Hong Kong to tackle potential land ownership disputes with new title deeds
Development Bureau says proposal set to take effect in two years and intended to prevent fraud
New title deeds in Hong Kong will reflect the true owner of land and property under a government legislative proposal set to take effect in two years and intended to prevent adverse possession.
Under the existing system, buyers of land and property must confirm ownership as the names shown on title deeds may not represent the real owners, thereby requiring further verification from lawyers.
Adverse possession allows a person to gain ownership of land by continuously occupying it in a manner that contradicts the owner’s rights. If the owner does not take any action then after 12 years the land belongs to the occupant.
“We will adopt a phased approach by implementing the new proposal mentioned and deal with the conversion of existing land at a subsequent stage,” the Development Bureau said on Monday.
The bureau added that the new title deed would apply to land acquired by way of land sale, by private treaty grant and by land exchange.
Under the proposal, a bona fide and innocent purchaser for valuable consideration and possession of the property will enjoy indefeasible title even in the event of transfer of property through third-party fraud.
