Call for waiving compensation cap to protect innocent property buyers

The government should consider gradually waiving the HK$50 million compensation cap of the Land Title Indemnity Fund for genuine and innocent buyers who are defrauded and lose their properties, lawmaker Edward Lau Kwok-fan said. 

Lau made these remarks during a radio program on Tuesday, following the Development Bureau’s announcement to table a Land Titles Ordinance amendment bill, which incorporates a principle that title is "indefeasible."

“Of course, at the initial stage we have to strike a balance to assess the risk, but as the fund accrues more money and the capacity to assume risks escalates, [the government] can consider relaxing and removing the restriction to be fair to people who have been defrauded,” Lau added.

Lawrance Wong Dun-king, director of the Hong Kong Chamber of Professional Property Consultants Limited, believes the bill will expedite title-checking procedures, ultimately leading to a reduction in lawyers' fees. 

“Currently, there is no upper limit on lawyer fees, but it may be reduced with the streamlining of work processes,” Wong said.

(Stacy Shi)