C. Mediation for compulsory sale cases
1. Practice Direction: Mediation for Compulsory Sale Cases Under the Land (Compulsory Sale for Redevelopment) Ordinance (Cap. 545)
A Practice Direction (LTPD: CS No. 1/2011) has been issued to cover all compulsory sale cases under the Land (Compulsory Sale for Redevelopment) Ordinance (Cap. 545 of the Laws of Hong Kong).
Under the Direction, parties in a compulsory sale case should attempt mediation to reach a settlement of any dispute arising out of the application for compulsory sale before their case is heard by the Lands Tribunal.
If the applicant (i.e. the majority owner) in a compulsory sale case unreasonably fails or refuses to attempt mediation with the minority owner,
- the majority owner may not be considered by the Lands Tribunal as having taken all the reasonable steps to acquire all undivided shares of the lot; and
- the Lands Tribunal is entitled to take into account such failure or refusal in determining whether an order for sale should be granted.
2. Support Service Centre for Minority Owners under Compulsory Sale (SMOCS)
The “Support Service Centre for Minority Owners under Compulsory Sale” (SMOCS) was set up by the “Urban Renewal Authority” (URA).
But its operation is independent of the URA. It is only accountable to the “Dedicated Office of Support Services for Minority Owners under Compulsory Sale” (SOSS) of the “Development Bureau” (DEVB).
SMOCS will arrange free information sessions on mediation for the minority owners affected by compulsory sale applications. The information seesions are provided by the Integrated Mediation Office of the Hong Kong Judiciary. The content is about how mediation facilitates minority owners and the applicant of the compulsory sale applications to resolve their disputes. Please be reminded that the information session is neither a mediation session nor a counselling service.
Furthermore, SMOCS will provide assistance in arranging mediation meetings, including provision of the referral list of mediators. Regardless of whether there is a settlement after the mediation meeting is completed, each property affected by a compulsory sale application will be granted a maximum amount of $4,500. Please note that the amount of subsidy is determinded on a per property basis.
If the affected minority owners are receiving “Comprehensive Social Security Assistance” (CSSA), “Old Age Allowance” (OAA) / “Old Age Living Allowance” (OALA) or “Disability Allowance” (DA), a maximum of $9,000 fee subsidy will be provided upon completion of the mediation meeting.
The affected minority owners need to submit a completed application form in the prescribed format with the required supporting documents to the SMOCS.
At the mediation stage, SMOCS will freely commission property valuation firms and produce indepent valuation reports on subject property and lot. If the minority owners concerned want to receive a copy of the valuation report, they are only required to pay a concessionary fee of $4,500 per property.
Minority owners who are recipients of CSSA, OAA / OALA or DA can obtain the reports free of charge.
For more information, please visit the website of the SMOCS.
If you have any enquiries and feedback, please contact SMOCS:
- Service Hours: Monday to Friday, 9:00am to 1:00pm & 2:00pm to 6:00pm (Closed on Saturdays, Sundays and Public Holidays)
- Address: Unit D, 6/F, 777-783 Yu Chau West Street, Kowloon [About 10-minute walk from exit B1 of Lai Chi Kok MTR station]
(Please make an appointment before visiting the SMOCS.) - Hotline: (852) 2156 8050
- Fax: (852) 2156 8055
- E-mail: inquiry@smocs.hk
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