**********************************************************
In response to the view that there may be a loophole in the "Hong Kong Property for Hong Kong People" (HKPHKP) measure allowing purchasers who are not Hong Kong Permanent Residents (HKPRs) to hold units through trusts, the Lands Department today (March 20) made the following statement:
"The implementation arrangements for the HKPHKP measure will prevent and deal with such a situation. Under the arrangements, the leases for the two sites will specify that purchasers (the developer and each subsequent owner) will have to apply for prior written consent of the Director of Lands before alienation of the residential units built thereon throughout a 30-year period commencing from the date of the relevant land grants. Apart from the eligibility criteria, the conditions in the consent to sale also require:
- the purchaser to purchase the property, and take up the assignment of the property, in his own name and as the beneficial owner of the property;
- the purchaser to make a statutory declaration that he/she is the beneficial owner of the property;
- the statutory declaration should be registered with the Land Registry before assignment.
Purchasers wilfully contravening the requirements of the consent and making a false statutory declaration in that regard will have to bear the consequences, including:
- Under section 36 of the Crimes Ordinance (Cap. 200), anyone who knowingly and wilfully makes a statement false in a statutory declaration shall be guilty of an offence and shall be liable on conviction upon indictment to imprisonment for two years and to a fine.
- In addition, the alienation of the flat in connection with the false statutory declaration made will be considered as a transaction that breaches the land lease conditions. The Government has the right to take lease enforcement action including re-entry action in respect of the flat.
Ends/Wednesday, March 20, 2013
Issued at HKT 21:00
NNNN