3. Application procedures

3. Application procedures

Application and project selection

Owners interested in joining the Facilitating Services must jointly submit an application form, together with the relevant information, to URFS.

URFS will notify the contact person in writing of the result of the application about two weeks after receipt of the application form.

In deciding whether to select a particular application for further processing, URFS considers whether the application requirements are satisfied, assesses the available manpower and financial resources of URFS at the time of applications, whether the application has passed the test of financial viability; building conditions; planning considerations; planning gains; property ownership structure and project implementability; etc.

Facilitation Agreement(s)

For an application which has been selected as Facilitation Project, URFS will enter into a Facilitation Agreement with each of the Applicants and each of the other owners in the Application Site who participates subsequently (“the Facilitation Agreement Participants”). The Facilitation Agreement will detail the rights and obligations of URFS and of the Facilitation Agreement Participants.

Joint Sale Agreement

When the percentage of undivided shares of participating owners reaches the joint sale threshold,  an independent valuation consultant will be appointed by URFS on behalf of the Facilitation Agreement Participants to assist them in setting the reserve price and agreeing on the sharing ratios for distribution of the sale proceeds obtained from a successful joint sale. The Facilitation Agreement Participants shall sign a Joint Sale Agreement confirming their agreement to sell their property interests jointly subject to the reserve price and to share the sale proceeds among themselves in accordance with the agreed sharing ratios.

Sale

The property interests covered by the Joint Sale Agreement are sold by auction or tender to the purchaser offering the highest bid which meets or exceeds the reserve price.

If the reserve price is not met, the joint sale fails. The joint sale services will be terminated. No refund will be made.

If the property is successfully sold, the sale proceeds, less the contribution to URFS, are distributed to the Joint Sale Agreement Participants in accordance with the agreed sharing ratio schedule.