New recommendations on land title registration

The Government has made considerable progress in addressing the concerns raised by the consulted parties over the proposed land title registration system.

The chairman of the Land and Building Advisory Committee (LBAC), Professor Yeung Yue-man, made the statement today(Tuesday) after the committee was briefed on the recommendations to revise the draft Land Titles Bill.

"We understand that the outcome of the previous round of consultations indicated support in principle for the proposed land title registration system, which provides for certainty of land titles guaranteed by the Government and simplification of the title-establishing process in future property transactions," Professor Yeung said.

"The Government has made new recommendations on the details of the proposed system which are expected to be welcomed by professional bodies and the general public."

On the conversion from the present deeds registration system, the Government proposes a gradual process spread over 15 years instead of the previously proposed mid-night conversion by operation of law.

"During the 15-year period, conversion to guaranteed titles will occur upon registration of first transfer or voluntary application subject to presentation of a solicitor's certificate of good title. New developments will also be registered under the new title registration system," said Professor Yeung.

"After 15 years, all unconverted land will be deemed to be converted to the title registration system."

In the event of a fraudulent transfer of property achieved through the fraud of a third party, the Court would have the power to order rectification of the land register on application, should failure to do so be considered unjust.

On the indemnity issue, the Government proposes to indemnify the persons who suffered loss by reason of an entry in or an omission from the land register arising from either fraud affecting the ownership or mistakes of the Land Registry staff.

Consideration will also be given to raise the upper indemnity limit from $20 million to $30 million for each claim to provide protection for average property owners. The arrangement would cover 99.7 per cent of all property transactions.

Upon application, the Government is also prepared to issue title certificates, documents required to be produced and surrendered following transfer of a property.

On the criminal liability issue, the Government proposes that an offence is committed if a solicitor has an intention to defraud when verifying an application for registration. "Recklessness" in verifying an application alone, however, would not constitute a criminal offence. The liability of the solicitor towards his client remains a matter between themselves.

A new round of consultations on these recommendations will be conducted from September to November. Views of professional bodies most affected by the Bill, including the Law Society of Hong Kong, the Hong Kong Bar Association, the Hong Kong Association of Banks, and the Hong Kong Society of Accountants, will be sought in the consultation exercise.

The committee was also briefed on the latest progress of the Government's effort to restore dumping sites and control flytipping.

"The Inter-departmental Working Group on Flytipping Control has been effective in cleaning up dumped waste, to provide quicker and more effective responses relating to illegal dumping and financial arrangements for dumping control," said Professor Yeung.

A total of 196 dumping sites have been cleared by the departments concerned since January 1998, with action being taken at another seven sites.

With the support of other departments, the Environmental Protection Department has completed clearance of the most notorious site at Sheung Pak Nai in May this year and has removed 40,000 cubic meters of dumped waste.

Another 95 dumping sites are under investigation and appropriate enforcement or cleaning-up action will be initiated shortly.

"The working group will continue to take a more pro-active role in controlling flytipping, through extension of opening hours for public filling areas and public barging points and giving farmers instructions on how to dispose of animal carcasses."

"Other controlling measures include strengthening legislation on trip-ticket system for disposal of construction and demolition material, and circulating guidelines to assist the staff of its member departments in the clearance of illegal dumping of chemical waste materials," he added.

End/Tuesday, 31 August 1999

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