1 / 12

Proposed amendments to Land Titles Ordinance Cap 585

Proposed amendments to Land Titles Ordinance Cap 585. The Land Registry Securing your possession Supporting an open market. The Land Registry Securing your possession Supporting an open market. Outline of Presentation. Fundamental difference between deeds and title registration

jacqueline-clay
Télécharger la présentation

Proposed amendments to Land Titles Ordinance Cap 585

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Proposed amendmentstoLand Titles OrdinanceCap 585 The Land Registry Securing your possession Supporting an open market

  2. The Land Registry Securing your possession Supporting an open market Outline of Presentation • Fundamental difference between deeds and title registration • Why make amendments before commencement • Scope of amendments agreed • The remaining issues:- • Whether to revise rectification rules • Whether to amend conversion mechanism • Way forward

  3. The Land Registry Securing your possession Supporting an open market Title by Registration • Act of registration marks legal change of title • ‘Title by Registration’ not ‘Registration of Title’ • Title Register, not title deeds, are proof of title • Certificate is of ‘State of Title’. • Unregistered matters (except overriding interests) have no effect in rem • Evidence of identity and authority still crucial

  4. The Land Registry Securing your possession Supporting an open market Need for Amendment Bill • Enactment in 2004 a statement of intent. Demand to check and, if needed, improve legislation before commencement. • Difficult language and structure • Ambiguity • Review raised new questions about rectification scheme and practicality of conversion mechanism that must be settled.

  5. The Land Registry Securing your possession Supporting an open market Agreed Amendments • Redrafting and reorganization of LTO • Addressing issues raised by bills committee • LTO to take priority over prior legislation unless specific exceptions made in LTO itself • Remove ambiguities over scope of indemnity scheme

  6. The Land Registry Securing your possession Supporting an open market Rectification • How to put the Register right when it is found to be in error. • Enacted LTO contains ‘Mandatory Rectification’ provision for fraud cases • Court must order rectification in favour of former owner • Avoids risk that a former owner might get less than value of the property due to the cap on indemnity in fraud cases.

  7. The Land Registry Securing your possession Supporting an open market Rectification : illustration of effect (X) (A) --- | --- (B) --- (C) --- (D) --- (E) --- (A)= former owner (X)= fraud /void instrument (B)= bona fide purchaser dealing with fraudster. In position to check and raise question about (X) (C) (D) (E) = bona fide purchasers remote from fraud. Not able to check (X).

  8. The Land Registry Securing your possession Supporting an open market Rectification : proposed changes • Only allow mandatory rectification against first bona fide registered owner after fraud/void instrument • No mandatory rectification if property has been divided up and sold on to multiple owners • Remove ambiguity that might allow claim for rectification after land has been resumed or surrendered.

  9. Commencement Conversion The Land Registry Securing your possession Supporting an open market Conversion : 2004 Mechanism Eligible land converted Caveats become Cautions Existing land stays under LRO Caveats may be entered under LRO to give notice of claim to unwritten equities Cautions against conversion (CAC) CAC land converts when CAC resolved

  10. The Land Registry Securing your possession Supporting an open market Issues with 2004 Mechanism • Problematic Registers – LR should not determine title • Priority of Caveats • Low cash flow for 12 years makes indemnity fund vulnerable during interim period and in first few years after conversion. • Uncertainty over risk to be assumed

  11. New Land only Initial Conversion Specified Date Commencement The Land Registry Securing your possession Supporting an open market Alternative Proposal All eligible land under LTO Subsisting interests still apply on transactions Claims to unwritten equities can be protected by caution Applications for upgrading allowed Indemnity for all registered matters after upgrading Indemnity for post conversion matters

  12. The Land Registry Securing your possession Supporting an open market Way Forward • Decide extent of remaining amendments after consultation closes at end of March • Prepare draft bill and rules for consultation with Law Society Working Party • Brief LegCo in preparation for tabling of Amendment Bill • Launch education and training programme.

More Related