The Land Titles Bill was enacted by the Legislative Council on 7 July 2004. The Land Titles Ordinance gazetted on 23 July 2004 lays the foundation for the introduction of a title registration system which will bring significant improvement to the system of maintaining land records in Hong Kong and increase the ease and security with which property transactions can be undertaken.

The title registration system will bring a number of benefits. It will give greater certainty over title and simplify conveyancing. The title register will be conclusive evidence of the title. Members of the public can be certain that the registered owner is the legal

owner on searching the title register. As the title register provides an up-to-date and authoritativepoint of reference, ownership and title can be easily ascertained. It will no longer be necessary to review the historical title deeds to establish the title as at present. The new system will give greater security to property interests. An indemnity scheme will be set up to protect any innocent party who suffers loss of ownership because of an entry or omission in the title register obtained through fraud or loss due to mistake by the Land Registry staff.

All land registered under the title registration system will still be subject to overriding interests which are unregistered rights that affect land, such as rights of way, Chinese custom or customary rights and power of re-entry for breach of lease conditions. The Land Titles Ordinance limits and clearly defines what overriding interests may be asserted over property.

A "daylight conversion" mechanism will be introduced. This mechanism provides that there will be a 12-year interim period after the commencement of the Land Titles Ordinance. During this interim period, all existing land will continue to be governed by the deeds registration system under the Land Registration Ordinance while new land granted by the Government on or after the commencement date will be brought directly onto the title registration system. At the end of the interim period, each property under the deeds registration system will be converted automatically to the title registration system, unless a "caution against conversion" still stands against it or there are other outstanding instruments pending registration under the Land Registration Ordinance. "Caveats" lodged under the Land Registration Ordinance will be carried over as "cautions" under the title register.

For effective implementation of the title registration system, dedicated in-house work teams comprising legal, operational and information technology staff have been set up since October 2004 to undertake follow-up and preparatory work. This includes conducting a post enactment review of the Land Titles Ordinance; preparing several regulations and rules in support of the main Ordinance; training and public education; developing an IT system (IRIS Ⅱ) to support title registration; and preparing the work practices, procedures and guidelines to the operation of the title registration system for customers and internal staff.

The post enactment review of the Land Titles Ordinance is well underway. Drafting instructions will be prepared for an amendment bill which we expect to introduce into the Legislative Council in 2006. Instructions for the regulations are being issued. After consultation on the draft regulations the revised versions will be submitted to the Legislative Council for approval at the same time as the Land Titles Ordinance amendment bill.

The development of transitional requirements, operational practices and procedures, including the indemnity scheme is making steady progress. These are expected to be completed by the end of 2005. Planning for public education and training programmes is underway. These will commence during 2006. The requirement specifications for development of IRIS Ⅱ are being drawn up with the aim of starting development work in early 2006 and having the system ready as far as possible by the time the amendment bill and regulations are enacted. We expect this to be during 2007, subject to securing the necessary legislative time and satisfying Legislators and stakeholders that the matters raised during the debate on the enacted ordinance have been properly addressed.

Various committees comprising representatives from the Law Society of Hong Kong, the Bar Association of Hong Kong, the Hong Kong Association of Banks, Estate Agents Authority and other stakeholders, as well as staff from the Land Registry and other government departments have been set up so that concerns and views of the major stakeholders can be taken into consideration in developing appropriate policies, procedures and IT systems for title registration.

Title Registration Working Groups

The Land Registry has set up various external working committees to monitor the progress of the legal review, professional training and organizational preparation for title registration:

• The Land Titles Ordinance Steering Committee

The Land Titles Ordinance Steering Committee, comprising the Land Registrar, his senior staff and representatives of the Law Society of Hong Kong, the Hong Kong Association of Banks, the Hong Kong Mortgage Corporation Limited, the Real Estate Developers Association, Heung Yee Kuk, Consumer Council and the Estate Agents Authority, reviews and monitors the progress on amendments to the Land Titles Ordinance, making of regulations, development of IT systems and education aspects of the new system.

• The Land Titles Ordinance Review Committee

The Land Titles Ordinance Review Committee, comprising representatives from the Registry, the Law Society of Hong Kong and the Hong Kong Bar Association, suggests amendments to the Land Titles Ordinance and reviews the draft regulations.

During 2005/06, a Title Registration Education Committee, comprising representatives of the Law Society of Hong Kong, Family Law Association, the Hong Kong Association of Banks and the Estate Agents Authority, will be set up. This will devise a public information programme to publicise the new system, prepare publicity materials and co-ordinate professional education programmes.