Housing Act, 1966

Cottage or plot may be charged, mortgaged, subdivided or alienated.

98.—(1) Notwithstanding sections 17 and 21 of the Act of 1936, and subject to the provisions of this section, any cottage, plot or part of a plot held with a cottage may be and shall be deemed always to have been capable, during the payment period in respect of the cottage, of being charged, mortgaged, subdivided or alienated otherwise than by devise or by operation of law, with the consent of the relevant housing authority.

(2) Without prejudice to any other power in that behalf, a housing authority may withhold their consent to the alienation of a cottage if they are of opinion that—

(a) the person to whom it is intended to alienate the cottage is a person who is not in need of housing, or

(b) the alienation would, if effected, cause or be likely to cause the person intending to make the alienation or any of his dependants to be a person without adequate or suitable housing.

(3) Where a cottage which is subject to and charged with the future payment of an annuity is intended to be sold or transferred, the housing authority may, before consenting to the sale or transfer, require the annuity to be redeemed under section 99 of this Act.

(4) Where a plot or part of a plot held with a cottage which is subject to and charged with the future payment of an annuity is charged, mortgaged, subdivided or alienated otherwise than by devise or by operation of law, after the commencement of this section, the housing authority shall apportion the annuity in such manner as they consider appropriate, and in the case of a sale or a transfer the authority shall require to be redeemed under section 99 of this Act the part of the annuity apportioned by them in respect of the plot or the part of a plot.

(5) A housing authority shall, before giving their consent to the alienation or subdivision of any cottage which is subject to and charged with the future payment of an annuity (other than an alienation or subdivision of a class specified by the Minister for the purposes of this subsection), require the payment to them of an amount approved by the Minister for the said purposes.

(6) In case any person, without the consent of a housing authority, attempts or purports to effect in relation to any cottage, plot or part of a plot held with a cottage, a charge, mortgage, subdivision or alienation as respects which the consent of a housing authority is required by this section or by a vesting order made under section 17 of the Act of 1936, such attempted or purported charging, mortgaging, subdivision or alienation shall be null and void against all persons; provided, however, that in any case where the consent of the authority is given after the attempted or purported charging, mortgaging, subdivision or alienation, such consent shall operate, if the authority so direct, to validate with retrospective effect, such attempted or purported charging, mortgaging, subdivision or alienation.