How to transfer property titles in Hong Kong

Kelvin Ng is a solicitor and partner at Yip Tse & Tang Solicitors. He answers questions about the importance of conveyancing.

What is conveyancing?

Conveyancing is the transfer of the legal title of property, such as a piece of land or a flat, from one entity to another. More broadly, it is the granting of an encumbrance, such as a mortgage or a lien. Unlike some Western countries, Hong Kong has not implemented a title registration system. Therefore, the owner’s title is not proved by a title certificate. [In Hong Kong], the solicitor representing you [as the purchaser, for example] would investigate the title by perusing all instruments or title deeds relating to the property you intend to purchase.

What are the procedures in conveyancing?

Before signing the provisional sale and purchase agreement, the estate agent would usually conduct a land search at the Land Registry to confirm the legal owner of the property [which is for sale]. After signing the provisional sale and purchase agreement, the estate agent will pass his copy to the solicitor representing you. In the meantime, you may also need to look for a bank for a mortgage to ensure that sufficient funds will be available for the purchase of the property. Your solicitor will then contact the seller’s solicitor. They will then negotiate and agree on the terms of the formal sale and purchase agreement. After [agreeing on the] terms of the formal agreement, your solicitor will arrange for you to sign it and arrange for you to pay the balance of deposit. By this stage, you will have paid the initial deposit and the further deposit, which is usually about 10 per cent of the purchase price, depending on each case. Next, your solicitor will register the formal sale and purchase agreement at the Land Registry to protect your interest in the property. At some point, your solicitor will receive the title instruments from the seller’s solicitor. The buyer’s solicitor will check the title, conduct a land search, and raise title questions to the seller’s solicitor, if necessary, for him to answer. This information exchange is to ensure that the title to the property is good. Getting good title to property can be a problem and therefore you need an experienced conveyancing lawyer. The final steps will involve registering the assignment at the Land Registry. Once done, your solicitor will give you the title deed, if there is no mortgage, and the property will be yours. In case your purchase is financed by a bank mortgage, the title deed will be passed to the bank for custody as a lending security.