Cap. 130 - Land Acquisition (Possessory Title) Ordinance

To provide for the acquisition of land, held under a possessory title by virtue of the Limitation Ordinance (Cap. 347), required for public purposes, the compensation for such acquisition, and for matters incidental thereto and connected therewith. [15 July 1983](Format changes—E.R. 6 of 2019) 1. Short title This Ordinance may be cited as the Land Acquisition (Possessory Title) Ordinance. 2. Interpretation (1) In this Ordinance, unless the context otherwise requires— (Amended 25 of 2023 s. 33)acquisition order (徵用令) means an acquisition order made under section 3(1) or (2);claim of ownership (擁有權申索) means a claim of possessory title;compensation (補償) means compensation under this Ordinance;date of vesting (轉歸日期) means the date on which land acquired under this Ordinance vests in the Government under section 5; (Amended 29 of 1998 s. 105)Director (署長) means the Director of Lands; (Amended L.N. 94 of 1986; L.N. 291 of 1993)land (土地) means immovable property;owner (擁有人) means a person who has a possessory title to land;possessory title (管有業權) means a possessory title against the Government to land by virtue of sections 7(1) and 17 of the Limitation Ordinance (Cap. 347); (Amended 29 of 1998 s. 105)reference interest rate (參考利率) means the 1-month Hong Kong Dollar Interest Settlement Rate published by The Hong Kong Association of Banks by the close of business on a day. (Added 25 of 2023 s. 33)(Amended 25 of 2023 s. 33)(2) In this Ordinance, a reference to acquisition of any land for a public purpose includes—(a) acquisition of insanitary property for the purpose of securing the erection of improved dwellings or buildings on the property or the sanitary improvement of the property;(b) acquisition of any land on which any building is erected which, by reason of its proximity to or contact with another building, seriously interferes with ventilation or otherwise makes or conduces to make that other building to be in a condition unfit for human habitation or dangerous or injurious to health;(c) acquisition of any land for any purpose connected with the Hong Kong Garrison;(d) acquisition of any land for the purposes of, or incidental to, any works, or any use, as defined by section 2(1) of the Roads (Works, Use and Compensation) Ordinance (Cap. 370), proposed or to be proposed under that Ordinance;(e) acquisition of any land for the purposes of, or incidental to, any works proposed or to be proposed under the Roads (Works, Use and Compensation) Ordinance (Cap. 370) as applied by section 26 of the Water Pollution Control (Sewerage) Regulation (Cap. 358 sub. leg. AL);(f) acquisition of any land for the purposes of, or incidental to, any scheme, as defined by section 2 of the Railways Ordinance (Cap. 519), proposed or to be proposed under that Ordinance; and(g) acquisition of any land for any purpose (of whatever description, and whether or not of the same kind as a purpose described in another paragraph of this subsection) decided by the Chief Executive in Council to be a public purpose. (Added 25 of 2023 s. 33) 3. Acquisition of land for a public purpose (1) Whenever the Chief Executive in Council decides that the acquisition of any land is required for a public purpose, the Director may make an acquisition order for the acquisition of it under this Ordinance if it appears to the Director that any person claims, or may claim, that the land is held under a possessory title.(2) If the Chief Executive in Council authorizes the resumption of any land for a public purpose under section 3(1) or (2) of the Lands Resumption Ordinance (Cap. 124), the Director may make an acquisition order for the acquisition of that land or any part of it under this Ordinance if it appears to the Director that any person claims, or may claim, that the land or that part is held under a possessory title. (Amended 29 of 1998 s. 43; 25 of 2023 s. 34)(Amended 62 of 2000 s. 3) 4. Notices and plans (1) Where an acquisition order has been made in respect of any land, a notice thereof—(a) must be served by the Director— (Amended 25 of 2023 s. 35)(i) on every person who appears to the Director to be a person who may make a claim of ownership in respect of the land or any part thereof; and (ii) on every person who appears to the Director to be an occupier of the land or any part thereof,if such person can be found;(b) must be published by the Director— (Amended 25 of 2023 s. 35)(i) in one issue of the Gazette in both the English and Chinese languages;(ia) on the website of the Director; (Added 25 of 2023 s. 35)(ii) in one issue of an English language newspaper;(iii) in one issue of a Chinese language newspaper; and(iv) by affixing a copy in the English and Chinese languages upon a conspicuous part of the land; and(c) must be made available by the Director for inspection by the public free of charge at such offices of the Government as the Director may direct, during the hours when those offices are normally open to the public. (Amended 25 of 2023 s. 35)(2) A notice under subsection (1) shall—(a) be in such form as the Director may from time to time determine;(b) describe the land to be acquired and state that an acquisition order has been made in respect thereof;(c) state where and at what times a copy of the acquisition order and, where appropriate, a plan of the land may be inspected in pursuance of subsection (1)(c);(d) state the day on which the notice was affixed upon the land;(e) declare that the land described in the notice shall, on the expiration of 1 month from the date stated under paragraph (d) or on the expiration of a longer period determined by the Director and stated in the notice, by virtue of section 5 vest in the Government and that every interest, right or easement of any person in or over the land shall be extinguished; (Amended 29 of 1998 s. 105)(f) state that every person making a claim of ownership to the land described in the notice or to any part thereof, or claiming any interest, right or easement in or over it, shall, in accordance with section 6(1), submit to the Director a written notice of his claim together with such evidence as he may possess to substantiate it, before the date of vesting or within such further period, if any, as the Director may permit.(3) A notice served and published under this section shall be deemed to be notice to every person who has a claim of ownership in respect of the land, and every other person having any interest, right or easement in or over the land. 5. Vesting of land in the Government, and right to enter and take possession Upon the expiry of the period stated under section 4(2)(e) in a notice under that section, the land described in the notice, together with the right to enter upon and take possession of it, shall vest in the Government free of all interests, rights or easements of any kind.(Amended 29 of 1998 s. 105) 6. Claim of ownership of land acquired (1) Where a person—(a) has a claim of ownership; or(b) claims to have any interest, right or easement,in respect of land described in the notice under section 4 or any part thereof, he shall, before the date of vesting or within such further period as the Director may allow in any case, submit to the Director written notice of his claim, together with such evidence as he may possess to substantiate it.(2) The Director may in his absolute discretion accept or reject a claim submitted under subsection (1).(3) If the Director—(a) rejects a claim submitted under subsection (1); or(b) refuses to allow a further period beyond the date of vesting for the submission of a claim under subsection (1),the claimant may apply to the Court of First Instance for the determination of his claim and in any such proceedings the Director shall be the defendant. (Amended 25 of 1998 s. 2)(4) An application under subsection (3) shall be made within 1 year from the date of vesting or within such further period as the Court of First Instance may allow in any case. (Amended 25 of 1998 s. 2) 7. Entitlement to compensation and claims therefor (1) Where—(a) a claim by a person of ownership of any land, or to any right, interest or easement in or over any land, that has been acquired under this Ordinance, is accepted by the Director under section 6(2); or(b) the Court of First Instance, on application made under section 6(3), declares that a person— (Amended 25 of 1998 s. 2)(i) was, immediately prior to the date of vesting, the owner, within the meaning of this Ordinance, of any land that has been acquired under this Ordinance;(ii) had, immediately prior to the date of vesting, any interest, right or easement in or over, any land that has been acquired under this Ordinance,that person shall be entitled to compensation.(2) Any person who is entitled to compensation under subsection (1) may submit his claim for compensation in a form specified by the Director and shall furnish to the Director such accounts, documents and particulars as the Director may reasonably require in support of the claim.(3) A claim for compensation submitted under subsection (2) may include a claim for any costs or remuneration reasonably incurred or paid by the owner or person entitled to compensation in employing persons to act in a professional capacity in connection with his claim to compensation.(4) Where the Director and the person who has submitted a claim for compensation under subsection (2) do not agree as to the amount of the compensation (if any), either party may refer the claim to the Lands Tribunal for determination, in accordance with this Ordinance and the Lands Tribunal Ordinance (Cap. 17), of the amount of compensation (if any) to be paid. (5) A reference under subsection (4) shall be made within 1 year from the date of vesting or within such further period as the Lands Tribunal may allow in any case, but the total period for the purposes of this subsection shall not exceed 6 years from the date of vesting. 8. Rules for assessing compensation (1) The Lands Tribunal shall determine the amount of compensation (if any) payable in respect of a claim referred to it under section 7 on the basis of the loss or damage suffered by the claimant due to the acquisition of the land specified in the claim.(2) The Lands Tribunal shall determine the compensation (if any) payable under subsection (1) on the basis of—(a) the value of the land acquired together with any buildings erected thereon at the date of vesting;(b) the value of any interest, right or easement in or over the land acquired, owned, held or enjoyed by the claimant at the date of vesting;(c) the amount of loss or damage suffered by the claimant due to the severance of the land acquired or any building erected thereon from any other land of the claimant, or building erected thereon, contiguous or adjacent thereto;(d) the amount of loss or damage to a business conducted by the claimant at the date of vesting on the land acquired or in any building erected thereon, due to the removal of the business from that land or building as a result of the acquisition;(e) the amount of any expenses reasonably incurred by the claimant in moving from any premises owned or occupied by him on the land acquired to, or in connection with the acquisition of, alternative land or land and buildings, but excluding any amount to which paragraph (d) applies.(3) In the determination of the compensation (if any) payable under subsection (1)—(a) no allowance shall be made on account of the acquisition being compulsory;(b) no account shall be taken of the fact that the land lies within or is affected by any area, zone or district reserved or set apart for the purposes specified in section 4(1)(a), (c), (d), (e), (f), (g), (h) or (i) of the Town Planning Ordinance (Cap. 131); (Amended 2 of 1988 s. 8; 4 of 1991 s. 10)(c) subject to subsection (4), the value of the land acquired shall be taken to be the amount which the land if sold in the open market by a willing seller might be expected to realize.(4) When any land is acquired, the Lands Tribunal in determining the compensation (if any) payable under subsection (1) and in estimating the value of the land acquired together with any buildings erected thereon, may—(a) take into consideration the nature and existing condition of the land and the probable duration of the buildings in their existing state, and the state of repair thereof; and(b) decline to make any compensation for any addition to or improvement of the land made after the date of publication in the Gazette of the notice under section 4, or any notice under section 4(1) of the Lands Resumption Ordinance (Cap. 124) (unless such addition or improvement was necessary for the maintenance of the property in a proper state of repair): (Amended 29 of 1998 s. 43; 25 of 2023 s. 36) Provided that, in the case of any interest, right or easement acquired after the date of such publication, no separate estimate of the value of the interest, right or easement is to be made so as to increase the amount of compensation. (Amended 25 of 2023 s. 36) (5) The Lands Tribunal may also receive evidence to prove that—(a) the rental of the buildings or premises was enhanced by reason of the same being used as a brothel, or as a gaming house, or for any illegal purpose;(b) the buildings or premises are in such a condition as to be a nuisance within the meaning of any Ordinance relating to buildings or to public health, or are not in reasonably good repair; or(c) the buildings or premises are unfit, and not reasonably capable of being made fit, for human habitation. (6) If the Lands Tribunal is satisfied by such evidence, then the compensation shall—(a) in the first case, so far as it is based on rental, be based on the rental which would have been obtainable if the buildings or premises had not been occupied as a brothel, or as a gaming house, or for an illegal purpose;(b) in the second case, be the amount estimated as the value of the buildings or premises if the nuisance had been abated or if they had been put into reasonably good repair, after deducting the estimated expense of abating the nuisance or putting them into such repair, as the case may be; and(c) in the third case, be the value of the land and of the materials of the buildings thereon. 9. Provisional payment pending determination of compensation (1) The Director may, pending the determination by the Lands Tribunal of the compensation (if any) payable under this Ordinance in respect of the acquisition of any land, pay—(a) an amount as a provisional payment of the amount (if any) payable by virtue of such determination; and(b) interest on any payment made under paragraph (a), for the period from the date of vesting, until the date when the payment is made, calculated on a daily basis according to subsection (1A). (Amended 64 of 1985 s. 2; 6 of 2001 s. 4)(1A) For the purposes of subsection (1)(b), the rate of interest paid— (Added 6 of 2001 s. 4)(a) in respect of a day on which the reference interest rate is published (publication day)—is the reference interest rate; and (Replaced 25 of 2023 s. 37)(b) in respect of a day other than a publication day—is the reference interest rate published on the last publication day before that day. (Replaced 25 of 2023 s. 37)(2) Any payment made by the Director under subsection (1) in respect of any acquisition of land shall be without prejudice to the claim for compensation under this Ordinance or the submission under this Ordinance of the matter to the Lands Tribunal for determination of the amount of compensation (if any) to be paid, or the determination thereof by it under this Ordinance; but the amount of compensation payable by virtue of such determination in respect of the acquisition shall be reduced by the amount of such payment. (Amended 64 of 1985 s. 2) (3) Where the amount of compensation payable by virtue of a determination of the Lands Tribunal under this Ordinance in respect of any acquisition of land is reduced under subsection (2) by the amount of any payment made under subsection (1), such compensation shall not as from the date on which the payment is made bear interest except on the amount thereof as so reduced. (Replaced 64 of 1985 s. 2)(4) Where the amount of any payment made by the Director under subsection (1) in respect of any acquisition of land exceeds the amount of the compensation payable by virtue of a determination by the Lands Tribunal under this Ordinance in respect of such acquisition, the amount of the excess shall be recoverable by the Director as a civil debt. (Amended 64 of 1985 s. 2) Editorial Note: For the validation of interest payments and application provisions relating to the amendments made by the Interest Rates (Miscellaneous Amendments) Ordinance 2001 (6 of 2001), please see section 13 of that Ordinance. 10. Payment of compensation and interest (1) All sums of money agreed or determined as compensation (together with interest thereon as hereinafter mentioned), and all costs and remuneration awarded against the Government, shall be paid out of the general revenue. (Amended 62 of 2000 s. 3)(2) At any time after agreement or determination by the Lands Tribunal of the amount of compensation payable under this Ordinance, the Director may by notice published in the Gazette require the person entitled to the compensation to collect it within the time and at the place specified in the notice.(3) Subject to section 9(3), any sum of money payable as compensation by virtue of an agreement or determination of the Lands Tribunal under this Ordinance bears interest, calculated on a daily basis in accordance with subsection (4), from the date of vesting until the expiration of the time specified in the notice published under subsection (2). No interest is payable on any costs or remuneration. (Amended 25 of 2023 s. 38)(4) For subsection (3), the rate of interest payable—(a) in respect of a day on which the reference interest rate is published (publication day)—is the reference interest rate; and(b) in respect of a day other than a publication day—is the reference interest rate published on the last publication day before that day. (Replaced 25 of 2023 s. 38)(4A) (Repealed 25 of 2023 s. 38)(5) If no claim be made for the compensation money at the place, and within the time, specified in the notice published under subsection (2), the Director shall pay such money into the Treasury.(6) The money thus paid into the Treasury or any part of it may, within a period of 5 years from the expiration of the time specified in the notice published under subsection (2), be claimed by the person entitled thereto and upon such claim being substantiated shall be paid to the person so entitled.(7) At the expiration of the said period of 5 years the money or such part of it as remains unpaid shall be transferred to the general revenue. Editorial Note: For the validation of interest payments and application provisions relating to the amendments made by the Interest Rates (Miscellaneous Amendments) Ordinance 2001 (6 of 2001), please see section 13 of that Ordinance. 11. Payment when person entitled cannot be found, etc. When the person entitled to compensation in respect of any land which has been acquired is absent from Hong Kong or cannot be found, or within 6 months after the date when the amount of compensation shall have been agreed or determined by the Lands Tribunal under this Ordinance makes no claim to the same, or is in the opinion of the Director unable to give an effectual discharge for the same, the Director may direct payment of the compensation to be made to such other person on behalf of the person entitled as he shall think proper, subject to such conditions as he thinks fit, and the receipt of such other person shall be a valid and effectual discharge for the same in the same manner as if payment had been made to the person entitled.(Amended 64 of 1985 s. 3) 11A. Use of land acquired If any land has been acquired for a public purpose under this Ordinance, the Government may use, or allow the use of, the land for any other purpose for a certain period of time before the land is used for that public purpose.(Added 25 of 2023 s. 39) 12. Barring actions against the Government Except as provided by this Ordinance, no action or suit shall lie against the Government or against any other person for any loss or damage suffered by any person as the result of the acquisition of any land under this Ordinance.(Amended 62 of 2000 s. 3) 13. Evidence, notices, etc. (1) In any acquisition order or notice under section 4, it shall be sufficient to state that the acquisition of the land is required for a public purpose, without stating the particular purpose for which the land is required; and a notice containing such statement shall be conclusive evidence that the acquisition is for a public purpose.(2) Where, under this Ordinance, notice is required to be served on any person—(a) that notice shall be in writing and in both the English and Chinese languages;(b) it shall be served on that person by delivering it to him by hand or by registered post.(3) The Director shall not be obliged to serve any notice on any person whose address is unknown and cannot reasonably be ascertained.(4) A certificate purporting to be signed by a public officer shall be prima facie evidence of the facts stated therein relating to the service, giving, publication or affixing of any notice.(5) The acquisition or vesting of any land under this Ordinance shall not be affected by—(a) any defect in a notice required under this Ordinance; or(b) any failure to serve, publish or affix any notice under this Ordinance. 14. Absence of authorization of expenditure for works not prevent certain matters The fact that the expenditure for any works for carrying out the public purpose for which any land is to be acquired has not been approved or authorized under the Public Finance Ordinance (Cap. 2) or any other enactment does not prevent—(a) the decision to acquire the land under section 3(1);(b) the making of an acquisition order for the acquisition of the land under section 3(1) or (2);(c) the publication of a notice of the acquisition order for the acquisition of the land under section 4; or(d) the provision of any compensation (whether monetary or non-monetary) or any financial or other assistance, whether or not under an enactment, in connection with the acquisition of the land.(Added 25 of 2023 s. 40) 15. Transitional provisions for Development (Town Planning, Lands and Works) (Miscellaneous Amendments) Ordinance 2023 (1) If any land has vested in the Government under section 5 before 1 September 2023, sections 9 and 10 as in force immediately before that date continue to apply in relation to the compensation in respect of the acquisition of the land as if sections 37 and 38 of the Amendment Ordinance had not been enacted.(2) In section 3(2), a reference to an authorization made by the Chief Executive in Council under section 3(1) or (2) of the Lands Resumption Ordinance (Cap. 124) includes a decision made by the Chief Executive in Council under section 3 of that Ordinance as in force immediately before 1 September 2023.(3) In this section—Amendment Ordinance (《修訂條例》) means the Development (Town Planning, Lands and Works) (Miscellaneous Amendments) Ordinance 2023 (25 of 2023).(Added 25 of 2023 s. 40)