DEMOLISHED BUILDINGS (RE-DEVELOPMENT OF SITES) ORDINANCE

DEMOLISHED BUILDINGS (RE-DEVELOPMENT OF SITES) ORDINANCE

LAWS OF HONG KONG

DEMOLISHED BUILDINGS (RE-DEVELOPMENT
OF SITES) ORDINANCE

CHAPTER 337





CHAPTER 337
DEMOLISHED BUILDINGS (RE-DEVELOPMENT OF SITES)

ORDINANCE

ARRANGEMENT OF SECTIONS

Section ..................Page

1. Short title ............................... ... ... . ... ... ... 2
2. Interpretation............................. ... ... . ... ... ... ... 2

3. Premises made subject to Ordinance ..... ... ... ... ... ... ... ... ... 3
4. Order for re-development .................. ... ... ... ... ... 3

5. Extinguishment of rights of protected tenants and compensation therefor ... 4

6. Assessment of incremental value ........ ... ... . ... ... ... 4

7. Claims for compensation ................... ... ... ... ... ... ... ... 4

8. Reduction of awards in excess of incremental value . ... ... ... ... 5

9. Payment of compensation .................... ... ... ... ... ... ... ... 5
10................Enforcement of awards .... ... ... ... ... ... .. ... ... ... ... 6

11...........................Provisions where property, resumed by the Crown ... ... ... ... ... ... 6

12....................Charge for compensation awarded ... ... ... ... ... ... ... ... ... 7

13.........[Repealed] ........................ ... ... ... ... ... ... ... ... ... 7

14...........................Determination of appeals under sections 4 and 6 ... . ... ... ... 7

15..................Service of notices and orders ... ... ... ... ... . ... ... ... 7

16................................Leases of business premises for not less than 5 years . ... ... ... ... 8
17................................Saving of rights of Crown and powers of Building Authority ... ... ... ... 8





CHAPTER 337

DEMOLISHED BUILDINGS (RE-DEVELOPMENT
OF SITES)

To make provision concerning the re-development of sites of certain
demolished buildings, and the compensation of certain tenants for
loss of possession, and for purposes connected with the matters
aforesaid.

[1 January 1963.]

1. This Ordinance may be cited as the Demolished Buildings (Re-
development of Sites) Ordinance.

2. (1) In this Ordinance, unless the context otherwise requires

'Building Authority' includes any person authorized to exercise the
powers of the Building Authority under the Buildings Ordinance;

'Director' means the Director of Building Development, (Amended,
L.N. 76/82)

'final award' means the amount awarded under section 7 or, if the
amount is reduced under section 8, the amount as so reduced;
(Replaced, 76 of 1981, s. 60)

'Land Office' means the Land Office established under the Land
Registration Ordinance, and any New Territories Land Office
approved under the New Territories Ordinance;

'lease' includes an agreement for a lease and a tenancy agreement;

'owner' does not include a mortgagee;

'protected building' means a building to which Part I of the Landlord
and Tenant (Consolidation) Ordinance applies or at the relevant
date applied, and it also means a building to any part of which that
Part applies or so applied;

'protected tenant' means a tenant or sub-tenant at the relevant date of
a protected building or part thereof but only where and to the
extent Part I of the Landlord and Tenant (Consolidation) Ordinance
applies or at the relevant date applied to the subjectmatter of his
tenancy;

'Ire-development notice' means a notice served by the Director under
section 3;

'Ire-development order' means an order made by the Director under
section 4;





'the relevant date' in relation to any protected building means-

(a)where an order has been made under section 26 of the
Buildings Ordinance requiring the demolition of the building,
the date of service of the order; or

(b)where a fire or other calamity has occurred in consequence
whereof the building has been demolished or certified by the
Building Authority as being so dangerous as to require
demolition, the date of the fire or calamity.'

(2) The duties imposed on and the powers granted to the
Director under this Ordinance may be carried out and exercised by
any officer of the Building Development Department authorized by
the Director either generally or particularly and subject to his
instructions. (Amended, L.N. 76/82)

3. (1) Where under section 26 of the Buildings Ordinance the
Building Authority serves an order in respect of a protected building
requiring the demolition thereof, or where the Building Authority
certifies that, as a result of fire or other calamity occurring after the
commencement of this Ordinance, a protected building has been
demolished or has in his opinion been rendered so dangerous as to
require demolition, the Director may, within 3 months of the service of
the order or the occurrence of the fire or other calamity, serve notice in
writing on the owner of the property comprising such building declaring
that the property has become subject to the provisions of this
Ordinance.

(2) The Director shall cause a copy of such notice to be served on
any person appearing from the Land Office registers to have an interest
in such property, and such notice shall be registered in the Land Office
by a memorial thereof signed by the Director.

4. (1) Where a re-development notice has been served in respect of
any property, the Director may, within 3 months of the date of service
thereof, by order in writing served on the owner require the re-
development of the site of the property, within such time as he may
prescribe, by the replacement of the building thereon or formerly
thereon with a new, sound and substantial building, completed fit for
occupation, conforming to the 'covenants, conditions and stipulations
of the Crown lease, and, subject to the provisions of the Buildings
Ordinance, of no less gross floor area than the building replaced. The
owner may, within 21 days of the date of service of such order or such
extended time as the Lands Tribunal may allow, appeal to the Lands
Tribunal against such order. (Amended, 62 of 1974, s. 16 and 73of 1984,s. 2)

(2) Any order served under subsection (1) shall within one month
of such service be registered in the Land Office by a memorial thereof
signed by the Director, and a copy of such order shall be served also on
any person appearing from the Land Office registers to have any
interest in such property.





(3) Upon the expiry of the time limited for appeal against an order
made under subsection (1), or, in the event of an appeal, where such
order is confirmed or another order is substituted therefor, the
requirements made in such order or substituted order shall be deemed to
be covenants, conditions or stipulations in the Crown lease of the
property to which the order relates, and thereafter failure to comply with
any such requirement shall entitle the Crown to re-enter upon the
property under and in accordance with the provisions of the Crown
Rights (Re-entry and Vesting Remedies) Ordinance.

5. Where a re-development notice has been served in respect of
any property

(a)Part I of the Landlord and Tenant (Consolidation) Ordinance
shall cease to apply to any part of any building comprised in
the property, and the protected tenants shall cease to have
any rights of occupation or possession in any such building;
and

(b)every protected tenant shall be entitled to compensation in
accordance with the provisions of this Ordinance from the
person who was the owner of such property immediately
before such notice was served.

6. (1) Where a re-development notice has been served in respect of
any property, the Director shall assess the incremental value thereof,
which shall be the amount by which the market value of the property
with vacant possession after the service of such notice exceeds what
was the market value of the property in occupation prior to the service
by the Building Authority of the order for demolition or prior to the fire
or other calamity occasioning the issue under section 3 of the certificate
of the Building Authority, as the case may be.

(2) The Director shall give notice of such assessment to the owner
of the property and to any person appearing from the Land Office
registers to have a mortgage on the property, and in addition he shall
communicate it to any other person, not being a tenant, who makes
application in writing to him and who he considers has good grounds
for requiring such information.

(3) The owner or any mortgagee so notified may, within 14 days of
such notification, appeal to the Lands Tribunal against the assessment.
(Amended, 62 of 1974, s. 16)

7. (1) Where a re-development notice has been served in respect of
any property, there shall be published in the Gazette and (with a
translation in Chinese) affixed to the property, a copy of the notice
together with, save where the Director has found that no incremental
value exists, a statement to the effect that protected tenants may apply
in accordance with the provisions of subsection (2) to the Lands
Tribunal to determine the amount of compensation

payable to them.(Amended, 76 of 1981, s. 60)





(2) Within 3 weeks of the date of publication of the copy of the re-
development notice in the Gazette, or such extended time as the Chief
Justice may in his discretion allow, any protected tenant may, save
where he and the owner of the property in respect of which the re-
development notice has been served have entered into an agreement in
writing for the payment of compensation or where the Director has
found that no incremental value exists, apply to the Lands Tribunal to
determine the amount of compensation to which he is entitled under
this Ordinance. (Amended, 76 of 1981, s. 60)

(3) [Deleted, 76 of 1981, s. 60]

(4) [Deleted, 58 of 1975, s. 2]

(5)-(10) [Deleted, 76 of 1981, s. 60]

(11) For the purposes of this section and of sections 8 and 9,
'owner' shall be deemed to include a mortgagee.

8. (1) If the sum of the awards made by the Lands Tribunal,
together with any amounts agreed to be paid to other protected tenants
by the owner by way of compensation exceeds the assessment of the
incremental value, the owner may, within 14 days of the notification of
such awards, apply to the Lands Tribunal for the reduction of the
awards made. (Amended, 76 of 1981, s. 60)

(2) On an application being made under subsection (1) the Lands
Tribunal shall proceed to determine the amount of compensation which
it would have awarded to every protected tenant with whom the owner
has entered into an agreement in writing for the payment of
compensation had the tenant applied for the appointment of the Lands
Tribunal under section 7(2), and if the total (hereinafter referred to as the
said total) of the amounts which it would have so awarded and of the
amounts which it has awarded or such amounts as may have been
substituted therefor on any appeal, exceeds the said assessment, the
Lands Tribunal shall reduce the amounts which it has awarded to
amounts which bear the same proportion to the amounts awarded as the
said assessment does to the said total. (Amended, 76 of 1981, s.
60)

(3) The reduced awards shall be notified to the tenants in respect
of whom they were made, to the owner and to the Director.

9. (1) The final awards shall be published in the Gazette, and shall
be registered in the Land Office by a memorial thereof signed by the
Director. Such awards shall be payable within 3 weeks of the
notification thereof.

(2) Where any protected tenant who has been awarded
compensation in accordance with section 7 does not, within the period
limited by subsection (1), demand payment of the compensation
awarded to him, the owner may deposit with the Treasury the sum
awarded together with any interest accrued due thereon under
subsection (5).





(3) Any such sum so deposited may, within a period of 5 years from
the date of such deposit, be claimed by the person entitled. thereto and,
upon any such claim being substantiated, shall be paid to the person so
entitled.

(4) At the expiration of the said period of 5 years, any such sum
remaining unpaid shall be transferred to the general revenue of the
Colony. (Aniended, 71 of 1971, s. 3)

(5) In the event of any sum awarded as compensation not being
paid within the period limited by subsection (1) or deposited with the
Treasury in accordance with subsection (2) within 1 week thereafter, the
sum awarded shall bear interest at the rate of 10 per cent per annum
from the expiry of the period within which it should have been paid in
accordance with subsection (1) until payment or deposit under
subsection (2). (Aniended, 76 of 1981, s. 60)

10. (1) The final awards may be enforced against the person liable
to pay such compensation in the same manner as ajudgment of the
Supreme Court.

(2) Where-

(a)a re-development notice has been served in respect of any
property, and

(b)any person liable to pay, or whose interest in the property is
or may be made subject to a charge for, compensation under
this Ordinance has applied for permission to carry out building
works, other than demolition, in relation to that property,

the Building Authority may refuse to grant such permission until he is
satisfied that all sums due to the protected tenants by way of
compensation under this Ordinance (whether under an award or
under.an agreement) of which the Government has notice have been
paid to the persons entitled thereto or have been deposited with the
Treasury under section 9(2).

11. (1) Where a re-development notice has been served in respect
of any property and the Crown has resumed the same either in
accordance with the terms of the Crown lease under which the property
is held or under the provisions of the Crown Lands Resumption
Ordinance, there shall be deducted from the compensation payable by
the Crown to the owner in respect of the resumption all sums due to the
protected tenants by way of compensation under this Ordinance
(whether under an award or under an agreement) of which the
Government has notice.

(2) Any such sum deducted shall be paid by the Government to the
person entitled thereto or. if such person cannot be found. shall be
deposited with the Treasury.

(3) Any such sum so deposited may, within a period of 5 years
from the date of such deposit, be claimed by the person entitled





thereto, and, upon any such claim being substantiated, shall be paid to
the person so entitled.

(4) At the expiration of the said period of 5 years, any such sum
remaining unpaid shall be transferred to the general revenue of the
Colony. (Amended, 71 of 1971, s. 3)

(5) Where any sum is deducted under subsection (1), no interest
shall accrue thereon after the date of deduction.

12. (1) Upon the registration in the Land Office under section 9(1)
of a final award, the amount of such award and any interest accrued or
thereafter accruing thereon shall, until the compensation and interest
are paid, constitute a charge on the property in respect of which the
compensation has been awarded in favour of The Colonial Treasurer
Incorporated in trust for the person or persons entitled to the
compensation and interest. (Amended, L.N. 63175)

(2) Without prejudice to the priority of instruments executed prior
to the commencement of this Ordinance a charge created by subsection
(1) shall have priority over all other instruments affecting the property
against which the charge is registered executed after such
commencement.

(3) For the purpose of enforcing any such charge, The Colonial
Treasurer Incorporated shall have all the same powers and remedies as
are, under the Law of Property Act 1925, and otherwise, available in
England to a mortgagee by deed having powers of sale and lease, of
accepting surrenders of leases, and of appointing a receiver, and the
provisions of the said Act which apply where a

mortgagee exercises any such power or avails himself of any such
remedy shall apply where The Colonial Treasurer Incorporated
exercises any such power or avails himself of any such remedy.

13. [Repealed, 72 of 1971, s. 3]

14. (1) In determining an appeal under section 4 or section 6 the
Lands Tribunal may confirm or set aside the re-development order or the
incremental value and may substitute therefor any other re-development
order or incremental value which it thinks proper and which could have
been made by the Director.

(2) The decision of the Lands 'Tribunal shall set out the matters for
which allowance is made in making its determination and such decision
shall be final.

(Replaced, 62 of 1974, s. 16)

15. Service of any notice, communication or order which may be
given or served under the provisions of this Ordinance may be effected

(a) personally; or

(b)by registered post addressed to the last known place of
business or residence of the person to be served; or





(c)by leaving the same with an adult occupier of the premises to
which the notice, communication or order relates; or

(d)by posting the same upon a conspicuous part of such
premises:

Provided that in addition to or in substitution for any such method
of service the publication in the Ga:ette of such notice or order together
with the available particulars of the person to whom it is addressed shall
be deemed to be good service.

16. Where a lease of business premises for a term of not less than 5
years contains a provision for its sooner determination in the event of
the service of a re-development notice in respect of the property
comprising the premises, the lease shall, notwithstanding such
provision, be deemed, for the purposes of section 3(1)(e) of the
Landlord and Tenant (Consolidation)-Ordinance, to be a lease for a term
of not less than 5 years.

17. Nothing in this Ordinance shall be deemed to take away or
affect

(a)any rights of the Crown or any remedies of the-Crown for the
enforcement of. or otherwise in respect of, such rights; or

(b)any powers of the Building Authority under the Buildings
Ordinance.
Originally 2 of 1963. 24 of 1963. 71 of 1971. 72 of 1971. 62 of 1974. L.N. 63/75. 58 of 1975. 76 of 1981. L.N. 76/82. 73 of 1984. Short title. Interpretation. (Cap. 123.) (Cap. 128.) (Cap. 97.) (Cap. 7.) (Cap. 123.) Premises made subject to Ordinance. (Cap. 123.) Order for re-development. (Cap. 123.) (Cap. 126.) Extinguishment of rights of protected tenants and compensation therefor. (Cap. 7.) Assessment of incremental value. Claims for compensation. Reduction of awards in excess of incremental value. Payment of compensation. Enforcement of awards. Provisions where property resumed by the Crown. (Cap. 124.) Charge for compensation awarded. (1925 c. 20.) Determination of appeals under sections 4 and 6. Service of notices and orders. Leases of business premises for not less than 5 years. (Cap. 7.) Saving of rights of Crown and powers of Building Authority. (Cap. 123.)

Originally 2 of 1963. 24 of 1963. 71 of 1971. 72 of 1971. 62 of 1974. L.N. 63/75. 58 of 1975. 76 of 1981. L.N. 76/82. 73 of 1984. Short title. Interpretation. (Cap. 123.) (Cap. 128.) (Cap. 97.) (Cap. 7.) (Cap. 123.) Premises made subject to Ordinance. (Cap. 123.) Order for re-development. (Cap. 123.) (Cap. 126.) Extinguishment of rights of protected tenants and compensation therefor. (Cap. 7.) Assessment of incremental value. Claims for compensation. Reduction of awards in excess of incremental value. Payment of compensation. Enforcement of awards. Provisions where property resumed by the Crown. (Cap. 124.) Charge for compensation awarded. (1925 c. 20.) Determination of appeals under sections 4 and 6. Service of notices and orders. Leases of business premises for not less than 5 years. (Cap. 7.) Saving of rights of Crown and powers of Building Authority. (Cap. 123.)

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