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HOW TO RECEIVE COMPENSATION

FOR PRIVATE LAND RESUMED

IN THE NEW TERRITORIES BY THE GOVERNMENT

(Revised Version)– May 2006

如何領取

政府收回新界私人土地的補償

(修訂本) – 二OO六年五月

This pamphlet briefly explains the procedures involved in compensation payment for private land resumed in the New Territories so as to assist landowners to get compensation as soon as possible.
　

Government may acquire private land by resumption for public purposes such as a road scheme, a flood protection, a drainage improvement project, a new market, an open space, a fire station, a public housing development or any item in the Public Works Programme. Resumption proceedings may be instituted mainly under the provisions of :-

When a resumption is ordered, a Government Notice will be published in the Gazette. Thereafter, a copy of the Government Notice will be affixed on or near every lot affected. Under normal circumstances, the Government will give a period of notice of THREE MONTHS from the date upon which the notice was affixed on or near the land and upon expiry of the period specified in the notice, the land will revert to the Government. If there is an urgency to acquire the land, a shorter period may be given. Upon reversion, the land becomes Government land and all kinds of legal interests are extinguished. Henceforth, the former owner is not entitled to collect rents or fees of any kind from his tenant or the occupant.
　

After the affixing of the Government Notice on the land, a standard offer letter for compensation will be sent to you as the registered owner of the land or person who has an interest in the land. The letter offers you a sum of money by way of compensation for the land to be resumed. This is subject to the conditions contained in the letter, one of which is the proof of title to the satisfaction of Government. If you accept the offer, you should complete the Acceptance Letter or the reply slip attached to the offer letter and return it to the Issuing Officer, usually the relevant District Lands Officer (DLO) or in the case of resumption in connection with the construction of railways and related facilities, the Chief Estate Surveyor/Railway Development (CES/RD), by using the pre-printed Government envelope provided as early as possible. To avoid delay in receiving your compensation, you should ensure that it is posted as soon as possible with the necessary title deeds and documents listed in the schedule attached to the offer letter.
　

When land is resumed or otherwise adversely affected by the actions of Government, the Ordinance under which the legal interest is extinguished or affected provides for the payment of compensation. The compensatable interest is limited by the provisions of the Ordinances, some of which are listed in paragraph 2 hereof. Statutory compensation is assessed on an open market value basis. However, it is the general Government practice to make compensation offers based upon ex-gratia rates in full and final settlement of all claims arising out of the provisions of the Ordinance. In this connection, agricultural land resumed in the New Territories will usually be offered compensation according to the ex-gratia compensation rates shown on the Zonal Plan for Calculation of Compensation Rates which may be inspected at all the DLOs and owners of building land will usually be offered statutory compensation based on professional valuation plus ex-gratia compensation at the standard zonal rate. The rate applicable to a resumption is that prevailing as at the date of reversion. The basic rate is revised half-yearly on 1st April and 1st October.
　

If you do not accept the amount of compensation offered, you may make a claim for compensation in writing to the DLO or CES/RD stating the amount of your claim with evidence to support your claim. This means that you will have to follow the requirements laid down in the relevant Ordinance for making a claim. A claim for compensation usually includes the nature of your estate or interest in the land and the amount which you seek to recover. In the event that your claim is not agreed, it may be referred by you or by the Government to the Lands Tribunal for the amount of compensation to be determined. The figure awarded will then be binding on both you and the Government. In the event of a claim being referred to the Lands Tribunal, the offer of ex-gratia compensation will be immediately withdrawn and a re-assessment on a market value basis made. Once an award is made by the Lands Tribunal, irrespective of whether it is higher or lower than the original ex-gratia offer, it is the maximum compensation payable.
　

7. Should you wish to make such a claim, you are strongly advised to seek independent professional advice to avoid unnecessary delays.
　

8. Residual portion of a lot rendered incapable of reasonable beneficial use by resumption

According to the existing policy, Government is obliged to resume the minimum land required for a public project. As a result, there may be situations where after a portion of a private lot has been resumed by Government, the remaining portion of that lot will be rendered incapable of reasonable beneficial use, either by reason of its small size or odd shape. If you consider it is a justifiable case, you may apply to the DLO or CES/RD requesting the residual area be resumed as well. Application of this kind will be considered on individual merits.
　

Before compensation for the resumption of land is released to you, you are required to prove that you have a good title to the land being resumed. You are requested to submit all the title deeds and documents listed in the schedule attached to the offer letter to the District Legal Advisory and Conveyancing Office. At the same time you should also produce a copy of your Identity Card or other proof of identity, such as a passport.
　

If you do not have any of the documents mentioned in the schedule attached to the offer letter, you may be required to make a statutory declaration at the DLO or a firm of solicitor to explain the circumstances of any loss or non-production of the title deeds or documents. The procedure is quite simple and will be explained to you, if necessary, by the staff of the District Legal Advisory and Conveyancing Office. Some samples of statutory declarations are available at the DLOs and District Offices.
　

After the title documents have been checked and title to the lot is found to be in order and the statutory declaration, if required, is acceptable to Government, you are required to sign an “Agreement as to Compensation and Indemnity” and other necessary documents. An appointment will be made, usually on a date on or after the date of reversion, for you to return in person to the Railway Development Section or the DLO to sign the Agreement and at the same time to collect the cheque. You should again take with you your Identity Card or other proof of identity, such as a passport.
　

12. Should you be unable to attend for any reason, you may by way of a valid power of attorney authorize a person to act on your behalf. In such cases the procedure may take a little longer. You should let the Issuing Officer know as soon as possible so that any problems could be resolved.
　

In case you are aware of any landowner who has not received this notification because he has moved overseas or to somewhere else, please advise him or the Issuing Officer so that the Issuing Officer can be in contact with the landowner concerned.
　

If you do not understand this procedure, or if you have any queries concerning it, you can obtain further advice from the relevant DLO or CES/RD. Our staff members are happy to provide any necessary assistance.
　