HIRE-PURCHASE PROGRAMME

   Decree  |  Order #10  |  Order #11  |  Programmes Hire-Purchase 

Safer 5 1422                                  
 April 29, 2001                                 OFFICIAL JOURNAL OF THE

 ALGERIAN REPUBLIC # 25

Executive decree # 01-105 of Moharram 29, 1422 corresponding to April 29, 2001fixing terms and conditions of acquisition as part of Hire-Purchase of lodgings achieved on public funds.

The head of government, According to the report of the Ministry of Housing and Urbanism,

· Considering the constitution, notably its articles # 85-4 and 125 (indent 2); · Considering the enactment # 75-58 of September 26,1975, modified and completed stating common law; considering the legislative decree # 93-03 of Ramadan 7, 1413 corresponding to March 1, 1993 relevant to real estate activity; · considering the enactment # 95-27 of Chaabane 8, 1416 corresponding to December 30, 1995 stating finance Act for 1996, notably its article 170; · Considering the order in council # 2000-256 of Joumada El Oula corresponding to August 26, 2 stating the appointment of the head of government; · Considering the order in council # 2000-257 of Joumada El Oula corresponding to August 26, 2000 stating the appointment of government members;

Enacts :

Article 1: the provisions of the present decree are directed to fix terms and conditions of acquisition of Hire-Purchase lodgings achieved on public funds.

CHAPTER I GENERAL PROVISIONS

Article 2: Hire-Purchase is a way to access lodging with prior option of acquisition in full ownership at the end of a hiring period established within a written agreement.

Article 3: the localization and the number of lodgings directed to Hiring-Purchase are fixed by the Minister of Housing.

Article 4: lodgings achieved on state or local communities' budget are ruled by the present provisions, according to the norms of surfaces and comfort previously definite. The provisions of the present article are stated the Minister of Housing order.

Article 5: the price of lodgings directed to Hire-Purchase is fixed on the basis of the final cost of the construction including the expense of land acquisition as well as the expenses of administrative and technical management calculated on the period preceding the transfer of ownership.

CHAPTER II
CONDITIONS OF HIRE-PURCHASE

Article 6: the Hire-Purchase is directed to each person who doesn't own and didn't own in full possession a property for residential use, and who didn't have the advantage of a financial national assistance for the construction or the acquisition of a lodging and with an income-wise that doesn't exceed 5 times the SMIG - interprofessional minimum salary of guarenty. The profit of Hire-Purchase provided by the provisions of the present decree is valid only once for the same person.

Article 7: every applicant for the acquisition of lodging as part of the programme Hire-Purchase must fulfil an initial capital of 25 % as minimum from the lodging's price.

It is also required to justify of an income-wise allowing the falling due of fixed monthly instalments calculated on the basis of the remaining amount of the lodging's price including the expenses of management and discounting within the limits of the period agreed upon between both sides of the contract.

Article 8 : in all cases, the amount of the price of the lodging after deduction of the initial capital must be regulated by the beneficiary on a period that doesn't exceed 20 years. This limited delay of payment is done according to schedule that establishes the amount to be monthly regulated on determined period.

Article 9 : the payment of the amount of the last monthly instalment of the selling price of the lodging as anticipated in article 8 above must be done in all cases by the beneficiary .is over sixty five (65) years of age.

Article 10 : every beneficiary of lodging in Hire-Purchase can proceed to payments by anticipation in several monthly instalments. In this case, the promoter must revise the terms of the schedule previously determined.

Article 11 : the payment of the initial capital by the beneficiary and his subscription to the conditions of adjustment of the price of lodging as fixed the schedule anticipated in article08 above, is giving way to the establishment of a contract of Hire-Purchase between the promoting organism and the beneficiary.

Article 12 : the non payment by the beneficiary of three (03) consecutive bills induces the application of a penality of 5 % of the amount of the monthly instalment. In case of non payment of six (06) monthly instalments, the contract of Hire-Purchase is realised at the beneficiary's fault. If the cas, the promoter being allowed to institute beside the competent jurisdiction proceedings in order to expel the occupier out of the lodging.

Article 13 : benficiares of Hire-Purchase are submitted to rules of co-ownership as defined by the legislation and law in effect.

Article 14 : Every occupier of a public hiring lodging who fulfils the conditions above-mentioned under the reserve to retroceed that lodging to the lessor organism as soon as he posses the lodging in Hire-Purchase.

CHAPTER III
MODALITIES OF HIRE-PURCHASE

Article 15 : the demand for acquisition of a lodging in Hire-Purchase is done beside the concened promoter on a pinted type of which the model is fixed by the minister of housing. The demand is introduced according to delays stated by the promoter within advertisments.

Article 16 : demands are treated acoording to modalities and conditions defined by ministerial order.

Article 17 : the contract of Hire-Purchase anticipated in article 11 above-mentioned is established beside a notary survey. It must also precise the le suspensive nature of Hire-Purchase in case of non respect of the prvailing conditions by the beneficiary.

CHAPTER VI
FINAL PROVISIONS

Article 18 : in case of expel decision, the promoting organism proceeds to the reimbursment (refund) of the initial capital, a deduction done on unpaid instalments by the occupier as well as the amount of expenses of possible degradation caused to the lodging. The valuation of the amount of expenses of repair of degradation can be entrusted to chartered expert.

Article 19 : the transfer of ownership of the conserned lodging is done acoording to rules in effect after the payment of its total price .

Article 20 : in case of beneficiary's death, the right of transfer of receivable acounts and liabilities relevant to the lodging in Hire-Purchase is aknowledeged to heirs.

Article 21 : the benficiary of Hire-Purchase can not ceede his lodging before the legal transfer of ownership of his benefit.

Article 22 : the present decree will be published on the Official Journal of the Algerian Democratic and Popular Republic.

Done in Algiers moharem 29, 1422 corresponding to April 23, 2001.

                                                                                                                                            Ali Benflis.

Ministerial order # 10 ……………
Stating terms and conditions of demendsfor lodging's acquisition in Hire-Purchase.

The Minister of Housing and Urbanism : 

· Considering the order in council # 01-139 of Rabbi El Aoual 8, 1422 corresponding to May 31, 2001 stating the appointment of government members.

· Considering the executive order # 91-148 of May 12, 1991 stating the founding of the National Agency for Amelioration and Development of Housing.

· Considering the executive order # 92-176 of May 4, 1992 stating the attributions of the Ministry of Housing ;

· Considering the executive order # 01-105 of Moharrem 29, 1422 corresponding to April 23, 2001 stating terms and conditions of acquisition in Hire-Purchase of lodgings carried out on public funds, notably its articles 15 and 16;

Orders; General provision

Article 01: in application of the provisions of articles 15 and 16 of the executive order # 01-105 of April 23, 2001 above mentioned, the present order is to establish terms and conditions dealing with demands for acquisition of lodging relevant to Hire-Purchase formula.

Article 02 : the demand of acquisition in article 01 above is formulated beside the appointed structures of AADL, the agency ADL on a printed form and the agency ADL on a printed form type of which the model is attached to the present order. It is dropped beside the opened offices in this respect by the agency. It is accompanied with enumerated documents in the printed document "type" enclosed with the present order. It is introduced as soon as the opening of the subscription near the agency for the acquisition of a lodging in Hire-Purchase formula, in respect of conditions provided by law in effect.

CHAPTER II TREATMENT OF DEMANDS

Article 05 : the committee dealing with demands, presided over by the General Manager of the Agency or his duly commissioned representative, the committee is composed of : The manager of Housing and Public facilities of the concerned wilaya (city) by the housing programme directed to Hire-Purchase. A representative duly commissioned by the General Manager of the National Cash for Housing (CNL). Besides, this committee can be extended, if necessary to other members, notably members representing the Ministry of Housing.

Article 06 : If the number of demands that fulfil conditions of eligibility, accepted by the committee provided in article 05 above is superior to the number of housings of the ordered programme, the non-circumspect applicants have to be informed in writing and specifying their demand's classification and inviting them, if they want, to keep their demand prospective lodgings in Hire-Purchase programme. In that case, the applicant is asked to confirm by registered letter, his initial application concerning for prospective lodging programmes achieved by the Agency.

Article 07 : the committee's works are sanctioned by minutes signed by all its members. The minutes must emphasise names and first names of applicants whose files have been subjected to treatment by specifying : Subscription date at the time the demand was accepted. The amount of the proposed initial capital. Term of payment of the remaining amount of the lodging's price. The type of the assigned lodging, its localisation notably within the building. A copy of minutes is directed to the Ministry of Housing.

Article 08 : beneficiaries must be recorded in a national file relevant to this operation within the head office of the Agency.

According to the components registers and national file provided above, static statements will be drawn up quarterly, in order to analyse the evolution of satisfying the demand through the achieved programme in Hire-Purchase. These statistics statements with the analysis that follows are directed to the Ministry of Housing at the end of each half-year.

CHAPTER III FORMALISATION

OF DECISIONS OF HIRE-PURCHASE

Article 09 : beneficiaries circumspect by the committee are informed about the decision by the Agency's services in registered letters, inviting them to pay the 10 % of the lodging's amount in fulfil acquisition option. The remaining 15 % out of 25 % required in the initial capital are paid when signing up the Hire-Purchase contract, as provided in article 10 above-mentioned. The receipt of payment of the 10 % of the lodging price must be dropped beside the Agency's services to be attached to the concerned person's file.

Article 10 : before handing over the lodging's keys, a contract of Hire-Purchase must be established between the beneficiary and AADL.

Article 11 : before handing over the lodging's keys, a contract of Hire-Purchase must be established between the beneficiary and AADL in executed deed by a notary according to the model type ratified by the Minister of Housing order.

Article 12 : when the lodging is acquired by the beneficiary, a contradictory visit must be done with a technical service of the promoter and sanctioned by minutes of remittance signed by the two parties.

FINAL PROVISION

Article 13 : all objection relevant to committee's decision can be done in a form of recourse in the Add-Hoc committee established by decision of the Ministry of Housing.

Article 14 : each non-occupation of more than three (03) months after handing over keys can breakdown the decision of Hire-Purchase and adopt measures aimed at the contract cancellation.

Article 15 : the present order will be published in the Official Journal of Algerian Democratic and Popular Republic.

Ministerial order # 11 of ………………………… 

Stating model type of Hire-Purchase contract

The Ministry of Housing and Urbanism;

 · Considering the enactment # 75-58 of September 26, 1975, modified and completed stating common law; · Considering law # 88-27 of July 12, 1988 stating the organisation of notaries (notariat) ; · Considering decree # 83-666 of November 12, 1983 stating rules relevant to the co-ownership and the management of collective buildings modified and completed; · Considering the order in council # 01-139 of Rabie El Aoual 8, 1422 corresponding to May 31, 2001 stating the appointment of government's members; · Considering the executive decree # 91-148 of May 12, 1991 stating the foundation of AADL; · Considering the executive decree # 92-176 of May 4, 1992 stating the allotment of the Ministry of Housing; · Considering the executive decree # 01-105 of Moharram 29, 1422 corresponding to April 23, 2001 stating terms and conditions of acquisition in respect to Hire-Purchase of lodgings achieved on public funds notably its article 17; · Considering the executive decree # 10 of July 21, 2001, stating terms and conditions of dealing with demands of acquisition of lodgings in Hire-Purchase.

Orders ;

Article 01 : in conformity with article 17 of the executive decree # 01-105 of Moharam 29,1422 corresponding to April 23,2001 above-mentioned. Hire-Purchase of lodgings achieved on public funds and formulised by an authentic deed, in conformity with the model attached to the present order.

Article 02 : the type of contract mentioned in article 01 above-mentioned can be completed by any useful clause by the concerned parties, under reserve that it doesn't contradict the legislative provisions law in effect concerning real estate dealings.

Article 03 : the present order will be published on the Official Journal of the Algerian Democratic and Popular Republic.

                                                          

                                                       

ANNEXE

MODEL OF HIRE-PURCHASE CONTRACT

The year ……………………………………………………………. And the …………………………………………………………………………. Beside Mr ……………………….notary at………………… Have appeared : 1- National Agency for Amelioration and Development of Housing " Aadl " below denominated " the promoter ", represented by its General Manager, (mrs) (mr)…………………..born on ………………………in………………. and 2- (mrs) (miss) (mr) ……………born on ……………………in……………. below denominated "purchaser-tenant", from other part. Who requested the above-mentoned notary to receive in an authantic deed of agreement reached by the concerned parties for Hire-Purchase of a lodging financed by public funds. The named parties involved in the above contract have, before writing the present deed, set out what follows :

Additional elements to the contract

Promoter's declaration :

The promoter consents to bring to Hire-Purchase the lodging identified by the present contract, according to the provisions of the executive decree # 01-105 of Moharam 29, 1422 corresponding to April 23,2001.

Stipulated contractual clauses

The promoter appearing as first concerned party declares to make the identified lodging in the present at the Purchaser-Tenant's disposal and insures all ordinary (usual) guaranties as well as those particular of the present contract and in the referential documents above-mentioned.

Conditions of Hire-Purchase

Article 01 : to transcribe in number and letters, the selling price of the lodging object of the present Hire-Purchase contract and to precise that is the find price (principles stated in the executive decree # 01-105 of Moharam 29, 1422 corresponding to April 23, 2001). "the selling price object of the present contract is fixed at …………………… …………………………………………………AD (in number and letters). "the selling price is definitive (final) and not subject to any modification".

Article 02 : to mention in number and letter the amount of the initial capital paid by the "Purchaser-Tenant" and to justify theses payments by references of receipts delivered for the purpose. In conformity with article 07 of the executive decree # 01-105 of Moharam 29, 1422 corresponding to April 23, 2001, the Purchaser-Tenant declares having proceeded to the payment of sum representing ……………………% of the lodging's selling price. These payments in addition to the indicated sums above are duly (in due form) stated, verified (checked) by the existence of attested bank receipts given by the Purchaser-Tenant, in…………………….to the promoter and registered (recorded) by the latter in his book-keeping.

Article 03 : the remaining amount of the due price by the Purchaser-Tenant after deduction of the amount of the personnel initial capital, it is about ……………………AD (in number and letters).

Article 04 : the delay of payment of the remaining amount of the lodging's price above-mentioned after deduction of the initial capital is fixed to ……………………..years.

The attached schedule to the present contract settles the amount to be monthly paid by the Purchaser-Tenant till the deadline of the fixed delay. In all cases, this schedule doesn't exceed a period of 20 years and the payment of the amount of the last monthly payment of the lodging's price must be performed before the Purchaser-Tenant is over sixty five (65) years of age.

Article 05 : the present contract has got a suspensive aspect and does not consecrate by the transfer of property (ownership) of the lodging object to the present Hire-Purchase to the purchaser-tenant

Article 06 : the purchaser-tenant is contracted to pay regularly at a fixed term, the amount of each monthly instalment, without need of injunction from the promoter, according to the ms of the schedule and attached to the present contract. He also avoids any modification or transformation of the lodging object of the present contract.

Article 07 : in conformity with article 10 of decree # 01-105, above-mentioned, the purchaser-tenant ,can he wants, proceed to payments by anticipation stating one or many monthly payments. In this case, the promoter is asked to revise terms of the schedule in relation to payments realised by anticipation.

Article 08 : the schedule of payment stated between the purchaser-tenant and the promoter is not susceptible to revision in the way of extending the established initial period.

Article 09 : the purchaser-tenant is refrained from doing any transaction concerning the lodging object to the present contract of Hire-Purchase for a period of ten (10) years from the establishing date of the present contract. This prohibition is legitimate (valid) even if the payment is by anticipation as stated in article 07 above-mentioned.

Article 10 : the non-payment by the by the purchaser-tenant of three (03) consecutive monthly instalment induces the application of a penalty of 5% of the amount of the unpaid monthly instalment. The non-payment of six (06) executive monthly instalments induce the realisation of the present contract at the beneficiary's fault. In this case, the purchaser-tenant is obliged to give back the lodging object of the present contact to the promoter.

Article 11 : the transfer of ownership of the lodging object of the present contract in Hire-Purchase is realised once the total selling price is paid by the purchaser-tenant. The transfer of ownership is consecrated by a recorded authentic deed beside a notary in conformity with law in effect beside the concerned administration.

Article 12 : once the transfer is effected according to article 11 above-mentioned and to the legislative and planned provisions in this respect, the purchaser-tenant enjoys to the full the allotments of the property.

Article 13 : a right of pre-emption can be practised by the state in case of assignment of this real estate by the purchaser.

Article 14 : the promoter establishes percentages of co-ownership relevant to the lodging object of the present contract, in order to permit a full enjoyment of the common parties assigned to the purchaser-tenant. The value of percentages of co-ownership is mentioned in the deed of Hire-Purchase of lodging, object of the present contract.

Article 15 : without prejudice concerning the provisions anticipated in article 17 above-mentioned, the purchaser-tenant is bound to respect the rules of co-ownership once signing the present contract. In this respect, he declares his adherence and participation to the Housing's administration of the building or buildings where his lodging is located, according to laws and regulations of co-ownership.

Article 16 : the management and the administration of the building or buildings where is located the lodging object of the present contract are assured by an appointed estate administrator.

Article 17 : the non respect by the purchaser-tenant of one of the bonds stipulated by the present contract and / or those stated by the executive decree # 01-105 of Moharam 29, 1422 corresponding to April 20, 2001 and / or the commitments stipulated by the affidavit signed by the purchaser-tenant induces the cancellation of the present contract at the beneficiary's fault.

Article 18 : the cancellation of Hire-Purchase contract at the purchaser-tenant fault induces the eviction of the latter from the lodging. After the recovery of the lodging, the organism proceeds to the refunding of the initial capital paid by the purchaser-tenant after deduction of unpaid monthly instalments. Repairing expenses of possible damage caused to the lodging, technical and administrative expenses of management contracted by the promoter for co-ownership in addition to lawsuit expenses, if any.

Article 19 : during the period including the delay of due payment, the purchaser-tenant is contracted to pay for all interior reparations in his lodging without the promoter's intervention.

Article 20 : the purchaser-tenant and the promoter are contracted, in every one's concern, to assure their contractual obligations, in mutual good-willing, according to clauses of the present contract and relevant regulations and legislative provisions.

Article 21 : the present contract is established in an authentic form beside a notary survey of Sir ………………………………….it is being applied from its signature date by the two parties.

Read and approved For the promoting organism the purchaser-tenant. General Manager (mrs) (miss) (mr) ……………

HIRE-PURCHASE PROGRAM

Program per wilaya (city)

  
TOWER BLOCKS (I.G.H)