{"id":7633,"date":"2023-01-10T15:21:00","date_gmt":"2023-01-10T07:21:00","guid":{"rendered":"https:\/\/www.spacious.hk\/en\/blog\/?p=7633"},"modified":"2023-01-10T17:37:16","modified_gmt":"2023-01-10T09:37:16","slug":"a-starter-guide-to-conducting-a-land-search-in-hong-kong","status":"publish","type":"post","link":"https:\/\/www.spacious.hk\/en\/blog\/a-starter-guide-to-conducting-a-land-search-in-hong-kong","title":{"rendered":"A Starter Guide to Conducting a Land Search in Hong Kong"},"content":{"rendered":"\n

There are plenty of articles on the Internet teaching us how to do a land search at the Land Registry. Yet, very few teach us how to interpret the land register, which can be incredibly valuable to property searchers.<\/p>\n\n\n\n

It is licensed estate agents\u2019 duties to conduct land searches for their clients. Yet, buyers or tenants can also help themselves check the land registers of their interested properties. Let\u2019s check out five pieces of useful information you should know from a land search.<\/p>\n\n\n\n

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Jump to: Lease Terms<\/a> | <\/strong>Ownership<\/a> | <\/strong>Sale and Purchase Records<\/a> | <\/strong>Mortgage Records<\/a> | <\/strong>Building Orders<\/a> | FAQ<\/a><\/p>\n\n\n\n

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Every property has its own land register where you can get from the Land Registry. Each land record has four main sections – \u201cProperty Particulars\u201d, \u201cOwner Particulars\u201d, \u201cEncumbrances” and \u201cDeeds pending Registration\u201d. To ensure the property transaction proceeds smoothly, the buyer should pay attention to the following  :<\/p>\n\n\n\n

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Lease Terms<\/h2>\n\n\n\n

All lands in Hong Kong  (except for St. John’s Cathedral in Central) are owned by the SAR government. But not all of them have the same lease terms. Many people are concerned about those due to end in June 2047. The reason behind is that whether those land leases would be extended further is unknown, at least for now. This makes some buyers turn to properties with longer lease terms beyond that critical date. <\/p>\n\n\n\n

The lease term of a property  is shown under the \u201cProperty Particulars\u201d section. Simply look for keywords such as  \u201cHeld Under\u201d, \u201cLease Term\u201d and \u201cCommencement of Lease Term\u201d to get that information.<\/p>\n\n\n\n

From the land record sample below, the lease term is 999-year, starting from 1892. Assuming the date of land search is 2021, the lease will be valid for the next 870 years. In other words, the lease term’s expiry date is way beyond June 2047. As long as the Government rent is settled on schedule, the land lease will be in effect at the time of 2047.<\/p>\n\n\n\n

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It\u2019s worth noting that any land leases with an expiry date on June 30, 1997, have automatically been renewed to June 30, 2047. <\/p>\n\n\n\n

Another point to note is that the \u201cRent per Annum\u201d in the land register may sometimes be blank. The reason is that a standard formula  ( rateable value x 3%)  is applied to all land leases  (granted after May 27, 1985) to calculate government rents, regardless of regional location.<\/p>\n\n\n\n

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Find or sell properties on Spacious<\/a><\/p>\n\n\n\n

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Ownership<\/h2>\n\n\n\n

The  \u201cOwner Particulars\u201d section shows ownership details. The first left column shows the name of the owner and the next on the right shows the form of ownership.  If more than one owner’s name appears, it means that the property is not solely owned. In the third column (Memorial No.), if the word \u201cAssignment\u201d appears,  it means that the title is legally assigned. <\/p>\n\n\n\n

There are two main forms of co-ownership: \u201cJoint Tenancy\u201d and \u201c Tenancy in Common\u201d.<\/p>\n\n\n\n

\u201cJoint Tenancy\u201d means all co-owners own the whole property together, but individually they do not own an undivided share. If any of the owners should pass away, the surviving owner may have full authority to dispose of the property. <\/p>\n\n\n\n

 \u201c Tenancy in Common\u201dmeans each owner owns a distinct but undivided share of the property. No single owner is entitled to the exclusive use of the property, but each is entitled to possession and use of the whole property in common with the others. <\/p>\n\n\n\n

If the property is owned by joint tenancy, the transaction has to be made between the buyer and all of the co-owners shown in the land record.<\/p>\n\n\n\n

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Sale and Purchase Records<\/h2>\n\n\n\n

The provisional and formal Agreements for Sale and Purchase are put under the \u201cEncumbrances\u201d section.<\/p>\n\n\n\n

Although both agreements are signed during the sale and purchase process, usually it is the formal one that will be registered.<\/p>\n\n\n\n

Even if the property has already changed hands multiple times, the \u201cNature\u201d column is able to show all registered agreements. All you need is to opt for \u201cFull Search\u201d type while doing the land search, which enables the searcher to see the historical and current particulars of the property. The land search fee is $25.<\/p>\n\n\n\n

Some documents registered under the \u201cEncumbrances\u201d section are informational but not transactional, such as the Deed of Mutual Covenant or Occupation Permit, while others might impact conveyancing of the property, such as building and charging orders.<\/p>\n\n\n\n

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Find or sell properties on Spacious<\/a><\/p>\n\n\n\n

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Mortgage Records<\/h2>\n\n\n\n

Registered mortgage is shown under the \u201cEncumbrances\u201d section, represented by keywords such as \u201cMortgage\u201d, \u201cLegal Charge\u201d. Legal Charge means that the property is charged to secure repayment of money owed by the borrower to the lender (e.g. bank).<\/p>\n\n\n\n

Once all the loan amount is settled, a redemption document will be registered to discharge the mortgage. The document is named as \u201cRelease\u201d or \u201cDischarge\u201d, normally shown immediately below the relevant registered mortgage which it serves to discharge.<\/p>\n\n\n\n

Note that if an incomplete property is mortgaged, the registered mortgage is named \u201cEquitable Charge\u201d. <\/p>\n\n\n\n

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Building Orders<\/h2>\n\n\n\n

A building order is issued by the Buildings Department when a property or building has any illegal or unauthorised structures. The registered order is shown under the \u201cEncumbrances\u201d section.<\/p>\n\n\n\n

If a building order is registered against a property, the owner needs to have the affected part fixed, repaired or restored. Once the remedial work is done and approved by the authority or relevant departments, a Letter of Compliance will be issued to discharge the respective building order.<\/p>\n\n\n\n

There are several types of building orders, depending on what unsuitable structures are involved. Alteration and addition works are among the most typical types, associated with the Order Under Sec. 24(1) of the Buildings Ordinance.<\/p>\n\n\n\n

Other common building orders are:<\/p>\n\n\n\n