Land Registration System
The present land registration system is a deeds registration system governed by the Land Registration Ordinance. Under the deeds registration system, instruments affecting real properties are lodged with the Land Registry for registration.The deeds registration system only confers priority on registered deeds and serves as notice of registered instruments to the public. Registration is not proof that the person registered as the owner has good title to the property. The advantage of the deeds registration system is its simplicity. The complexities of advice on title are left to the legal profession.
The present deeds registration system has been in operation since 1844. Subject to the enactment of the Land Titles Bill, the Land Registry proposes to introduce the titles registration system in Hong Kong.
Land Registration (Amendment) Bill
Amendments to the Land Registration Ordinance are necessary to provide for the Central Registration System - a key component of the Strategic Change Plan, a new service of colour imaging of plans and improved procedures for land registration. The major customers of the Land Registry were consulted on the proposed amendments and indicated support to the proposals.The Land Registration (Amendment) Bill was introduced into the Legislative Council in January 2001. A Bills Committee was set up in the Legislative Council to study the details of the Amendment Bill. It is hoped that the Amendment Bill will be enacted by end 2001.
The changes proposed in the Amendment Bill will come into effect in two stages. The first stage is for the implementation of the various improvements on the registration procedures. These improvements include temporary withdrawal of instruments, registration of certain certified copy documents and a new power for the Land Registrar to remove long pending entries of instruments withheld from registration. These changes will come into operation upon the enactment of the Amendment Bill.
The second stage is for the implementation of the Central Registration System. We envisage that the changes for the central registration will come into operation when the new integrated computer system is ready in 2003.
Land Titles Bill
The Land Titles Bill, which proposes to convert the present deeds registration system to the title registration system, was introduced into the Legislative Council on 16 November 1994. In June 1995, the Legislative Council decided that there was insufficient time to consider the Bill during the legislative session ending July 1995.The title registration system will simplify registration and conveyancing procedures. Because the number of paper documents under a title registration system is less than under a deeds registration system, it will also facilitate the application of modern IT practices to document management.
The introduction of the land title system is the second phase of the Strategic Change Plan. The Land Registry has been further reviewing the Land Titles Bill in the light of the comments received from the various consultations. It is anticipated that the amended Land Titles Bill will be ready for introduction into the Legislative Council in 2001/2002.
Under the proposed land title system, certainty of title will be conferred on the registered owner as the land register will be the conclusive evidence as to ownership. The title of the registered owner is guaranteed by payment of an indemnity in the event of fraud. The land title system will bring Hong Kong's land registration system in line with that in most other advanced common law jurisdictions. This will provide the international legal and business community with a greater degree of confidence in property ownership in Hong Kong.