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UPA Package 2, Module 2
PROPERTY RIGHTS AND LAND
TENURE
2.2.1 Property Rights and Land Tenure
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Aims of the lesson
• To understand the basic definition, system and the
characteristics of land tenure and property rights, then
its relationship with urban poverty alleviation
• To understand the criteria for assessing land tenure and
property rights
• To understand the recent trends and demand of secure
property rights
2.2.1 Property Rights and Land Tenure
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Definition of Terms and the
Nature
Land Tenure:
It can be defined as the mode by which land is held
or owned, or the set of relationships among people
concerning land or its product. It also can be
described as the manner in which rights in land are
held.
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Definition of Terms and the
Nature
Property Rights:
It can similarly be defined as a recognized
interest in land or property vested in an individual
or group and can apply separately to land or
development on it. Rights may cover access, use,
development or transfer and as such, exist in
parallel with ownership.
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Definition of Terms and the
Nature
2.2.1 Property Rights and Land Tenure
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Systems of Land Tenure and Property
Rights in A General Perspective
Two Major Categories:
• The Roman law or the Napoleonic Code view land as
a commodity which can be owned.
• The British common law regard land as something to
which one can have rights.
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Systems of Land Tenure and Property
Rights in A General Perspective
Customary Tenure and Property Rights:
• The major characteristic of customary tenure is that the
land is regarded as belonging not to the individual but to
the whole social group.
• It is found in most parts of Africa, the Middle East,
Melanesia and North America
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Systems of Land Tenure and Property
Rights in A General Perspective
Private Land Tenure and Property Rights:
• The concept of private property rights is an integral part of
the legal structure of European society. (UN 1973)
• The combination of private ownership and extensive
individual rights has been the cornerstone of Western
European and North American societies for the last two
hundred years.
• In developing countries it is imported and generally
concentrated in urban areas. It may co-exist with other
indigenous tenure systems. However, its primary limitation
is the difficulty of access by lower income groups.
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Systems of Land Tenure and Property
Rights in A General Perspective
Public Land Tenure and Public Control:
• The concept of public land ownership is largely a
reaction to the perceived limitations of private
ownership in that it seeks to enable all sections of
society to obtain access to land.
• higher level of equity, but lower level of efficiency,
or high costs of land management and investment
constrains.
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Systems of Land Tenure and Property
Rights in A General Perspective
Religious concepts of tenure and property right:
• Islamic concept
• ‘aqf’ land is land ‘held for God’, and owned by
religious foundation.
• ‘musha', or communal land, is land owned collectively,
originally under tribal tenure.
• ’mulk' land, or private land, is owned by an individual
with full ownership rights and is also protected in law
• ‘miri', or state controlled land.
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Systems of Land Tenure and Property
Rights in A General Perspective
Indigenous and imported tenure concepts:
• By the end of the nineteenth century, indigenous land
tenure systems were operating in parallel with
European concepts in most parts of Africa, Asia and
the Pacific.
• Modern legal systems co-exist with legally adopted
customary system.
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Non-formal tenure categories and
property right:
• A wide range of categories with varying degrees of legality
or illegality: Include regularized and un-regularized
squatting, unauthorized subdivisions on legally owned
land and various forms of unofficial rental arrangements.
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National Tenure Policy Options
Box 2. Advantages with freehold and leasehold
• Freehold
• Leasehold
• Conditional
freehold
Advantages with freehold
Advantages with leasehold
Freeholds are perceived as Reduction of increase in land prices
more secure
Planned and controlled land
Less risk for the inefficient development is easier if the government
and slow processes of can act as the ultimate owner rather
bureaucracies
than a statutory regulator
Regular rent review can ensure that
Decreasing readiness to capital appreciation is shared between
invest towards the end of a the public sector and the developer or
leasehold
tenant
Problems
related
landlord-tenant
disagreements
Monitoring land transactions is easier
to with leasehold clauses (e.g. speculation
in sites-and-services schemes)
Offers possibilities for providing more
equity to disadvantaged groups
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Criteria for Assessing Tenure
and Property Rights
• Clarity
• Efficiency
• Equity
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Discrimination in the Access to
Land
• Discrimination exists against three broad
groupings of people ---women,
indigenous peoples,
minority groups of settlers
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Recent Trends and the Demand
for Secure Property Rights
In the 1990’s, the World Bank has put emphasis on
tenure security policies based on access to land
ownership. The objectives were:
• To unify land markets.
• To guarantee investments by providing real rights.
• To permit beneficiaries to have access to mortgage
finance.
• To develop or improve property taxation (linked with
decentralization policies).
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Recent Trends and the Demand
for Secure Property Rights
• The World Bank’s draft Urban Strategy Paper (2000)
emphasizes the need for ‘stronger property rights’ in
real estate markets and ‘secure and clear’ tenure in
upgrading projects. Tenure security and property
rights are listed as among the most important factors
influencing housing demand and it is claimed that
insecure tenure leads to under-investment in housing
and to reduce housing quality
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Demand for Tenure Security
“Security of tenure is a fundamental requirement for the
progressive integration of the urban poor in the city, and
one of the basic components of the right to housing … It
guarantees legal protection against forced eviction …The
granting of secure tenure is one of the most important
catalysts in stabilizing communities, improving shelter
conditions, reducing social exclusion improving access to
urban services”.(UNCHS 1999)
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