XN000022-1996-05-15 — Page 31

(a)

(b)

(c)

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15

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whether the pre-sale of uncompleted small house is illegal;

whether it will consider legalising the sale and purchase of uncompleted small houses and monitoring such activities; if not, whether it will consider introducing measures to prevent prospective buyers from being cheated; and

which government department is responsible for controlling the sale and purchase of uncompleted small houses?

Answer:

Mr President,

Under the small house policy, an indigenous male villager over the age of 18 is allowed to apply either for a building licence at nil premium to build a small house in his own land or for the grant, at a concessionary premium of two-thirds of the full market value, of a site on Government land for the same purpose.

All small house grants made under the small house policy are subject to restrictions on alienation:

(I)

(ii)

(iii)

for grants of government sites within village environs of recognised villages, the restriction is perpetual. Lands Department will only consider applications for modifying the restriction after the development of the small house has been completed and a certificate of compliance has been obtained. Any approval given will also be subject to the payment of a premium and an administration fee, and the execution of a modification document;

for grants of government sites in Village Expansion Areas, the restriction is perpetual. The Lands Department would only consider modifying the restriction on alienation after the lapse of three years following the issue of the certificate of compliance; and

for grants in respect of land owned by the villagers, the period of restriction is five years. The conditions for modifying the restriction on alienation are the same as those in category (i).

Unless and until the above restrictions are no longer in force, any other form of disposal of any interests in the small house development would amount to a breach of the lease conditions.