Overdue law on land titles could have simplified flat-buying in Hong Kong, Audit Commission says
A lack of consensus among stakeholders has led to government dragging its feet in the enforcement of an ordinance that was enacted 13 years ago
Buying a flat in Hong Kong could be much simpler and less costly if the implementation of a land law had not been delayed for more than a decade, the city’s official auditor said in a report released on Wednesday.
The Audit Commission said the Land Titles Ordinance, enacted in 2004, aimed to simplify the land and property registration system. But the ordinance has not been enforced for 13 years.
Under the existing deeds registration system, the Land Registry only serves as an index, and does not legally prove that a person is the true owner of a property.
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As such, property or land buyers have to hire a lawyer to review each and every title document for transactions in the past 15 years before proceeding with the purchase.
This process is to verify ownership and to ensure that there are no outstanding problems, such as government orders to remove illegal structures, or unpaid management fees.
Changes under the new law were supposed to give legal recognition to a registered person as the true owner. This would do away any need to review title documents, therefore avoiding high lawyer fees and administrative delays.
This new system has long been adopted by countries such as Britain and Australia. In Hong Kong, the old deeds system has been in place since 1884 and the government has been discussing a conversion to a title registration system since 1988.