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The following is issued on behalf of the Housing Authority:
People interested in renting Home Ownership Scheme (HOS) flats are reminded to check beforehand if the owner of the HOS has paid premium. If a tenant knowingly rents an HOS flat on which premium has not been paid, they may be prosecuted under the Housing Ordinance.
"On November 3, Kwun Tong Magistrates' Court convicted both the owner of an HOS flat and the tenant and fined them $6,000 and $5,000 respectively," a spokesman for the Housing Department said today (November 8).
The HOS owner purchased a flat in Kwong Ming Court, Tseung Kwan O, in 1998. Investigation by the Housing Department revealed that the owner had entered into a tenancy agreement with the tenant in October 2007 for two years at the monthly rent of $6,500 but no consent had been granted by the Housing Authority and no premium had been paid. The tenant was aware that the HOS owner had not paid the premium.
This is an offence under Section 27A of the Housing Ordinance and could mean a maximum penalty of a $500,000 fine and imprisonment for one year. The tenancy agreement is also void under Section 17B of the ordinance," the spokesman said.
It is the first case in which a tenant of an HOS flat had been prosecuted by the Housing Department for entering a tenancy agreement with an owner who alienated the HOS flat without paying premium.
In addition to this case, so far this year 10 HOS owners and one purchaser in eight cases have been prosecuted successfully under the Housing Ordinance for alienating HOS flats without paying premium.
Under the Schedule of the Housing Ordinance, the purchasers of the land sold under Section 17A by the Housing Authority shall not at any time alienate, or purport to alienate, or enter into any agreement to alienate the land unless premium has been paid to the authority.
Owners of HOS flats who have paid premium will receive a letter from the Housing Department stating that the premium had been paid. Potential tenants should always ask to see the letter.
Ends/Sunday, November 8, 2009
Issued at HKT 16:46
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