment.

(b)

Between the third to the tenth year from the date of the first assignment:

 

The owner has to sell the flat in the HOS Secondary Market to a person nominated by the HA without payment of premium and at his/her own negotiated price.

(c)

After ten years from the date of the first assignment:

 

The owner may sell the flat in the HOS Secondary Market to a person nominated by the HA without payment of premium and at his/her own negotiated price.

The owner may also sell the flat in the open market after payment of premium.

All HOS Flats

The premium which the owner is required to pay is calculated based on the prevailing market value of the flat without alienation restrictions, and the difference between the original purchase price (Note) of the flat and its initial market value as specified in the first assignment. In other words, the premium is calculated by applying the discount of the original purchase price (Note) to the prevailing market value.

 

Please refer to the relevant section in this website for details of the premium payment procedures.

 

Purchasers should take note that the initial market value used to calculate the discount at the time of purchase is the market value prevailing at the date of the Agreement for Sale and Purchase (ASP). The sale price of flats in a sale exercise, once fixed, will remain unchanged throughout the sale period.  As there is normally a time lag of a few months between the fixing of the sale price and the signing of the ASP, during which the market value of a flat may fluctuate according to the market conditions, the actual discount rate at the time of signing the ASP may be different from that when the sale price was fixed.  The actual discount at the time of signing the ASP will be adopted for calculation of the premium.

 

Any purported mortgage, other charge, assignment or other alienation, together with any agreement so to mortgage, charge, assign or otherwise alienate in breach of any term or condition of the ASP or any covenant in the Deed of Assignment of the flat (“unlawful alienation”) shall be void under Section 17B of the Housing Ordinance (Cap. 283). Any person committing unlawful alienation of his/her flat commits an offence and will be subject to criminal sanction under Section 27A of the Housing Ordinance (Cap. 283).

 

Note: Original purchase price is equal to the sale price and means the price of the flat as specified in the first assignment.

 

 

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