TNAG-1735-FCO40-2448-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 99

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HONG KONG LEGISLATIVE COUNCIL — 1 June 1988

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A vendor is usually required to produce, in order to prove his title to the land being sold, the Crown lease and all other relevant documents for a period of at least 25 years before the contract for sale. Clause 5(a) of the Bill reduces this period to 15 years because the longer period causes practical problems. In England, the period is 12 years. Members of the ad hoc group as well as practising conveyancers therefore welcome this reduction.

In considering the reduced period of 15 years, my group noted that for actions to recover land, the statutory limitation period is 20 years. In practical terms, this means that a purchaser who relies on the reduced period of 15 years may not be fully protected. We therefore recommend that the limitation period in respect of recovery for land be reduced to 12 years. The Administration is receptive to our suggestion and is considering amending the Limitation Ordinance as a matter of priority. We look forward to the early removal of this inconsistency.

Vendors have at times found it difficult to produce an original power of attorney where the power was given some considerable time before the conveyancing transaction. Clause 5(c) amends the law so that, unless the contrary intention is expressed, the vendor is only obliged to produce the original power of attorney where it was executed less than 15 years before the contract for sale.

My group noted that clause 5(c) as presently drafted may not achieve the desired effect. This subclause will therefore be amended so that the presumption that a power of attorney was validly executed is conclusive.

Clause 9 amends section 20 of the principal Ordinance which deals, inter alia, with the execution of deeds. My group takes the view that witnessing the signing of a document should not be a legal requirement and that a deed may be signed either in the name of a corporation or its authorised agent. Amendments to this effect have been agreed.

Lastly, the definition of floating charges in clause 18 is not exhaustive and may even create confusion. It has therefore been agreed that the proposed definition be deleted. Similar amendments should also be made to section 2A(1) of the Land Registration Ordinance.

We are grateful to the Registrar General, the Law Draftsman and the Legal Department for their assistance and valuable comments, and to the Law Society for its unqualified support.

Sir, the extensive consultation by the Registrar General and the support given to the Bill and the agreed amendments by the Law Society augur well for this important piece of legislation.

Sir, I support the motion.