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Recovery of conservancy and service charges from sale of flat

Town Councils Act 1988

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—(1) Where any conservancy and service charges levied in respect of any flat by a Town Council under section 53 remain unpaid on the expiry of the period of 90 days after the Town Council has served on the owner of the flat a written demand for such charges under section 53(6), the charges, together with any interest accrued thereon constitute a charge on the flat on the expiry of that period in favour of the Town Council.(2) Upon the constitution of the charge on a flat under subsection (1), the Town Council has the power of sale and all other powers relating or incidental thereto to sell and effectually transfer the title to the flat to any purchaser as if the Town Council is a registered mortgagee even though the charge is not registered under the Land Titles Act 1993.(3) Any charge on a flat constituted under subsection (1) is subject to —(a)all encumbrances registered or notified under the Land Titles Act 1993 in respect of that flat before the date of the constitution of the charge;(b)all moneys due under the lease of the flat to the Board (on its own account or on account of the Central Provident Fund Board), whether before, on or after the date of the constitution of the charge; and(c)all moneys due to the Central Provident Fund Board under the charge constituted under section 21 or 21B of the Central Provident Fund Act 1953, whether before, on or after the date of the constitution of the charge.(4) Subject to subsection (5), a Town Council may, with the prior written approval of the Board, by notice of sale to be served or published in the prescribed manner, declare its intention of selling, on the expiry of the period of 90 days from the date of the notice of sale, any flat which is subject to a charge constituted under subsection (1), and if, on the expiry of that period, any conservancy and service charges (including any interest thereon) or any part thereof have not been paid or satisfied, the Town Council may sell that flat.(5) A Town Council must not proceed under subsection (4) to sell any flat in respect of which any conservancy and service charges or any part thereof are due if there is or are upon the flat and liable to be seized and sold by the Town Council by writ of seizure and sale movable property belonging to the owner of the flat of a value estimated by the Town Council to be sufficient to realise the sum required to satisfy such unpaid charges and costs.(6) Where a Town Council has sold any flat under subsection (4), neither the purchaser of the flat nor the Registrar of Titles appointed under the Land Titles Act 1993 are to be concerned to inquire into the regularity or validity of the sale or transfer.(7) For the purpose of registration of a transfer of any flat sold under subsection (4), the Registrar of Titles may dispense with the production of the duplicate lease of the flat or the duplicate subsidiary certificate of title in respect of the flat, as the case may be.(8) The moneys received by a Town Council in exercise of its power of sale under subsection (4), after discharging all prior encumbrances, must be held by it in trust to be applied —(a)firstly, in payment of all costs and expenses properly and reasonably incurred by the Town Council as incidental to the sale or any attempted sale, or otherwise;(b)secondly, in payment to the Central Provident Fund Board of all moneys secured by its charge constituted under section 21 or 21B of the Central Provident Fund Act 1953 and are mentioned in subsection (3);(c)thirdly, in payment to the Board of such moneys due under the lease of the flat to the Board as are mentioned in subsection (3);(d)fourthly, in payment to the Board of all moneys secured by its charge on the flat (if any) under section 82 of the Housing and Development Act 1959 for unpaid improvement contribution, and in payment to the Town Council of all moneys secured by its charge on the flat (if any), in the order of their priority;(e)fifthly, in discharge, equally and without preference, of —(i)the conservancy and service charges and interest accrued and due to the Town Council at the date of sale; and(ii)any improvement contribution (including any interest and penalty thereon) accrued and due to the Town Council at the date of the sale, whether or not secured by any charge under section 32;(f)sixthly, in discharge of any improvement contribution (including any interest and penalty thereon) accrued and due to the Board at the date of the sale, which is not secured by any charge under section 78 of the Housing and Development Act 1959;(g)seventhly, in payment of subsequent mortgages and charges (if any) in the order of their priority; and(h)finally, the residue of such moneys so received must be paid to the person who appears from the land‑register kept under the Land Titles Act 1993 to be entitled to the flat sold or to be authorised to give receipts for the proceeds of the sale thereof.(9) Despite section 80 of the Land Titles Act 1993, where further conservancy and service charges and interest thereon are due to a Town Council when a charge on a flat constituted under subsection (1) is subsisting, the amount of the charges due (including interest thereon) rank in priority to any other claims on the flat as if the charges were due at the date of the constitution of that charge.(10) Any charge on a flat constituted under subsection (1) —(a)continues in force until all the conservancy and service charges (including any interest thereon) secured by the charge have been paid; and(b)upon payment of the conservancy and service charges (including any interest thereon) and any necessary incidental expenses to the Town Council before it has exercised its powers of sale under subsection (4), is discharged and the owner of the flat is entitled to a certificate of discharge executed and acknowledged by the Town Council as to the receipt of such payment.(11) For the purpose of estimating the value of any movable property belonging to the owner of a flat under subsection (5), a Town Council may, by its employees or agents, enter upon the flat to carry out such valuation at any reasonable time after giving notice to any occupier of the flat.[44

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