proposed amendments to land titles ordinance cap 585
Post on 31-Dec-2015
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Proposed amendmentsProposed amendmentstoto
Land Titles OrdinanceLand Titles OrdinanceCap 585Cap 585
The Land Registry Securing your possession Supporting an open market
Outline of PresentationOutline of Presentation
Fundamental difference between deeds and title registrationWhy make amendments before commencementScope of amendments agreedThe remaining issues:-
Whether to revise rectification rulesWhether to amend conversion mechanism
Way forwardThe Land Registry Securing your possession Supporting an open market
Title by RegistrationTitle by Registration
The Land Registry Securing your possession Supporting an open market
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 remEvidence of identity and authority still crucial
Need for Amendment BillNeed for Amendment Bill
Enactment in 2004 a statement of intent. Demand to check and, if needed, improve legislation before commencement.Difficult language and structureAmbiguityReview raised new questions about rectification scheme and practicality of conversion mechanism that must be settled.
The Land Registry Securing your possession Supporting an open market
Agreed AmendmentsAgreed Amendments
Redrafting and reorganization of LTOAddressing issues raised by bills committeeLTO to take priority over prior legislation unless specific exceptions made in LTO itselfRemove ambiguities over scope of indemnity schemeThe Land Registry Securing your possession Supporting an open market
RectificationRectification
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 ownerAvoids risk that a former owner might get less than value of the property due to the cap on indemnity in fraud cases.
The Land Registry Securing your possession Supporting an open market
Rectification : illustration of effectRectification : illustration of effect
The Land Registry Securing your possession Supporting an open market
(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).
Rectification : proposed changesRectification : proposed changes
The Land Registry Securing your possession Supporting an open market
Only allow mandatory rectification against first bona fide registered owner after fraud/void instrumentNo mandatory rectification if property has been divided up and sold on to multiple ownersRemove ambiguity that might allow claim for rectification after land has been resumed or surrendered.
Conversion : 2004 MechanismConversion : 2004 Mechanism
The Land Registry Securing your possession Supporting an open market
Commencement Conversion
Existing land stays under LRO
Eligible land converted
Caveats become Cautions
Caveats may be entered under LRO to give notice of claim to
unwritten equities
Cautions against conversion (CAC)
CAC land converts when CAC resolved
Issues with 2004 MechanismIssues with 2004 Mechanism
The Land Registry Securing your possession Supporting an open market
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
Alternative ProposalAlternative Proposal
The Land Registry Securing your possession Supporting an open market
InitialConversion
Commencement
New Land
only 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
SpecifiedDate
Indemnity for post conversion matters
Way ForwardWay Forward
Decide extent of remaining amendments after consultation closes at end of MarchPrepare draft bill and rules for consultation with Law Society Working PartyBrief LegCo in preparation for tabling of Amendment BillLaunch education and training programme.
The Land Registry Securing your possession Supporting an open market
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