Transforming Hong Kong’s Land Registration System: Registration of Titles and Land (Miscellaneous Amendments) Bill

March 2025

The current land registration system in Hong Kong, governed by the Land Registration Ordinance (Cap.128) (“LRO”) since 1844, is one of the few remaining deeds registration systems globally. While it determines the priority of registered instruments, it does not guarantee property title, leading to ownership uncertainties due to title defects or unregistered interests.

Although the Land Titles Ordinance (Cap. 585) (“LTO”) was enacted in 2004 to introduce a title registration system, its implementation was delayed due to the need for comprehensive review and consultation. Consequently, a phased and parallel approach would be adopted, starting with the “New Land First” proposal (“Proposal”), which aims to implement title registration for new land first, with the conversion of existing land (“LRO land”) to follow. The Proposal received general support when presented to the Panel of the Legislative Council on 19 December 2022. The Amendment Bill, introducing the Registration of Titles and Land (Miscellaneous Amendments) Bill, is expected to be presented to the Legislative Council soon.

Definition of New Land

Section 20 of the LTO defines “new land” as land granted under a Government lease or an agreement for a Government lease on or after the appointed day (23 July 2004). It excludes land granted under short-term tenancy or land that had a Government lease or agreement before the appointed day but was subsequently altered. Essentially, new land encompasses all new Government grants since 23 July 2004, including land sales, private treaty grants and land exchanges.

Features of the Proposal

Provision of Indemnity: The title registration system will establish a Land Titles Indemnity Fund to compensate those who lose land interests due to fraud. The self-financing fund will be built up by a levy on property transfers registered under the LTO, with a proposed cap of $50 million and a levy rate of 0.014%. To prevent fraudulent applications, a Court order in the rectification proceedings is a prerequisite to claim indemnity for fraud.
Caution Mechanism: The LTO introduces a caution mechanism for all persons to register their interests or claims on the Title Register, ensuring their protection.
Mandatory Title Certificates: Currently, the Land Registry does not issue title certificates, requiring property owners to keep and produce all title documents to prove title. Under the LTO, the Title Register will be conclusive evidence of ownership, with mandatory title certificates featuring advanced security measures to prevent fraud and aid in verifying property owners' identities.
Disapplication of Adverse Possession on “New Land”: The limitation period in the Limitation Ordinance (Cap. 347) will not apply to actions to recover "new land" registered under the LTO. Claims for adverse possession will not arise for "new land" with title registered under the LTO.
Abolition of Mandatory Rectification: The Proposal disapplies the mandatory rectification rule to new land, ensuring immediate indefeasibility of title for a bona fide purchaser for valuable consideration and in possession, even in the event of fraud.

By adopting the "New Land First" proposal, Hong Kong takes a crucial step towards modernizing its land registration system with an aim to ensuring title certainty, efficiency, and alignment with other jurisdictions.