Family Arrangements, Constructive Trusts And The Home Ownership Scheme

Abstract

In two recent cases heard together by the Court of Final Appeal, the court held that a trust arising from contributions to the costs of purchase of a HOS flat is not an assignment or alienation rendered void by s 17B of the Housing Ordinance. This is a sensible and pragmatic conclusion where contributions from members of the family or friends of the purchaser are concerned and can be justified by a purposive interpretation of the section. However, the court may have gone too far in its reasoning and opened up a route for commercial exploitation by which those very purposes will be undermined.