(b)
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AUGUSTINE S. K. CHUNG ROOM 1115, HANG LUNG CENTRE, 11th FLOOR, PATERSON STREET,
HONG KONG. TEL: 5-771862-3
(i) When any property is resumed, the Lands
Tribunal in determining the compensation to be paid and in estimating the value of land resumed and of any building thereon, has to observe the principles of assessment set down by Section 11 and 12 of the Crown Lands Resumption
Ordinance.
(ii)
(iii)
Subject to certain provisions mentioned in
the law, the value of the land resumed shall
be taken to be the amount which the land if sold
in the open market might be expected to realize. (The relevant Ordinance does not mention when
the land is considered to be sold for the
purpose of assessing the value of the land
resumed, it is to be understood to be the date of the reversion when the ownership is reverted to the Crown).
After assessment of the value of compensation by the Lands Tribunal, the Crown has a further
3 months' period to pay the compensation so
awarded to the claimant. In other words, it can
be more than 3 months after the reversion date before the claimant will receive payment of the compensation for his property resumed.
However, while the claimant may receive compensation for the loss of his property according to the value in the open market at the reversion date, that value may become unrealistic at the date of payment if the value of land in the open market has on that day increased to a higher level. Although the law makes provision for the payment of interest to compensate such possible loss, yet the interest may not be sufficient to compensate
to be Cont'd/P.5