More than a quarter of homeowners in fire-hit Wang Fuk Court have signed contracts to sell their flats to the government, with funds already disbursed to homeowners of two units.
As of July 10, more than 550 landlords in Wang Fuk Court have signed a formal sale agreement with a company set up by the government under a special property purchase scheme, the Housing Bureau. said on monday.
This makes up about 28 percent of the total 1,984 households on the property.
The government announced the return scheme in February after a fire ripped through seven residential towers at Wang Fuk Court in Tai Po on November 26 last year, killing 168 people and displacing thousands.
The bureau said on Monday it was “sparing no effort” to complete procedures for the transfer of ownership as soon as possible. The procedures for two units have been completed and payments have been made to the former owners, the announcement states.
See also: Court administrator Wang Fuk’s ‘secure’ owners meeting could be held next month
Under the buy-to-let scheme, owners will be able to buy a new home on the private market or move into a subsidized property, either through cash or an exchange exercise.
Last month, the scheme was extended to Wang Chi House, the only building on the estate spared from the fire.
More than 77 percent of homeowners in that tower signed a letter of acceptance to show they were willing to sell their homes.
Homeowners will have until August 31 to express interest in the purchase scheme.
Bankruptcy claims ‘baseless’
The bureau also said claims that the company set up by the government to take ownership of the property was a quasi-bankrupt company were “completely unfounded”.
The purchase of the Wang Chi House apartments will cost HK$1 billion, on top of the HK$4 billion earmarked for the other seven towers. The government will seek Legislative Council approval for an additional HK$1 billion on Friday.
“It cannot be ruled out that the allegations were made by individuals with ulterior motives to mislead the public. The government should set the record straight,” the bureau said.
The bureau also said the purpose of an indemnity provision in the sale agreement is to “require owners to make legally binding representations and confirmations regarding the title status of their properties prior to the completion of the transaction.”
This includes confirming that the owner is the sole owner of the property, that it is free of any third party interest or right of occupancy and that the property is not subject to any civil process or claim.
“This agreement serves to ensure that the buyer receives a clean and undisputed title upon completion of the transaction,” the bureau said.
