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Newsletter - July 2006
 
Speed up URA Acquisitions
 
Where you act for a client selling a property to the Urban Renewal Authority ("URA"), he is usually keen to complete the purchase so that he can receive the acquisition monies as soon as possible.
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Problems often arise in proving good title to these older properties; including missing documents, discrepancies in signatures and probate papers not in order. Where title cannot be proved, the case will be referred to the Government for resumption which may take up to a year to complete, delaying your client's receipt of acquisition monies and payment of your legal fees. The whole process can be time-consuming and frustrating.
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Solution - Title Insurance
 
Title insurance can insure over the title problems that the URA is concerned about and remove the need to conduct extensive legal research and lengthy requisitions on title with the URA's solicitors. This will enable the transaction to complete smoothly and quickly; allowing your client to receive the acquisition monies and move on with the purchase of a replacement property.

The policy will be issued to the URA indemnifying it against loss resulting from the title defects. The premium is a one-off payment and ranges from 0.1% - 0.5% of the acquisition cost, depending on the nature of the defect. The minimum insurance premium is HK$2,000.
 

 
For further information on how title insurance can help speed up transactions with title defect risk, please contact us on 2161 9109.