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Identification of the vendor or mortgagor of a property is the responsibility of the vendor's solicitors. The vendor or mortgagor should produce the original title deeds to their solicitors for processing the transaction. To prevent crime and protect the interest of the property owner and purchaser, the solicitor and the bank dealing with the transaction should exercise vigilance in examining the ID cards and documents presented by the vendor before proceeding or releasing the original title deeds of the mortgaged property to the vendor. Without the original title deeds, the purchaser would not pay for the property.

(i),(ii) We are not aware of any loopholes in the existing legislation and legal procedures which make it easy for a person to impersonate a property owner or conduct a fraud regarding the assignment of properties. It should be noted that conveyancing procedures are designed by solicitors and the Law Society for the purpose of protecting their clients. Nevertheless, we would consider in consultation with the Law Society and other bodies concerned whether there is a need to review the current legislation.

(iii)

Like Land Registries elsewhere, the Land Registry in Hong Kong maintains a land register which is available for public inspection. Adequate safeguards are provided in the current procedures for inspecting and altering particulars of the land register. Updating of the register is performed by well-trained registration teams under a secured Computerised Land Registration System. The particulars in the register are checked to ensure that they are exactly the same as those set out in the memorials certified to be correct by solicitors.

(b)

Please see (a) above.

(c)

On 1 April 1996, a press conference was held by the Police to warn the public about property fraud cases. The public was warned that they should take extreme care in supplying photocopies of their identity cards, rate receipts, mortgage repayment schedules, etc., to people who claimed to be interested in purchasing or renting their properties. At the same time, a report containing details of the recent cases was sent to the Hong Kong Law Society and the Hong Kong Association of Banks (HKAB) to enable them to alert their members. Arrangements are in hand to organise training sessions for these organisations and institutions on how to identify fake identity documents. The HKAB has also issued guidelines to its members on 12 April 1996 on precautionary measures. to minimise the chance of perpetuation of such frauds.

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