Lessons 5 & 6 Land Registration - Now to Future...56 Decoding Land Registration Lessons 5 & 6Land Registration - Now to Future In Lesson 5, students will learn about the background

56 Decoding Land Registration

Lessons 5 & 6Land Registration - Now to Future

In Lesson 5, students will learn about the background and some general features of the proposed title registration system in Hong Kong; the similarities and differences between this proposed system and the current deeds registration system; and understand the economic, social and legal benefits and implications that this proposed system can bring to the society and citizens of Hong Kong.

Students will also learn about the views and concerns of different stakeholders on the conversion mechanism and rectification and indemnity arrangements of the proposed title registration system and the latest development regarding implementation of the title registration system. A video show is provided for the students to facilitate them to better understand this lesson .

In Lesson 6, students will take part in a role-playing exercise by assuming the roles of different major stakeholders. They will conduct a debate on the issues relating to the development and implementation of the title registration system in Hong Kong with reference to the views of major stakeholders including the Law Society of Hong Kong, the Heung Yee Kuk, the Consumer Council , the Hong Kong Association of Banks and the Real Estate Developers Association of Hong Kong. Topics for discussion include students’ preference in land registration system and the rectification and indemnity arrangements of the proposed title registration system. Through assuming the roles of different major stakeholders and leveraging on the knowledge they have acquired from the previous 5 lessons, students will be encouraged to think critically in multiple perspectives and acquire a more holistic understanding of land registration and its relationship with Hong Kong.

Introduction

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Areas of learning1. Quality of life

With the proposed title registration system, what

are the economic, social and legal benefits and

implications to the society and citizens of Hong

Kong? Which of these aspects are considered

more important by stakeholders of different

backgrounds?

2. Rule of law and socio-political participation

What are the different opinions of the major

stakeholders towards the conversion mechanism

and rectification and indemnity arrangements

of the proposed title registration system? Who

are affected under this proposed title registration

system and how? How should the different

interests of the stakeholders be balanced? What

work is involved before a new land registration

system can be implemented in Hong Kong?

3. Identity Do the needs and interests of different

stakeholders interact and affect one another?

And how? What do they tell us about the

identity and values Hong Kong citizens hold?

Learning objectives •To learn about the proposed title registration

system and its economic, social and legal

benefits and implications for Hong Kong.

•To compare the current deeds registration

system and the proposed title registration

system in Hong Kong.

•To gain a more in-depth and holistic

understanding of land registration in Hong

Kong through understanding the pros and

cons of the proposed title registration system

for Hong Kong and the views of different

stakeholders on the conversion mechanism,

rectification and indemnity arrangements

of the proposed title registration system.

•To understand the close relat ionship

between land registration in Hong Kong

and different stakeholders.

(Source: Information Services Department)


Teacher’s Guide for Lesson 5 Class activity: Preparation for stakeholders’ debate

1 The teaching kit contains information sheets

outlining some facts about the proposed

title registration system. These include the

background information, general features

and key concepts; similarities and differences

between the proposed title registration system

and the current deeds registration system;

the proposed amendments to the Land

Titles Ordinance in 2009 and the views and

concerns of different stakeholders on the

conversion mechanism, and rectification and

indemnity arrangements of the proposed title

registration system. Photocopy and hand out

the information sheets to the students.

2 Walk through the information sheets with the

students on the development of title

registration in Hong Kong, explain and

discuss with them what the title registration

system is and why it is needed for Hong

Kong; how different it is from the current

deeds registration system; what the potential

economic, social and legal benefits and

implications are; what progress has been

made in the implementation of the title

registration system; the outstanding issues

yet to be resolved; and the latest development

of title registration in Hong Kong.

3 Select ONE of the following topics for the

stakeholders’ debate in Lesson 6. Discuss

with the students in more details the issues

relating to the debate topic such as the benefits

of the proposed title registration system to

Hong Kong, the role of the Government in

the title registration system and the views

and concerns of various stakeholders on

the conversion mechanism, rectification and

indemnity arrangements of the proposed title

registration system expressed during the 2009

public consultation, etc..

Debate topics for selection:

• Should Hong Kong change from a

deeds registration system to a tit le

registration system?

• Should the “mandatory rectification”

rule be kept or removed under the title

registration system?

• Should there be a cap on indemnity

under the t i t le registrat ion system?

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Teacher’s Guide for Lesson 5

Time allocation

• Understanding the proposed title registration system and its

development and comparison between the proposed title

registration system and the current deeds registration system in

Hong Kong (20 mins)

• Class activity: Video show of the abridged version of Episode

10 of “Stories of Our Land” (10 mins)

• Discuss the case as provided in the video (5 mins)

4 Video show of the abridged version of Episode

10 of the “Stories of Our Land” in the CD-ROM to

enhance students’ understanding of the proposed

title registration system and its importance for

security of property rights.

A ten-episode television series - “Stories of Our Land”

5 Discuss the case as provided in the video.


Enactment history of the LTO • May 1988 – the then Registrar General (now Land Registrar) established a

working party to examine the introduction of title registration for Hong Kong.

• November 1994 – the Land Ti t les Bi l l (1994) was introduced into

the Legislat ive Counci l but lapsed at the end of session.

• July 2004 – the Land Titles Bill (2002) was enacted as the LTO.

Land Titles Ordinance

Information Sheet 1 for Lesson 5

Background

In Lesson 4, we have mentioned that Hong Kong will implement a title registration system to replace the existing deeds registration system, and that the Land Titles Ordinance (LTO) was enacted in 2004. Let us briefly go through the enactment history of the LTO and the development of the post-enactment review of the Ordinance.

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Post-enactment review of the LTO and preparation for title registration • When the LTO was enacted in 2004, the Legislative Council made it a condition

that the Ordinance should only be implemented after the Government had

carried out a review of a range of issues and had worked through all practical

arrangements with the Law Society of Hong Kong, Estate Agents Authority and

other relevant parties. A post-enactment review of the LTO was then conducted.

• The review has established that an amendment bill will need to be

enacted before title registration begins.

• The review has also identified potential problems and concerns regarding

the conversion mechanism and rectification and indemnity provisions.

Public Consultation on Amendments to LTO in 2009 • The Government launched a 3-month public consultation commencing

1 January 2009 on some proposed amendments to the LTO.

• After the public consultation ended in March 2009, divergent views were

received from the major stakeholders on issues relating to the conversion

mechanism and the rectification and indemnity arrangements. More details

will be covered in Information Sheet 4 for Lesson 5.

• In response to the stakeholders’ comments, the Government developed a

new proposal called the “Two-Stage Conversion Mechanism” with suitable

modifications to the rectification and indemnity arrangements in 2011.

• As at October 2012, the “Two-Stage Conversion Mechanism” is being

considered and continuing discussions with the stakeholders are being held.



Deeds Registration System vs. Title Registration System

The table below briefly lists out the differences between the existing deeds registration system in Hong Kong and the proposed title registration system, and the benefits and implications of the new system:

Features and Effects Deeds Registration System Title Registration System

Certainty of Title

•No certainty of title.

•Registration as owner does not give title.

•Title is derived from the title deeds relating to the property.

•Certainty of title.

•In general, the Title Register will be conclusive evidence of the title and members of public can be certain that the registered owner is the owner recognised in law.

Simplified property transaction procedures

•Solicitor has to check old title deeds relating to the property for not less than 15 years to ascertain title.

•Checking of the title deeds is complex and the purchaser is entitled to request the seller to provide documents and clarifications about defects in the title deeds.

•It will no longer be necessary to check the old title deeds and the purchaser can deal with the registered owner in the Title Register who is the owner recognised in law.

Indemnity

•No indemnity is payable by the Government in fraud cases.

•Government is liable for losses due to negligence of Land Registry staff in failing to register any document delivered for registration that complies with the registration requirements.

•An indemnity will be payable to compensate an innocent person who suffers loss if the entry on the Title Register was made or omitted because of fraud which results in loss of ownership or if the loss was due to mistake or omission by Land Registry staff.

•Indemnities for fraud cases will be funded by levies collected upon registration. Indemnities for mistake or omission caused by the Land Registry will be borne by the Registry.

Completeness of register

•There may be interests that affect a purchaser’s ownership of a property but are not registered in the land register.

•The Title Register is more complete and accurate. In general, purchasers acquiring properties with value paid and registered in the Title Register will not be affected by unregistered interests.

Compatibility with standards of

modern society

•Deeds registration has been or is being replaced by title registration in most common law jurisdictions.

•Title registration is in line with the best land registration practices in most common law jurisdictions.

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Quick Reference

Unregistered interestsUnder the existing deeds registration system, a land interest does not need to be registered in order to carry legal effect. As such, some people may choose not to register such an interest. For example, a couple may acquire a property and have it registered in the name of (say) the wife only, even though both of the husband and wife have contributed towards the payment of the mortgage of the property. In this situation, the husband is considered to have an unregistered interest in the property. Under the LTO, however, such an interest would not be recognised unless it is registered.

The benefits of title registration system to Hong KongIn short, the proposed title registration system will bring the

following benefits to Hong Kong:

Simplify property transaction procedures. There will no longer be the

need to review old title deeds to ascertain title. The Title Register is

conclusive evidence of the title. This will help shorten the time required

to complete property transactions and reduce the workload required

of the practitioners, in particular of the solicitors, saving both time and

cost. It will make the property transaction procedures more efficient.

Provide certainty and greater security to title. Owner enjoys indefeasible

title to property. In general, unregistered interests will be unable to affect

registered title to property. This can help safeguard and solidify property

owner’s rights and interests.

Place Hong Kong on par, in respect of land registration, with many other

common law jurisdictions, which are already using the simpler and

more efficient title registration system. This will help promote economic

activities and make Hong Kong more competitive as well.

1

2

3

Are there any other benefits that title registration will bring to Hong Kong?

Areaof interest ?

?



General Features of LTO in Hong Kong

I. Conversion mechanism under LTO

With the introduction of the LTO, existing land

registers kept under the deeds registration

system would need to “migrate” to the new title

registration system. The process involved is

known as the conversion mechanism.

The conversion mechanism under the LTO

(“the 2004 conversion mechanism”) is an

automatic one commonly referred to as the

“daylight conversion mechanism”.

From the commencement of the LTO, newly

granted land (“new land”) will immediately

come under the title registration system, while

existing land will remain under the current deeds

registration system until the expiry of 12 years

from the commencement of the LTO. During

the 12-year period, persons with unregistered

interests may register their claims for the interests

against the properties concerned in order to protect

them after the conversion. Upon expiry of the 12-

year period, all the existing land in general will be

converted automatically to come under the title

registration system.

It should be noted that as the conversion

process is automatic, there will be no checking

of individual registers to verify whether an owner

whose name appears on a Land Registration

Ordinance register is indeed the true owner.

This automatic conversion mechanism is unique

among jurisdictions that practise title registration.

While it is a simple and efficient means to convert

a large number of existing land registers to the new

system, it may have potential implications on the

level of indemnity payment for fraud cases since no

title checking will be conducted before conversion

(see discussion below on indemnity).

The LTO contains 104 sections and has introduced a number of new concepts to the land registration system. It may not be easy to understand all the new concepts and provisions of the LTO. Let us focus on 3 major elements of the LTO, namely, conversion mechanism and rectification and indemnity arrangements. The latest development of the consultation with the major stakeholders on the amendments to the LTO is basically related to these 3 major elements.

From Information Sheets for Lesson 4, you already have some basic ideas on these 3 major elements. We are going into further details on how these elements operate under the LTO.

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II. “Mandatory Rectification” Rule In layman terms, the “mandatory rectification”

rule enables an innocent former owner who lost

his property title because of fraud to get back his

title. This is in line with the existing common law

practice under the deeds registration system.

Under s.82(3) of the LTO, the Court shall make

an order of rectification in favour of a former

registered owner (if he is innocent), irrespective

of whoever is currently the registered owner, on

the ground that he lost his title by or as a result

of fraud and the Court is satisfied that:

(1) the relevant entry in the Title Register by

which he lost his title was obtained through a

void instrument or as a result of a false entry

in the Title Register;

(2) this former owner was not involved in the

fraud; and

(3) this former owner did not substantial ly

contribute to the fraud.

III. Indemnity The LTO provides indemnity arrangements

for an innocent person who suffers a loss

due to an entry in the Title Register (a) which

was obtained or omitted by way of fraud and

had resulted in loss of ownership or (b) which

was the result of any mistake or omission

of Land Registry staff. If it is the latter, the

Land Registry will be responsible for paying

indemnity and the amount to be paid will be

the full extent of the loss suffered. If it is the

former, the indemnity will be borne by the Land

Titles Indemnity Fund (Indemnity Fund) and

an upper limit has been set on the amount of

indemnity to be paid. This is what we called the

“cap on indemnity”. The cap was set at HK$30

million when the LTO was passed in 2004.

The cap on indemnity is of concern because

it relates to the financial burden that the

Indemnity Fund would have to bear. As the

Indemnity Fund is to be funded by a levy

which will be imposed on property owners and

other land interest holders upon applications

for registration, and given that conversion

of existing land registers to the title system

will be automatic without title checking,

the Government considers it necessary to

maintain a cap on the indemnity in fraud cases

in order to keep the levy rate at an affordable

and acceptable level.

For similar reasons, no indemnity will be

payable if the fraud happened before the date

of conversion (i.e. the fraud occurred when

the land was still under the deeds registration

system), as it would be impracticable to examine

all the existing land registers for any potential

fraud before their conversion to the title system.

Indemnifying such pre-conversion fraud would

subject the Indemnity Fund to unpredictable

risks and financial burden, which would pass on

to the property buyers through increased levy.

3 Major Elements



Development on Implementation of Title Registration System in Hong Kong after Enactment of LTO

Why changes are needed for theconversion mechanism; and rectification and indemnity provisions?The post-enactment review of the LTO has

identified that the 2004 conversion mechanism,

together with the rectification and indemnity

provisions under the LTO will give rise to a

number of issues. The major issues are:

a. Registers with unclear ownership

There are cases where ownership of property

cannot be determined from the land register. For

example, there are two or more land registers of

the same property with different owners or more

than one chain of ownership in the same land

register. Under the LTO, there is no mechanism

for the Government to withhold these cases from

conversion or to deal with the consequences if they

were converted automatically. The Government

may be liable for the loss caused to any parties

if the Title Register is not correct.

b. Uncertainty of Title Register and hindrance on

ease of property transactions

The “mandatory rectification” rule has the benefit

of restoring the property title of an innocent

former owner who has lost his title due to fraud.

This means, however, that although the Title

Register shows who the current registered owner

is, purchaser of the property from the current

registered owner still runs the risk of being deprived

of the property due to fraud that happened before

his purchase of the property and the property may

be given back to an innocent former registered

owner of the property by the Court. This may

I. Three-month public consultation conducted in 2009In January 2009, after the post-enactment review of the LTO, the Land

Registry launched a three-month consultation to invite views from the public

and stakeholders on some proposed changes to 2 aspects of the LTO –

(a) the conversion mechanism and (b) the rectification and indemnity

provisions.

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undermine the certainty of title that the LTO

primarily aims to achieve, as a title shown on a

register may still be subject to the risk of being

rectified and hence “defeasible”. Thus a prudent

purchaser may still want to check old title deeds

in order to be better assured against that risk.

c. Impracticability of applying

“mandatory rectification” rule

Under the following situations, it may not be

practicable to give the property back to the

innocent former registered owner:

(1) After the occurrence of fraud, before an

application for rectification is made, the

property has been resumed or surrendered

to the Government for public purpose. The

previous land title will be extinguished upon

the resumption/surrender and cannot be

rectified; and

(2) A f te r the occur rence o f f raud, be fore

an application for rectification is made,

the property has been divided up

or redeveloped and sold to multiple

purchasers. Displacing and compensating

multiple innocent current registered owners

in such case is likely to cause greater

disruption and incur greater liability to the

Indemnity Fund than giving indemnity to

the innocent former registered owner.

In view of the above issues, the Government

proposed modifications to the 2004 conversion

mechanism for public consultation in 2009.

Under the modified proposal, an existing

property registered under the Land Registration

Ordinance (LRO) will automatically come under

the title registration system about 3 years after

the commencement of the LTO, meaning that

all transactions relating to the property will be

effected in the new manner prescribed under

the LTO. However, this property will not enjoy

the full protection of the title registration system

until the property owner has successfully applied

to the Land Registry for “upgrading” of title 12

years after the automatic conversion. This

upgrading process seeks to prevent registers

with unclear ownership from full conversion.

Some changes have also been proposed to

the rectification and indemnity provisions to

enhance the certainty of title and to deal with

situations where it is impracticable to apply the

“mandatory rectification” rule.

Why Change?


Major stakeholders’ views received during or after the public consultation in 2009The table below lists the views of the major stakeholders received

during or after the public consultation in 2009 on the modifications of the

conversion mechanism, and proposed changes to the rectification and

indemnity arrangements:

The Law Society of Hong Kong Heung Yee Kuk

Conversion Mechanism •2004 conversion mechanism should be maintained.

•Supported automatic conversion.

•Did not support any conversion mechanism that required application and fee.

•Concerned about whether the Government could handle the huge number of applications for upgrading.

Rectification and Indemnity Arrangements

•Keeping the “mandatory rectification” rule would encourage buyers to continue checking old title deeds in order to be better assured against the risk of being displaced by innocent former registered owner due to fraud. This would defeat the purpose of implementing the title registration system as there will be no certainty of title.

•“Mandatory rectification” rule should be removed, and immediate indefeasibility of title should be given to current registered owners.

•The cap on indemnity should be removed. The bar on indemnity for fraud cases that happened before conversion should also be removed.

•“Mandatory rectification” rule should be kept. Otherwise, innocent property owners might become worse off under the new title registration system especially if the loss could not be fully compensated (as there will be a cap on indemnity in case of fraud).

•Supported the principle of “back to the original owner” so that land obtained through fraud should be restored to the original owner.

•Ancestral land holdings were of great importance to indigenous villagers in the New Territories, the loss of which could not be compensated financially.

•Innocent former owner should be fully indemnified according to the value of the property without any cap if he suffered loss of property as a result of fraud.

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Consumer Council The Real Estate Developers Association of Hong Kong

The Hong Kong Association of Banks

•Preferred the 2004 conversion mechanism.

•Did not support commencing title registration for new land while the conversion mechanism for existing land was still undecided.

•Had concern over the cost and time of processing applications for upgrading.

•Supported the 2004 conversion mechanism.

•Had concern about the time and cost for processing applications for upgrading which would affect sale of the properties by the mortgagee banks.

•Fraud that happened before conversion should also be indemnified so as to better protect the rights of property owners.

•Not only would property owners suffer loss in fraud cases, a person might also suffer losses of other kinds of rights or interests in land due to fraud. Such losses should also be covered.

•Supported a system of indefeasible tit le without the “mandatory rectif ication” rule and a cap on indemnity.

•If the cap on indemnity was to be preserved, the “mandatory rectification” rule should be kept in order to preserve the interests of innocent former registered owners.

•Worried that if indemnity would only be provided for loss of ownership cases, banks that have provided mortgage to property owners (the mortgagee banks) would not be able to claim indemnity.

•Concerned that the apportionment of indemnity money among multiple claimants for indemnity would not apply to mortgagee banks.

Quick Reference

Immediate indefeasibilityUnder the principle of “immediate indefeasibility”, the Title Register should be conclusive evidence of ownership provided that the owner does not obtain his title through fraud, has paid valuable consideration for and is in possession of the property.


II. Latest DevelopmentIf we examine the views expressed by

stakeholders carefully, we will notice that –

(1) Stakeholders generally favour the retention

of the automatic conversion mechanism

under the LTO. They do not support the

idea of introducing some form of approval

mechanism before existing land registers can

be converted to the title system.

(2) Some stakeholders call for the removal of

the cap on indemnity. As discussed earlier,

however, this would pose tremendous risks

to the Indemnity Fund under the automatic

conversion mechanism that stakeholders

generally support.

(3) Some stakeholders are in favour of retaining

the “mandatory rectification” rule under

the LTO, while others consider that the

rule should be replaced by the principle of

immediate indefeasibility. In other words,

the crux of the issue is whether an innocent

former owner or an innocent purchaser

should keep the property in case of fraud.

The results of the public consultation suggest

that stakeholders have different and at times

even conflicting views on some of the major

elements in the LTO. To address and balance

these divergent views and concerns, a new

proposal with two stages of automatic conversion

(“Two-Stage Conversion Mechanism”) and

suitable modifications to the rectification and

indemnity arrangements were introduced in

2011 for major stakeholders’ consideration.

Under the new proposal, new land will come under

the title registration system with “immediate

indefeasibility” upon commencement of the

LTO. For existing land under the LRO, the

conversion process will involve two stages of

automatic conversion.

After a preparation period from the date of

commencement of the LTO, eligible existing

land will be automatically brought under the

title registration system on a specified date, i.e.

undergo the first stage of conversion (primary

conversion and land with primary title). Within

12 years from the primary conversion (primary

conversion period), land with primary title will

remain subject to subsisting interests affecting

the land. New transactions and interests will

be effected in the form and manner prescribed

under the LTO. Within the primary conversion

period, apart from certain exceptions as

mentioned on page 67, the “mandatory

rectification” rule will be kept. Indemnity with a

cap will be payable to a displaced owner due to

fraud which happens after primary conversion.

The second and final stage of conversion will

take place 12 years after primary conversion.

A registered owner who wishes to keep his

property within the primary conversion stage

can choose to register an “Opt-Out Caution”

against his own property during the primary

conversion period.

After the primary conversion period, land

with primary title will automatically undergo

the second and final stage of conversion (full

conversion) except for some circumstances

(such as land subject to an “Opt-Out Caution”

registered by the owner, a “Land Registrar’s

Caution against full conversion” registered by

the Land Registrar because of indeterminate

ownership or a “Warning Notice” registered by

a holder of subsisting interests, etc.). Upon full

conversion, immediate indefeasibility will apply.

Indemnity with a cap will be payable to an innocent

owner who lost his title due to fraud which happens

after primary conversion.

Initial responses from the major stakeholders are

positive. As at October 2012, consultation with the

major stakeholders on the “Two-Stage Conversion

Mechanism” is in progress.

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Bibliography

• Bills Committee on Land Titles Bill, Comparison of Deeds Registration and Title Registration [LC Paper No. CB(1)1357/02-03(02)] (March 2003), http://www.legco.gov.hk/yr02-03/english/bc/bc03/papers/bc030408cb1-1357-2e.pdf

• Bills Committee on Land Titles Bill, The Consumer Council’s Submission to the Bills Committee on the Land Titles Bill [LC Paper No. CB(1)1517/02-03(03)] (22 April 2003), http://www.legco.gov.hk/yr02-03/english/bc/bc03/papers/bc030512cb1-1517-3e.pdf

• Bills Committee on Land Titles Bill, Submission dated 2 April 2003 from The Real Estate Developers Association of Hong Kong [LC Paper No. CB(1)1517/02-03(01)], http://www.legco.gov.hk/yr02-03/english/bc/bc03/papers/bc030512cb1-1517-1e.pdf

• Bills Committee on Land Titles Bill, Submission dated 21 May 2003 from the Hong Kong Association of Banks [LC Paper No. CB(1)2207/02-03(01)], http://www.legco.gov.hk/yr02-03/english/bc/bc03/papers/bc030717cb1-2207-1e-scan.pdf

• Bills Committee on Land Titles Bill, Summary of eight submissions (Position as at 7 May 2003) prepared by LegCo Secretariat [LC Paper No. CB(1)1604/02-03(01)] (7 May 2003), http://www.legco.gov.hk/yr02-03/english/bc/bc03/papers/bc030512cb1-1604-1e.pdf

• The Land Registry, Consultation on Amendments to Land Titles Ordinance, http://www.landreg.gov.hk/consultation/index.html

• The Land Registry, Title Registration, http://www.landreg.gov.hk/en/title/title.htm

• Land Titles Ordinance (Cap. 585), http://www.legco.gov.hk/yr03-04/english/ord/ord026-04-e.pdf

• Legislative Council Panel on Development and Panel on Administration of Justice and Legal Services, Joint Subcommittee on Amendments to Land Titles Ordinance, Amendments to the Land Titles Ordinance [LC Paper No. CB(1)838/10/11(01)] (December 2010), http://www.legco.gov.hk/yr10-11/english/panels/lto/papers/lto1223cb1-838-1-e.pdf

• Legislative Council Panel on Development and Panel on Administration of Justice and Legal Services, Joint Subcommittee on Amendments to Land Titles Ordinance, Amendments to the Land Titles Ordinance Progress Report [LC Paper No. CB(1)2434/10-11(01)] (June 2011), http://www.legco.gov.hk/yr10-11/english/panels/lto/papers/lto0616cb1-2434-1-e.pdf

• Legislative Council Panel on Development and Panel on Administration of Justice and Legal Services, Report of the Joint Subcommittee on Amendments to the Land Titles Ordinance [LC Paper No. CB(1)51/11-12](14 October 2011), http://www.legco.gov.hk/yr11-12/english/panels/lto/reports/ltocb1-51-e.pdf

Suggested key issues to think aboutOn Quality of life:• How can title registration contribute to economic

development and improve our quality of life?

• Would the implementation of title registration system contribute more to economic development and improving our quality of life than the current deeds registration system?

On Rule of law and socio-political participation:• What are the implications of the outcome of the

public consultation to the amendments to the LTO?

• What are the roles of the Government and stakeholders in taking forward the implementation of the title registration system in Hong Kong? How can they further work to help implement the title registration system in Hong Kong?

On Identity:• Would the implementation of the title registration

system affect the identity and sense of belonging of Hong Kong people? If yes, how?


Teacher’s Guide for Lesson 6 Class activity: Stakeholders’ debate

1 The teaching kit contains information sheets

on the guidelines for the stakeholders’

debate and the highlights of Lessons 1 to 5.

Photocopy and hand out both sheets to the

students. Brief them on the guidelines for

the stakeholders’ debate. The highlights

of Lessons 1 to 5 can be distributed to the

students for their quick reference which

may be useful to recall the knowledge they

have acquired and for their preparation of

the debate.

2 Split the students into 3 groups. Randomly

give out a stakeholder card contained in the

teaching kit to each group.

Time allocation

• Preparation for stakeholders’ debate (10 mins)

• Class activity: Stakeholders’ debate (20 mins)

• Teacher’s comments on the stakeholders’

debate and wrap up and conclusion (5 mins)

3 Each stakeholder card contains the information

of a stakeholder which the students are to

represent for their group in the upcoming

stakeholders’ debate. These stakeholders

include a solicitor, a member of the Heung

Yee Kuk, a Government official of the Land

Registry, a representative of the Consumer

Council, an officer representing a local bank in

Hong Kong and a property owner / purchaser.

4 U p o n r e c e i v i n g t h e s t a k e h o l d e r c a r d ,

each group will have 10 minutes to study

the information sheets to understand the

background and the views/concerns of the

stakeholder they represent. Each group

will be asked to write down their views

and prepare for the stakeholders’ debate.

To facilitate discussion, each group can

be further split into 2 sub-groups. After

discussion, views of these 2 sub-groups

representing the same stakeholder can be

consolidated for the debate.

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5 The debate will last for 20 minutes. 3 students

from each group will represent the group for the

debate. You may moderate the debate, manage

time and put forward the topics for debate.

6 After finishing the debate, you may comment

on the strengths and weaknesses of

the representatives’ viewpoints, and

associate the arguments with the key

concepts delivered in previous lessons to

further consolidate the understanding of

the students. Please note that a definite

resolution is not the goal of debate.

Instead, you may inspire and encourage the

students to think critically and in multiple

perspectives.

7 Wrap up and conclude the lesson after the

debate.


Stakeholder Cards for Lesson 6

Some questions to facilitate the students to think about their stakeholder’s views:• What and why do I agree with the proposition?

• What and why don’t I agree with the proposition?

• Can I achieve my goals (those of the stakeholder’s role which I represent)?

• How can the goals and needs of the others (those of the other stakeholders’

roles), if they are different from mine, be accommodated?

• What more can be done / should not be done so that my interests

can be better protected?

• What else do I need to know about my stakeholder’s role and its work?

Below are the stakeholder cards for use for the stakeholders’ debate. There are 6 cards available for selection. The teacher can either assign a stakeholder card for each group to represent or let the students draw their stakeholder card from the stack. Based on the selected debate topic, the students in each group can prepare to play the role of the stakeholder they represent accordingly.

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Who are you?• I am a solicitor.

What do you do?• My work involves helping my clients ascertain

property titles, draft, check and reviewthe documents relating to the propertytransactions such as Agreements for Saleand Purchase and Assignments and preparethese documents for execution by my clientsand registration at the Land Registry.

What are your goals?• To make sure that my clients’ rights

are properly protected during propertytransactions, particularly in making surethat the titles they acquire are good andproblem-free.

• To maintain a balance between myamount of work and liability.

Who are you?• I am a member of the HYK.

What do you do?• The HYK is a statutory body set up to

promote the welfare of the people of theNew Territories (NT).

What are your goals1?• To promote and develop mutual

co-operation and understanding amongthe people of the NT.

• To promote and develop co-operation andunderstanding between the Governmentand the people of the NT.

• To advise the Government on social andeconomic developments in the interestsof the welfare and prosperity of the peopleof the NT.

• To encourage the observance of all suchcustoms and traditional usages of thepeople of the NT as are conducive to theirwelfare and to the preservation of publicmorality.

Solicitor

Member of the Heung Yee Kuk (HYK)

(Please refer to the views and concerns of the Law Society of Hong Kong as discussed in Information Sheet 4 for Lesson 5.)

(Please refer to the views and concerns of the HYK as discussed in Information Sheet 4 for Lesson 5.)

Reference1. Heung Yee Kuk Ordinance (Cap. 1097)

https://www.elegislation.gov.hk/hk/cap1097!en@2015-04-01T00:00:00


Who are you?• I am an officer of the Land Registry.

What do you do?• One of my tasks is to ensure that Hong

Kong’s land registration system continues to meet the development of Hong Kong and the needs of its citizens.

What are your goals?• To strike a balance among the interests of

the stakeholders in the reform of the land registration system in Hong Kong.

• To ensure that the views and opinions of our stakeholders on our proposed new policies are heard and their reasonable demands are accommodated by the new

policies as far as practicable – after all, the new policies are intended to serve the stakeholders and the public better.

• To take a holistic view and ensure that the welfare of the people of Hong Kong is promoted.

• To ensure that Government money is spent wisely and prudently, and that the Indemnity Fund which is funded by levies contributed by property buyers, is not subject to undue financial risks or burden.

• To keep pace with Hong Kong’s economic and social development and to align the land registration system in Hong Kong with the best practices of overseas jurisdictions.

Who are you?• I am a representative of the Consumer Council.

What do you do1?• I collect and disseminate information

concerning goods and services; encourage businesses and professional associations to establish codes of practice to regulate the activities of their members; and take action and provide advice to the Government or to any public officer as justified by information in my possession.

What are your goals?• To advocate for consumer interests, so

that they may enjoy an effective and secure land registration system, simplified property transaction procedures, reduced costs relating to the property transactions, etc..

Government official of the Land Registry

A representative of the Consumer Council

(Please refer to the views and concerns of the Consumer Council as discussed in Information Sheet 4 for Lesson 5.)

Reference1. Consumer Council, Functions of the

Consumer Council, http://www.consumer.org.hk/website/ws_en/profile/mission/mission.html

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Who are you?• I am a property owner / purchaser.

What are your goals?• To have my rights and interests of property

ownership better safeguarded so as to improve my quality of life.

• To enjoy a user-friendly, secure and efficient land registration system.

• To have simple property transactions procedures so as to minimise the resources required (e.g. time, cost, etc.) during property transactions.

Property owner / purchaser (specify which one to represent)

Who are you?• I am an officer of the mortgage division of a

bank in Hong Kong.

What do you do?• One of the businesses of my bank is to

provide mortgage services to property purchasers.

What are your goals?• To ensure that our rights, interests, benefits

and investment in the property market are well protected and safeguarded by the law and Government policies.

• To enjoy a user-friendly, secure and efficient land registration system.

• To have simple conveyancing procedures so as to achieve lower costs relating to property transactions as a whole.

An officer representing a local bank in Hong Kong

(Please refer to the views and concerns of the Hong Kong Association of Banks as discussed in Information Sheet 4 for Lesson 5.)



Guidelines for stakeholders’ debate

1 Divide the students into 3 groups. Each group is to select 3

representatives to debate on behalf of the group. Other

members of the group can sit behind the representatives

to support them (e.g. provide supplementary information).

2 Each group wi l l have 3 minutes to in t roduce the ro le of

their stakeholder and present their views on the topic selected

in Lesson 5 (i.e. a total of about 9 minutes for all 3 groups).

Supplementary materials from the previous lessons should

be provided as proof to support the arguments in the debate.

3 After that, the floor will be opened up for discussion (for about

11 minutes). Groups can raise questions to another group

(e.g. Group A can question/challenge Group B on their

position). The teacher may also raise questions or issues

for further discussion by making references to the key

concepts and materials covered in the previous lessons

to further consolidate the understanding of the students.

4 The teacher will consolidate the views in the debate and steer

the groups towards conclusion (for about 5 minutes).

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Highlights of Lessons 1 to 5

In Lessons 1 & 2• Hong Kong’s land history during different

periods of time.

• The functions of land registration since the

1840s till today, including how the land

registration system has contributed to the

quality of life of Hong Kong’s citizens, how

it has evolved closely, addressing the needs

and identity of Hong Kong people during the

respective periods of time; and how it has

helped Hong Kong establish its rule of law.

• The features and functions of various

distinctive land registration documents which

are employed to tie in with the big tides of

changes of Hong Kong.

In Lessons 3 & 4• The process of property transaction, the

scale of Hong Kong’s property market and its

contributions to Hong Kong’s economy.

• The importance of land registers and what it

says about a property.

• The operations of Hong Kong’s land registration

system, in particular the roles, functions and

responsibilities of the Land Registry.

• The contributions of Hong Kong’s land

registration system towards our economic

and social development, and the benefits

they bring to Hong Kong’s citizens.

• The land registration systems of 3 other common

law jurisdictions, including England and Wales

of the United Kingdom, New South Wales of

Australia and Singapore, and their similarities

and differences from Hong Kong’s system.

In Lesson 5• The main features and effects of the current

deeds registration system and the proposed

title registration system in Hong Kong.

• The economic, social and legal benefits and

implications of the proposed title registration

system for Hong Kong.

• The views of different stakeholders on the

modifications of the conversion mechanism

and rectification and indemnity arrangements

in the public consultation conducted in 2009.

• The c lose re la t ionship between land

reg is t ra t ion in Hong Kong and the var ious

s takeholders.

We have acquired the following knowledge in the previous 5 lessons:


Suggested key issues to think aboutOn Quality of life:• What are the implications of the arguments put

forward by different stakeholders on the conversion mechanism and rectification and indemnity arrangements of the proposed title registration system on our quality of life? Which aspects of arguments are seen to be more important by stakeholders in improving our quality of life?

On Rule of law and socio-political participation:• How do the needs and interests of different

stakeholders interact and affect one another in the promotion of the rule of law?

• How should different interests of the stakeholders be balanced?

On Identity:• Do the roles of different stakeholders reflect the identity

issue of Hong Kong people? If yes, how?

Documents

Lessons 5 & 6 Land Registration - Now to Future...56 Decoding Land Registration Lessons 5 & 6Land Registration - Now to Future In Lesson 5, students will learn about the background