HONG KONG 2004
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Land Registration
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In Hong Kong, the security given by legal title to property is at present provided by a deeds registration system operated by the Land Registry under the Land Registration Ordinance. This legislation was first enacted in 1844 and is the oldest local law still in force in Hong Kong. Around $1,000 billion in loans is currently extended to families and businesses in Hong Kong against the security of registered property. In 2004, 124 253 matters were registered.

The Land Registry has some 500 staff members. It is organised in the Urban Land Registry, serving Hong Kong Island and Kowloon, and eight New Territories Land Registries. A single document imaging centre serves all the registries and there is also a Reports on Title Office. The department is responsible for registering documents affecting land and keeping land records for public inspection. The department operates on a Trading Fund basis, under which it has to meet its operating costs out of its revenues from fees and charges, and finance investments in service improvements.

The Land Registration Ordinance provides that documents affecting land have priority according to their respective dates of registration. Registration is not mandatory but the benefit that it gives through protecting interest in land creates a strong incentive for matters to be registered.

A land document is registered by delivering it to the appropriate land registry with a memorial, which contains the essential particulars of the document, and the prescribed fee. These particulars are then entered into a computerised land register for the relevant piece of land or property. The registered land document is scanned and stored as an electronic image on an optical disc.

Each land register provides a record of transactions affecting a property, starting from the grant of the relevant government lease. The registers, memorials and related land documents are available for search by members of the public at every search office, on payment of a fee. Subscribers and customers may conduct a one-stop search for properties anywhere in Hong Kong at their own offices and at every search office in the registry through the Direct Access Services and the Cross District Search Service, respectively.

The Land Registry is implementing a strategic change plan to improve the security of title that is provided and further enhance the efficiency of its services. The plan involves re-engineering of business practices and organisation structure as well as introduction of new technology and new legislation.

The first elements of the plan were put in place in 2002. Amendments to the Land Registration Ordinance were passed and allowed the department to plan for major organisational changes. The amendment ordinance allows the department to offer a unified registration and information service for the whole territory in place of the separate urban and New Territories registries. This will be supported by a new IT system, the Integrated Registration Information System (IRIS). The main development of IRIS has been completed and testing of the system was carried out during the year. The IRIS is expected to be put into operation in February 2005. Enhanced services including shorter business processing time, fast Internet search service, convenient one-stop counter services and a Chinese language facility will be introduced to improve service quality.

Another element of the plan is the introduction of Land Titles Registration. The present deeds registration system has been in operation since 1844. To bring Hong Kong's system of land registration in line with most common law jurisdictions where land title systems apply, the Land Titles Bill was introduced into the Legislative Council and was passed in July 2004. Passage of the bill holds out the promise of title registration being introduced in Hong Kong, giving owners and purchasers increased security and improving the efficiency of conveyancing. The title register is also backed by an indemnity scheme to give greater protection against fraud or error. Before that promise can be realised, a great deal of further work is required. It is expected that at least two years will be required before commencement. Further development of IRIS is needed to support the introduction of title registration.

 

 
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