The experience of Hong Kong in developing a
program for conversion of existing deeds-based
registration to a title-based system, and current status
(‘Daylight’ conversion approach)
Mr. John Davison
(Hong Kong)
Background of John Davison
• John Davison is a solicitor admitted in Queensland, England and Wales
and Hong Kong. He joined the Registrar General’s Department of the
Hong Kong Government in 1972. The department was responsible
among other things for the Land Registry. He was a member of the
British Government’s team which negotiated the Joint Declaration on the
Future of Hong Kong with China in 1984, being responsible for land
issues.
• He joined private practice in Hong Kong in 1987 and is a partner in the
firm of Kao, Lee & Yip.
• He was a member of the Registrar General’s Working Party on Title
Registration from 1988 to 1994 and thereafter a member of the Law
Society of Hong Kong’s Working Party on the various Land Titles Bills
up to date. He was a consultant to the Land Registrar on what became the
Land Titles Ordinance 2004 from 2002-2004.
Hong Kong Background
Hong Kong background
• 1841 cession of Hong Kong Island to Great
Britain
• 1860 cession of Kowloon Peninsula
• 1898 lease of New Territories (“NT”) for 99 years
to 1997
• 1st July 1997 – Hong Kong SAR
Legal system
• Common Law and Hong Kong Ordinances
continue
• Land system Government leasehold
Facts relevant to land registration
• Area of Hong Kong – 1,103 sq. km (about 400
sq.m.)
• Population – near 8 million
• 50%+ live in NT
• About 40% population live in Government
housing
• All varieties of land – highly urbanized, high
density commercial and residential areas down to
rural and village land, including ancestral land
• 2008/09 year 593,328 documents lodged for
registration in Land Registry
• Yearly number varies from about 500,000 to about
800,000
• Mostly sale and purchase agreements, assignments,
legal charges
• Number of individual titles approx. 2.8m at end of
June 2010
Present Land Registration System
Current land registration system
• Land Registration Ordinance, (Cap.128); 1844 –
oldest piece of Hong Kong legislation still extant
• Mainly followed the Van Diemen’s Land Act 1827
(Imperial) (now Tasmania)
• Main principles little changed since 1844
Section 2(1) : The Land Registry shall be a public office for the
registration of deeds, conveyances, and other instruments in writing, and
judgments; and all deeds, conveyances, and other instruments in writing,
and all judgments, by which deeds, conveyances, and other instruments in
writing, and judgments, any parcels of ground, tenements, or premises in
Hong Kong may be affected, may be entered and registered in the said
office in the prescribed manner.
• Priority by date of registration – deemed to be date
of lodgment if lodged within one month after
execution – otherwise date of actual registration
• Form of register – divided into Ownership
Particulars, Encumbrances (including agreements
for sale and purchase)
• Registers in book form then cards, now
computerized
Land Registry organization
• There is one land registry for the “urban area”.
• Originally two in NT, now 8 district registries in
NT
• Urban area registry operated by Registrar General’s
Department (“RGD”) until 1993 when Land
Registry set up as a trading fund
• NT registries operated by New Territories
Administration until taken over by RGD in late
1970’s, early 1980’s.
• NT registers not as well kept as those in urban area
Progress of Reform
Process of change to title registration in Hong
Kong
• May 1988 – November 1994 : Government
Working Party on Title Registration chaired by
Registrar General
• Early 1990 Working Party recommended titles
registration system and accepted by Hong Kong
Government
• 1994 – First blue bill introduced into Legislative
Council
• Second blue bill
•
•
•
•
•
Third blue bill
Fourth blue bill
2004 Land Titles Ordinance (“LTO”) passed
Not yet in operation
2005-present – LTO reviewed and amendments
discussed
• 2010-2011 amendment bill in Legislative Council
Mass Conversion –
Mechanisms Considered
Mass conversion mechanism
Mechanisms tried in various blue bills
• Midnight conversion
• Gradual conversion with voluntary conversion
variation
• Provisional title with voluntary conversion to
absolute
• Daylight conversion
Midnight conversion
In first Bill
Midnight on appointed day
LRO
LTO
Timeline
LTO
Appointed
passed
day
Gradual conversion
• After appointed day, all new (virgin) land and
surrender and regrant land subject to LTO
• Existing titles (LRO land)
- application for conversion to be made on first assignment for value
- voluntary conversion allowed
- titles would have to be checked and approved by or on behalf of Land
Registrar
- two systems running in parallel – LRO continuing to apply to LRO land
- Danger of 1st and 2nd class land with corresponding values
LTO
LRO
LRO
Timeline
open-ended LTO
Appointed
passed
day
no longstop date
Provisional title  absolute title
After appointed day, all new (virgin) land and surrender
and regrant land subject to LTO
midnight conversion
- to provisional title
LTO
LRO
LRO
Timeline
open-ended Provisional  Absolute
LTO
title
appointed day
title
no longstop date
Daylight Conversion
Daylight conversion
After appointed day, all new (virgin) land and surrender
and regrant land subject to LTO
Midnight -
Daylight -
no conversion
automatic conversion
no change
LTO
LTO new land
most remaining LRO land
no longstop date for
remaining LRO land
LRO
LRO
LRO
Timeline
LTO
passed
Appointed
(incubation period)
12 years after appointed day
day
LRO land remains under LRO till year 12 and some continue beyond 12 years
Caution against conversion
•
•
•
•
•
•
•
•
Can be registered under LRO by person claiming title to or beneficial interest in
land
Can be registered up to 12th anniversary of appointed day
Lasts for 12 months – can be extended by High Court only once for 12 months
Then cautioner must take out court proceedings and register his claim as lis
pendens
Caution can be removed by order of High Court on application by person with
interest in the land
Registrar can remove in certain circumstances
Compensation for wrongful caution
Land subject to caution will not be converted on 12th anniversary – still subject to
LRO
Registrar may issue inhibition or caution against
conversion – expect will be used mainly in NT
Earlier Mass Conversion
in New Territories
Previous mass conversion in NT
Land settlement period 1900-1905
• 1902 simple Torrens system type land titles ordinance
passed for NT but never brought into operation
• Land survey by surveyors of Government of India
• Demarcation Districts (“DD”)
• Land Court
• Claims to land under Ch’ing Dynasty law on district by
district basis
• Assessed by Chinese law experts
• Awards of Land court became schedules to Block Crown
leases
• 350 DDs, 350 Block Crown leases