UNIVERSITY OF HONG KONG LIBRARY. Hong Kong Collection. Gift from: Information Services Dept., Hong Kong

Transcription

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2 UNIVERSITY OF HONG KONG LIBRARY Hong Kong Collection Gift from: Information Services Dept., Hong Kong

3 A SIMPLE GUIDE TO CROWN LAND TRANSACTIONS FOREWORD This booklet is intended as a guide to the procedure to be followed in making application to the Government concerning land, and it outlines the general principles followed by the Crown Lands & Survey Office and the New Territories Administration. It refers to land on Hong Kong and Ap Lei Chau Islands, in Kowloon and New Kowloon, and in the New Territories. Any further information required in connection with land matters can be obtained from the Crown Lands & Survey Office, for areas on Hong Kong Island and in Kowloon, or from the appropriate District Office for land in the New Territories. The staff of these offices are always available to assist members of the public seeking information on land matters. The reader is warned that the contents of this publication, compiled by the Crown Lands & Survey Office in conjunction with the New Territories Administration, are intended only for guidance, and have no legal effect. Where a matter of law is involved, they should not be relied on as being in any way an authoritative interpretation of the law.

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5 GENERAL POLICY 1. With the exception of the land on which St. John's Cathedral Church stands, all land in Hong Kong is owned by the Crown. Land administration on Hong Kong Island and in Kowloon is the responsibility of the Director of Public Works who also deals with the part of the New Territories known as New Kowloon which is exempted from Part H of the New Territories Ordinance and is registered in the Land Office, Victoria, between Boundary Street and the Kowloon foothills. The Secretary for the New Territories is responsible for land administration throughout the rest of the New Territories. Land policy is the responsibility of the Secretary for the Environment seeking advice of Executive Council, where necessary. 2. For Hong Kong Island and Kowloon all leases of Crown land and private land transactions are recorded in the Land Office of the Registrar General's Department, and for the New Territories, such records, other than those kept in the Land Office relating to land which is exempted from Part II of the New Territories Ordinance, are kept in the District Land Offices of the New Territories Administration. The Registrar General also advises the Director of Public Works, the Secretary for the New Territories and the Secretary for the Environment on legal matters relating to the disposal and control of land. 3. The Crown Lands 8- Survey Office is an Office of the Public Works Department and is headed by the Director of Lands & Survey who is responsible to the Director of Public Works. The day-to-day administration of the Office is the responsibility of the Principal Government Land Agent. The Crown Lands & Survey Office is divided into three main Branches, each Branch being under the overall control of a very high level officer as follows: Branch (i) Land (ii) Valuation Controller Government Land Agent Government Land Agent (Valuation) (iii) Survey Government Land Surveyor. 4. The Land Branch is itself divided into two Divisions: (a) Urban Estate Division; and (b) Government Property Management/Modification Division,

6 each Division being headed by a Chief Estate Surveyor. (a) The Urban Estate Division is divided into two Sections, one each for Hong Kong and Kowloon. The Division deals with all sales, new leases and allocation of Crown land on Hong Kong Island and in Kowloon and New Kowloon and the general administration and control of Crown land in the Urban areas. This also includes the preparation of tender documents, grants by private treaty, exchange or extension, allocations of land for Government purposes and issue of Crown Land Licences and Short Term Tenancies. It is also responsible for clearance action under the Crown Land Ordinance. (b) The Government Property Management/Modification Division is responsible for the letting and management of premises owned but not occupied by Government, and it conducts negotiations for the letting of Government buildings and piers which are not required for the time being for Government purposes or which are intended for non-government use. It also manages buildings on former leased land which have reverted to the ownership of the Crown either through re-entry, resumption or through expiry of leases. In addition, the Property Management Division manages land and buildings vested in the Colonial Treasurer Incorporated and makes proposals for the ultimate disposition of such land. It is also responsible for the Modification of lease conditions. 5. The Valuation Branch, under the overall control of the Government Land Agent (Valuation) and assisted by two Chief Estate Surveyors, is divided into two Divisions: (a) (b) Valuation Division; and Urban Renewal and Environmental Improvement Division. (a) The Valuation Division is concerned with a wide variety of functions including acquisition for public purposes of privately held land by negotiation for surrender, or resumption through arbitration board procedure, valuations for Government transactions and projects involving the use of land, valuations for estate duty and for incremental value under the Demolished Buildings (Redevelopment of Sites) Ordinance. It is also responsible for providing Government with valuation advice for special purposes. '2

7 (b) The Urban Renewal and Environmental Improvement Division is responsible for acquisition of privately held land for Urban Renewal and Environmental Improvement projects and co-ordination of projects associated therewith. It also deals with the regrant and renewal of expired leases and the general administration of land and building vested in the Colonial Treasurer Incorporated (but not management thereof). 6. The Survey Branch, under the overall control of the Government Land Surveyor, is divided geographically into two Divisions: (a) (b) Mainland Division; and Hong Kong and Islands Division. Each Division is headed by a Chief Land Surveyor. Branch is divided into four main categories: (a) Control Survey The work of the The provision and maintenance of the rigid framework of fixed ' points on both horizontal and vertical planes on which all surveys are based, i.e. triangulation and traverse stations and level datum bench-marks. (b) Mapping Survey (c) (d) Survey for the preparation of plans and maps of the whole Territory at different scales and their subsequent revision at regular intervals, both by traditional ground survey methods and by aerial photography and photogrammetry. Title Survey The delineation and recording of all property boundaries in the urban areas (and in planned areas of the New Territories), the implementation of all town planning layouts, surveys for surrenders, grants, sales, exchanges, Crown leases, etc. Cartography The production of plans and maps at different scales for both "mapping" and "title" purposes. The main Cartographic Sections and their supporting Photo-reproduction Section are located in Murray Building.

8 METHODS OF DISPOSAL OF CROWN LAND 7. The Government's basic policy is to sell leases to the highest bidder at public auction; all land available to the general public for normal uses is sold in this way. Land for special low cost housing projects, for public utilities, schools, churches, temples, clinics, welfare and certain charitable purposes is usually granted by private treaty, and in such cases, the premium charged varies from nothing for nonprofit-making purposes up to the full market value for public utilities. 8. The general practice followed in dealing with the various types of land transactions is given below; the practice is, of course, liable to alteration but the information given should be of assistance to the public: (i) Safes by Public Auction Both land agencies, i.e. the Crown Lands & Survey Office and the New Territories Administration, are responsible for producing an auction and tender sales forecast for six months, April to September, and October to March, by the end of the preceding January and July respectively. These forecasts are approved by the Deputy Secretary for the Environment, who consults the Finance Branch as necessary, and are published before the end of February and August in each year. The land agencies report any divergencies from the forecast to the Deputy Secretary for the Environment. Exceptionally a site will be included in the sales forecast as a result of a private application but it is now unusual, in such circumstances, for the applicant to be required to pay a deposit as an undertaking to bid the starting price. Notification of all auction and tender sales are given in the Government Gazette and in the local press. (ii) Sales by Tender (a) General Policy Sales of Crown land other than by auction must be authorised by the Deputy Secretary for the Environment. Crown land is usually sold by public tender where: (1) the user is strictly defined and the sale is unlikely to attract general interest; (2) Government wishes to examine in advance detailed proposals for the development of a particular lot

9 with an unusual user restriction, to ensure that the best form of development is obtained and that the development meets with all Government requirements. The following classes of site are usually sold by tender: (1) Petrol filling stations. Sales of new petrol filling stations are normally done by tender restricted to holders of special importers licences. The tender conditions provide for royalty and royalty platforms. This normal policy has.been varied only in the case of four petrol filling stations in the Kwun Tong and Ngau Tau Kok districts required to be resumed to make way for Mass Transit Railway works or related highway improvement by mid-1976, so that the three new replacement sites in the area can be sold by tender restricted to the original operators to maintain continuity of supplies. (2) Kerosene stores in housing estates. (3) Profit-making school sites. (4) Cinema sites, which may be sold to include use as a cinema provided that: there is a demand for a cinema in the area; that the site is pre-eminent for use as a cinema; and that the use of the site for other purposes would inhibit the provision of a cinema in the area. (5) Multi-storey car parks to be developed by private enterprise. (6) Land having sea frontage. Sale of this land is usually by tender so that Government can ensure that the best use is made of this scarce commodity. (b) Letter 'A' and 'B' Tender System in the New Territories Where land is required within an area embraced by an approved layout plan, the policy is to give the lessee of private land the opportunity of surrendering his land voluntarily in exchange for the right to be granted Crown land at some future date. This right is contained in a Letter

10 called Letter 'A' or Letter 'B' issued by the Crown and accepted by the lessee. Letter 'A' is used where resumption proceedings have not commenced, but it is necessary to obtain early posession of a site. Letter 'B' is used where resumption has already been gazetted and gives the lessee the opportunity of voluntarily surrendering his land prior to resumption for the right of a future exchange. Registered owners of land exchange entitlements may tender for certain lots and those tenderers who offer the oldest dated land exchange entitlements will be the successful tenderers. Each applicant is required to submit a list of land exchange entitlements which he would be prepared to surrender for the grant of a site in lieu of cash compensation. These entitlements will then be converted to their "Area of Entitlements" on a foot for foot basis for "building land" and at a ratio of two sq. ft. for every five sq. ft. surrendered in the case of agricultural land. The "Area of Entitlement", for each offer, will be multiplied by the number of days it has been outstanding, that is the number of days between the date on which the offer of an exchange entitlement was made for the surrender of the land required by Government and the date on which applications are invited. The effect of this multiplication is to weigh the aggregate ages by the areas of entitlement with a view to determining the successful applicant. In the event of the applicant withdrawing his tender after the tenders have closed, the grant may be cancelled, but the deposit as required under the Conditions of the Application Notice will be forfeited. (c) Spec/a/ Industrial Projects Land usually in the more remote areas may be sold on application for restricted industrial use by tender in the following circumstances: (1) The industrial processes concerned should: be new to Hong Kong or represent a technological up-grading to a significant degree of an existing industrial process;

11 be at a generally higher level of technology than is current in Hong Kong's manufacturing industry; provide employment opportunities at a generally higher level of skill than currently obtained in Hong Kong industry, particularly for male workers; be land intensive and unable to be carried out in rnulti-storey industrial buildings; be those which could not otherwise be established or developed in Hong Kong. (2) Some preference would be given to projects that meet the requirements of (1) above and that also would produce and be prepared to sell on the local market a product needed by existing Hong Kong industry. STANDARD LEASE TERMS 9. Except for private recreational leases, pier leases, petrol filling stations and special grants for odd terms, the normal lease periods at present are: (i) urban area excluding New Kowloon 75 years renewable for a further 75 years in respect of sales by auction, and 75 years non-renewable in respect of grants. Extensions are always granted for the balance of the lease period of the parent lot. (ii) New Territories and New Kowloon 99 years less three days from 1st July The normal term of private recreational lease is 10 years, but consideration will be given to a longer term not exceeding 21 years in areas where substantial new expenditure cannot be amortised over a 10-year period. Pier leases for a period of 15 years with an option for renewal for a further 15 years are now rarely granted. Leases for pier purposes are now normally granted only to serve a parent lot and for a term co-terminous with the lease of the parent lot. It is preferable in such circumstances to grant them as an extension.

12 The lease of petrol filling station is 21 years non-renewable, with an option for the lessee to withdraw at 7 and 14 years after giving 6 months' notice. CROWN RENT 10. (i) New Lots Urban Area For new lots, including lots surrendered and regranted, petrol filling station, kerosene station and pier leases, the Crown Rent is $1,000 per annum per lot. For recreational leases, the Crown Rent is $100 per annum per lot. For new lots granted by in-situ exchange, the existing rents of the old lots rounded up to the next $100 where the new lot does not materially differ in area from the old lot, or to the next $1,000 where the new lot incorporates an extension, are chargeable. These rates have been applied since 1st September (ii) New Lots New Territories The following NT. Zone Crown Rent figures are adopted for new grants, sales and exchanges, etc.: (a) New Towns and town areas For lots under $300 per sq.ft. lotp.a. (b) Areas outside town bound- For lots from $1,000 aries but where development sq.ft. per lot is in accordance with a to sq.ft. p.a. defined layout plan or granted with special approval (c) Exchanges in areas of (a) For lots over $2,000 and (b) above sq.ft. per lot p.a. (d) Rural Areas Land granted for building purposes by private treaty and licences for Village-type House under the Small House Policy are charged at the rate of $20 per lot per annum. New agricultural leases are charged at the rate of $20 per lot per annum. For multidevelopment on one lot under the Small House Policy (i.e. where more than one house is erected) the Crown rent is calculated on the basis of $20 per house per annum. 8

13 (e) Recreation Leases $100 per lot per annum. (/) Pier Leases $500 per lot per annum. (Note Where the new lot does not differ materially from the lot surrendered (in an exchange) then the Crown rent for the old lot is adopted for the new lot rounded off to the nearest $100 per annum. The old rate also applies to extensions granted provided such extension areas do not exceed the limits permitted under the existing policy. The Crown rent to be charged for lots for Letter A/B tenders and other Letter A/B exchanges is assessed at the rate of $500 per acre per annum rounded off to the nearest $100 per annum). (iii) Old Lots, including statutorily renewed leases and boundary adjustments The original zone Crown rent will be used for any outstanding regrant cases where the lease expired prior to 1st September In the case of leases renewed under the Crown Leases Ordinance 1973, the new Crown rent is 3% of the rateable value of the lot. The zone Crown rent ceases with the expiry of the first term of the lease. PAYMENT OF PREMIUM 11. (i) Auctions Unless covered by a specific policy set out below, a sum fixed on a platform basis varying from $50,000 to $1,000,000 according to the estimate of sale price is payable as a deposit and in part payment of the premium at auction sales at the fall of the hammer, and the balance within one calendar month of the date of the auction. (ii) Auctions of Industrial Land Premium may be paid, at the option of the purchasers: (a) (b) as set out in paragraph 11 (i); or (in urban areas only) by 4 equal instalments interest-free, the first being payable at the fall of the hammer, the second instalment one year thereafter and the third and fourth instalments thereafter at six calendar month intervals;

14 (c) by a down payment of 10% of the sale price and the balance by 10 equal instalments calculated at 5% interest per annum, the first being payable together with down payment and the remainder on the nine subsequent anniversaries of the sale. (iii) Tenders for industrial land Premium may be paid, at the option of the purchasers: (a) by payment of the tendered fee in a lump sum together with the tender; or (b) by payment in accordance with paragraph 11 (ii) (c) above, a cheque for the down payment and the first instalment being included with the tender. (iv) Auctions of s/tes for residential, commercial I residential or commercial purposes, the estimated value of which is over $10 million Premium is payable at the option of the purchasers: (a) as in paragraph 11 (i); or (b) by ten equal instalments calculated at 10% interest, the first being payable at the fall of the hammer and the remainder on the nine subsequent anniversaries of the sale. This method of paying premium is also applicable to valuable commercial lots in the Central District. (v) Modifications of leases Premium for modification, with the exception of modifications covered under paragraphs 11 (vi) and (vii) below, is payable in a lump sum on demand or on execution of the Deed of Variation or Modification Letter. (vi) Modifications of leases for residential or commercial and residential purposes where premium exceeds $70 million Premium is payable by ten equal instalments at 10% interest, the first being payable on execution and the remainder on the nine subsequent anniversaries. (vii) Modifications of leases for industrial purposes where premium exceeds $7 million Premium is payable as in paragraph 11 (vi) above. 10

15 (viii) Tenders for commercial, commercial I residential and residential sites f the estimated value of which is over $70 million Premium is payable, at the option of the purchasers: (a) by a lump sum submitted with the tender documents; or (b) by ten equal instalments at 10% interest the first being payable by cheque together with the tender documents and the remainder on the nine subsequent anniversaries of the execution of conditions. (ix) Exchanges of Letter B Industrial land Premium is payable: (a) by a lump sum on execution of the exchange; or (b) by down payment of 10% of the premium at the date of execution of the new grant and by ten instalments at 5% interest the first being payable together with the down payment and the remainder on the nine subsequent anniversaries of the execution of the new grant. (x) Private treaty grants for industrial land Premium is payable at the option of the purchasers: (a) in a lump sum at the time of execution of the grant; or (b) by a down payment of 10% of the premium on execution and ten equal instalments at 10% interest per annum, the first being payable with the down payment and the remainder on the nine subsequent anniversaries. DEVELOPMENT OF THE LAND 12. To ensure that scarce land is put to the best possible use, the conditions of sales and grants normally prescribe the amount to be spent on building within a certain period (the "building covenant") and lay down certain engineering conditions and restrictions on the use to which the area can be put and the permitted extent of development. EXTENSIONS TO EXISTING LOTS 13. Exceptionally an extension to an existing lot may be granted by private treaty on payment of a premium, provided the extension area cannot be developed separately by itself or together with adjoining Crown land. In deciding whether to recommend such an extension, account is also taken of the interests of nearby lessees. 11

16 EXCHANGES AND ADJUSTMENT OF BOUNDARIES OF LOTS 14. (i) Urban Area (a) Agricultural Land Exchanges are not allowed. (b) Building Land Exchanges are only allowed, on a foot-for-foot basis and with any difference in value payable as premium, in the following circumstances: (1) for minor adjustments to lot boundaries to meet street-widening and similar public needs; (2) for regularising title; (3) where a modification is granted by way of Conditions of Exchange; and (4) where the circumstances warrant substantial exchange transactions. Although in practice they are usually straight-forward lot for lot deals, the authority for their approval rests with the Government Secretariat or the Governor-in-Council. (ii) New Territories Layout Areas (a) Agricultural Land Except in Tsuen Wan, Sha Tin and Tuen Mun, agricultural land may be exchanged for building land, at a ratio of 5 square feet surrendered to 2 square feet granted and with any difference in value payable as premium, provided it is in accordance with general development policy in the area and with the layout plan. Foot-for-foot in situ exchanges are not permitted because new lots must conform to the layout plan and because land is required for roads, government, institution and community uses and public open space. (/>) Building Land Exchanges are allowed on a foot-for-foot basis, with any difference in value payable as premium or refundable as compensation, provided they are in accordance with general development policy in the area and with the layout plan. 12

17 (i j i) Special A cquisition Areas (a) (b) (c) (d) The aims of the policy are: (1) to recover the title to land lying within areas which will be required by Government for future urban development schemes, to avoid expensive resumptions or the issue of exchange entitlements in lieu at the time the land is required for development; (2) to enable land-owners whose land is frozen, or whose land Government wishes to freeze because of future development plans, which would make the development of that land undesirable, to seek other opportunities for development. Special Acquisition Areas will be approved by the Secretary for the New Territories personally and the Secretary for the Environment, or the Deputy Secretary for the Environment (2) personally. Approval will be given either by exchange of correspondence or by recorded decisions in the New Territories Lands Meeting, Plans of Special Acquisition Areas will be signed by the Secretary for the New Territories and made available for public inspection in the relevant District Office and in New Territories Administration Headquarters. The rules for exchanges of land for Special Acquisition Areas are as follows: (1) Land offered for surrender must have an unencumbered title; (2) land will be exchanged on a foot-for-foot or valuefor-value basis but the area of land granted will not exceed the area surrendered; (3) land will only be granted in exchange in areas acceptable to the Secretary for the New Territories but these areas will not include an area covered by an outline zoning plan (approved or draft), or by an approved layout plan or designated or likely to be designated as a Special Acquisition Area; (4) upon applying, the applicant will be required to stipulate the land he wishes to be granted in exchange, 13

18 having established before applying that it is an area acceptable to the Secretary for the New Territories; the Secretary may, with the agreement of the Deputy Secretary for the Environment (2) limit the areas in which land from a particular Special Acquisition Area may be exchanged, e.g. South Lantao Land; (5) the applicant can apply for a new grant lot in either agricultural or building status; (6) a premium will be payable if the value of the new lot to be granted exceeds the value of the land to be surrendered; values will be determined having regard to the lease conditions of the respective lots; (7) the new lot will be granted subject to development and such other conditions as are deemed appropriate for the locality; (8) the applicant will be required to give vacant possession; (9) the applicant will be required to give a clear title to the site free of all encumbrances to the satisfaction of the Secretary for the New Territories. Adjustments of the boundaries of building lots to conform with approved layouts are also made from time to time, usually when redevelopment is to take place in connection with street widenings, town planning schemes, etc. MODIFICATION OF LEASE TERMS 15. Land in the urban area and certain areas in the New Territories exempted from Part II of the New Territories Ordinance, Cap. 97 are leased from the Crown in lots by way of Crown Leases or Conditions of Sale, Grant, Regrant, Extension, Exchange, etc., which may contain restrictions as to the use of the lot, or to the maximum possible development or redevelopment to be allowed thereon. Modifications of lease covenants or conditions will be required if a lessee wishes to use or develop a lot differently. Premium will normally be required representing the difference in value between the lot as formerly restricted and as modified. An administrative fee is also normally payable. Modification cases can be categorised as follows: (i) Deed of Variation; u

19 (ii) Modification Letter; (iii) Modification by way of Exchange; (iv) "No Objection" Letter; and (v) Temporary Waiver % concession for pre-war lots Owners of pre-war lots (granted or sold before 25th December 1941) in the urban area requesting modifications to permit more intensive development were required to pay only half the normal premium if their ^applications were received before 1st July This concession stands for the Mid-levels areas affected by the Temporary Restriction of Building Development (Pok Fu Lam and Mid-levels) Ordinance because of the moratorium on more intensive development in the Mid-levels District However, when the moratorium is lifted, it is not the intention to maintain the concession indefinitely thereafter. 17. Nil Premium (i) Modification of Industrial user restriction In the event of the Crown Lease covenants governing the use of a lot for industrial purposes and an application received for a modification to extend user to "industrial and/or godown", approval may be given subject to an administrative fee of $1,000 and nil premium, since this is in the nature of a technical modification. Furthermore, if in this type of case godown user had been included at the time of sale, no greater sale price would have been received. (ii) Modification as a result of conditions imposed by Town Planning Board Under Section 16 of the Town Planning Ordinance, the Town Planning Board may give consent to permit development in accordance with the notes attached to a plan, conditional on owners' entering into formal modifications of their leases restricting user to the approved development. The permissions to date have been to permit commercial user in residential zone. So far as the leases are concerned, there are two types of case. The first is where the effect of the modification (apart from the permission) is to enhance the value of the lot, e.g. modifying 15

20 Industrial to non-industrial, i.e. the lease is being made less restrictive and full premium must be paid. The other is where the effect of the modification is to introduce a restriction which was not there before, e.g. an unrestricted lease from open user to non-industrial, or to make the lease more restrictive. This would not lead to an enhancement in value and no premium should be charged. In either case, the standard administrative fee should be charged. EXPIRED LEASES 18. (i) Regrant of Non-renewable Leases The policy on the grant of new Crown leases on or before expiry of the original non-renewable 75-year term is broadly contained in the Government Announcement dated 18th October 1960 as amended up to February 1967, copies of which are available free of charge from the City District Offices and the Crown Lands 8- Survey Office, 18th floor, Murray Building, Hong Kong. A leaflet is also available describing the procedure for dealing with expiring non-renewable 75-year leases which are owned in undivided shares. Basically, it is the practice to grant new 75-year leases of these lots unless they are required for a public purpose, subject to the payment of a premium based on the full market value of the land (excluding buildings) at the time of application, or expiry of the lease and a re-assessed Crown Rent of $1,000 per annum. Sometimes development conditions are introduced to conform with present day requirements. (ii) Renewal of Renewable Leases Following the enactment of the New Territories (Renewable Crown Leases) Ordinance and the Crown Leases Ordinance 1973, most renewable 21, 75 and 99 year leases are now renewed statutorily. Those falling under the provisions of the Crown Leases Ordinance are renewed at an annual rental equal to 3% of the rateable value of the property. Those falling under the provisions of the New Territories (Renewable Crown Leases) Ordinance, which includes those Survey District lots in New Kowloon which are registered in a District Land Office, have been automatically renewed as from expiry of the first term in 1973 without change in the Crown rent or in the conditions of the lease. 16

21 RESUMPTION OF LEASED HAND 19. The Crown Lands Resumption Ordinance, as amended in 1974, gives powers of compulsory purchase of leased land for a public purpose. Where time allows, persons with a compensatable interest (usually owners or tenants) may be invited to negotiate the surrender of their interests by agreement for cash compensation. Where these negotiations fail, or there is insufficient time for negotiations to take place, the land is resumed under the Ordinance and statutory offers are made, or claims invited, as may be appropriate. Any dispute regarding the level of compensation may be referred by either party to the Lands Tribunal for impartial determination under the provisions of the Ordinance. In the New Territories, the Secretary for the New Territories may, in certain circumstances, offer a New Territories Exchange Entitlement (often referred to as a "Letter B") as an alternative to cash compensation. 20. Notwithstanding the right to claim statutory compensation, Government may also give ex gratia payments to persons affected to assist in their removal to alternative premises. APPORTIONMENT OF CROWN RENT AND PREMIUM 21. Under lease conditions, co-owners are jointly and severally liable for payment of Crown rent and premium. In some cases where there were very large numbers of co-owners, this had led to difficulties in collection and payment of Crown rent and instalments of premium. Under the Crown Rent and Premium (Apportionment) Ordinance the Land Officer is given discretion to apportion Crown rent and premium between co-owners if there is an agreement between them containing a basis of apportionment acceptable to the Land Officer or, if there is no such agreement, on the basis of the shares owned by the co-owners in the lot. Where apportionment is effected, each individual shareowner becomes responsible only for his apportioned share of the Crown rent and/or premium. RE-ENTRY ON LEASED LAND 22. The Crown Rights (Re-entry and Vesting Remedies) Ordinance empowers the Crown to re-enter on and take back leased lots. This is normally done where the lessee fails to pay the Crown rent or premium or a breach of the lease conditions has been committed. 17

22 TEMPORARY OCCUPATION OF CROWN LAND AND BUILDINGS 23. All that Is required in making an application for an area of Crown land, in Hong Kong or Kowloon, is a letter addressed to the Principal Government Land Agent, Crown Lands & Survey Office, Public Works Department Murray Building, Garden Road, Hong Kong, stating the approximate area of land required and the purpose for which it is to be used, together with a rough sketch plan of the site in question. For land in the New Territories the letter should be sent to the District Officer in whose district the land is situated. The letter should be addressed to the appropriate District Officer at the following addresses: District Officer, Islands District, International Building, 4th floor, 141 Des Voeux Road Central, Hong Kong. District Officer, Tsuen Wan District, Hongkong & Shanghai Bank Building, Tsuen Wan, New Territories. District Officer, Sai Kung District, San Po Kong Government Offices, 692 Prince Edward Road, 1st floor, San Po Kong, Kowloon. District Officer, Tai Po District, Tai Po Market, New Territories. District Officer, Yuen Long District, Yuen Long District Branch Office, New Territories. District Officer, Tuen Mun District, Top Court, Tak Ching Court, Tuen Mun, New Territories. 18

23 District Officer, Sha Tin District Sha Tin Government Offices, 2 Tung Lo Wan Hill, Ground floor, Sha Tin, New Territories. 24. (i) Crown Land Licences Permission may be obtained from the relevant lawful authority to occupy Crown land on a temporary licence (called a Crown Land Licence). These Licences are not transferable but are renewable annually at the discretion of the relevant lawful authority, and are only issued to enable temporary use of the land to be made pending its permanent development, or where sale by auction would not be appropriate at the time. The fees which are charged in respect of these Licences and the purposes for which they are issued are given in the Summary Offences (Licences and Fees) Regulations. With the heavy demand for land in all parts of Hong Kong for permanent development, it is continually necessary to cancel existing Licences. The issue of new Licences has accordingly been greatly reduced, (ii) Short Term Tenancies (iii) Where Crown land can be made available for temporary occupation, but with more surety of duration of tenure than for a Crown Land Licence, short term tenancies are granted. These continue from month to month or from year to year as the case may be, until determined by notice to quit. Tenancies of Crown Buildings In certain cases surplus Crown buildings are made available for temporary occupation and this is provided for by means of tenancies for various terms. The usual tenancy is a monthly one, but where the building will not be required for redevelopment, or for other government purposes for a longer period, a fixed term of several years may be given. (iv) General In view of the very temporary nature of the occupation granted by such permits or tenancies, the expenditure of large sums of money or the establishment of a long-term business is most inadvisable and is not encouraged by the Government. 19

24 PRIVATE LAND TRANSACTIONS 25. (i) General Many persons enter into private land transactions without taking sufficient care to check the conditions pertaining to the particular land in question, or whether the person with whom they are dealing has a proper legal title to the land. All leased land in Hong Kong is subject to various controls concerning the use to which it can be put; in some cases lease conditions prohibit the erection of any buildings whatsoever. Prospective purchasers are therefore strongly advised to check the title and lease conditions at the Land Office, Victoria, or at the appropriate District Land Office in the New Territories before entering into any transaction. It is usually best to obtain professional advice on such matters. In case of doubt as to the use to which land can be put, assistance should be sought from the staff of the Crown Lands & Survey Office, or the District Officer concerned. For those who are intending to buy a flat, it will be helpful to consult the pamphlet "A Simple Guide to Buying A Flat", obtainable free at all Public Enquiry Centres and City District Offices. (ii) Records Members of the public wishing to obtain information concerning leased land may consult the public records of title deeds kept in the Land Office, Victoria, at the Central Government Offices (West Wing), 11th floor; a small search fee is payable for each record produced for inspection. These records give details of all lots in Hong Kong, Kowloon and New Kowloon, with the exception of certain old agricultural lots and village building lots in New Kowloon. Records of these latter lots may be inspected at the District Land Office, Sai Kung, San Po Kong Government Offices, 1st floor, San Po Kong, Kowloon. Anyone wishing to obtain information concerning leased land in the New Territories should consult the public records of title deeds kept in the appropriate District Land Office. All deeds and other instruments affecting land are required to be registered in the Land Office, Victoria, or in the appropriate District Land Office in the New Territories. 20

25 MAIN ORDINANCES AFFECTING LAND 26. The sale and disposal of land is ordered by the Governor under the authority of the Letters Patent and the conditions that may be imposed are not limited by statute. The following are some of the ordinances which govern the development purchase, resumption, use, grant or transfer of land in Hong Kong or which otherwise affect the letting and management of any building or premises standing on land: Buildings Ordinance (Chapter 123) Crown Lands Resumption Ordinance (Chapter 124) Crown Rent and Premium (Apportionment) Ordinance (Chapter 125) Crown Rights (Re-entry and Vesting Remedies) Ordinance (Chapter 126) Demolished Buildings (Re-development of Sites) Ordinance (Chapter 337) Foreshores and Sea Bed Ordinance (Chapter 127) Land Registration Ordinance (Chapter 128) Landlord and Tenant (Consolidation) Ordinance (Chapter 7) Multi-Storey Buildings (Owners Incorporation) Ordinance (Chapter 344) New Territories Ordinance (Chapter 97) New Territories (Renewable Crown Leases) Ordinance (Chapter 152) Stamp Ordinance (Chapter 117) Streets (Alteration) Ordinance (Chapter 130) Summary Offences Ordinance (Chapter 228) Town Planning Ordinance (Chapter 131) Buildings Ordinance (Application to the New Territories) Ordinance (Chapter 322) Crown Land Ordinance (Chapter 28) 21

26 Crown Leases Ordinance (Chapter 40) Lands Tribunal Ordinance (Chapter 17) Mass Transit Railway (Land Resumption and Related Provisions) Ordinance (Chapter 276) 27. Copies of these ordinances may be purchased from the Government Publications Centre, General Post Office Building, Ground Floor, Connaught Place, Hong Kong. 22

27 [HKP] H7 X017415SQ XD17415EO Hong Kong< Office. j. j.i r 1077! Crown lands and Survey (TJ Date Due S37?70< ' - ~

28