Transcript What is land titling?

UPA Package 2, Module 5
LAND TITLING PRACTICES
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What Is Land Titling?
Land titling is the generic term used to
describe programs implemented by the State
to enable individuals and the State to
efficiently trade in rights in land and property
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Why Title Rights in Land?
Developing Countries
– A Simple Economic Model
• In most countries real estate constitutes between
50% and 75% of national wealth.
• The lack of a formalised system to register rights
in land significantly inhibits economic activity.
• Without a formal land registration system an
informal land market develops.
• An informal land market operates in an
environment of considerable uncertainty,
discourages long term investment and can lead to
resource degradation and social unrest.
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Why Title Rights in Land?
Land Titling may be undertaken for a number of
reasons:
• Economic reform
• Social equity/reform
• Land consolidation
• Allocation of public land
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Land Titling Activity Worldwide
Status of Land Titling and Administration Projects
• Interest in land titling has grown markedly over the
past decade.
• The World Bank currently has projects (at various
stages) in over 30 countries.
• The Asian Development Bank has projects in 2
countries.
• Other agencies have been active, including the
FAO, EBRD, EEC, UNDP.
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What Does a Land Titling Project Look
Like?
Characteristics of Typical Projects
• Long term
• Operates in a complex institutional setting
• High level government contact
• High potential fiscal/social impact
• Generates linkages to all sectors (public, private
and academia)
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What Does a Land Titling Project Look
Like?
PLUS
• Institutional Re Engineering
• High Rate Development
• Financial Management
• Community Relations And Services
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What Does a Land Titling Project Look
Like?
Typical Project Components
• Project management
• Policy formulation
• Land law
• Land title issuance
• Land registration
• Survey and Mapping
• Land records management
• Land and property valuation and taxation
• Land information systems
• Education and training
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Benefits of Land Titling
• Secure land tenure
• Reduction in land disputes
• More efficient land markets
• Increased land values
• Broadened tax base
• Information to support better resource allocation and
management
• More equitable basis for compensation
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The Economic Benefits of Land Titling
• Land titling or registration will increase productivity
through increasing factor mobility (development of
efficient land markets).
• Land titling will increase access to institutional credit.
• Land titling will encourage on-farm investments.
• Land titling will increase government revenue.
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The Social Benefits of Land Titling
• Increased security
• Increased land prices
• Reduced land disputes/social tension
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Land Titling Practices in Dveloping
Countries
Currently the World Bank is supporting at
least 13 implemented land titling and
registration projects with a total loan value of
about US$550 million.
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Thailand Land Titling Program (TLTP)
The TLTP is a 20 year program begun by the Royal
Thai Government (RTG) in late 1984. The TLTP was
planned in four phases.
TLTP I (1984-1990), TLTP II (1990-1994) and TLTP
III (1995-1999), and TLTP IV (2000-2004).
Foregoing three phases have all been funded by
RTG counterpart funding, loans from the World Bank
and grant assistance from AusAID. The project will
enter its thirteenth year on 1 October 1996 and thus
has a significant track record.
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Thailand Land Titling Program (TLTP)
Objectives
• the acceleration of the issuance of title deeds to
eligible land holders;
• the improvement of land administration systems,
both in Bangkok and in the provinces;
• the production of cadastral mapping in both urban
and rural areas;
• the improvement in the efficiency of the Central
Valuation Authority in the valuation of land and
buildings
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TLTP in Perspective
• Prepared in 1982/3, to alleviate rural poverty
• planned as a 20 year project to complete land titling
throughout Thailand
• commenced in 1984, in 9 provinces
• initial emphasis in technical areas
• emphasis has shifted to broad institutional issues –
strategic planning, IT strategy, HRD, service delivery
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Factors That Have Contributed to
Success in Thailand
• Twenty years prior investment by the World Bank in
agriculture in Thailand
• Project is solely concerned with land titling
• Project has only one implementing agency
• The Department of Lands was well established
• Thailand has a long history of land titling, having
introduced a title system in 1901
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Factors That Have Contributed to
Success in Thailand
• Project activities are predominantly in the settled
lowlands and in areas of little of not traditional land
tenure
• The administrative procedures of the Department are
very responsive to public demand
• Strong and sustained commitment
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Peru Urban Property Rights
Most of Lima's massive expansion has been driven by poor migrant
families from the countryside who have built their homes on the city's
dusty peryphery
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Peru Urban Property Rights
Without legal property titles, children had to stay home from
school while parents were at work so it would not be seized
by another homeless group.
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Peru Urban Property Rights
Without proof of ownership, homeowners are unable
to get credit from banks for home repairs such as
fixing leaking roofs or installing pipes For running
water. They have very little connection with the state,
and no one enforces their rights as citizens.
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Registering Property is Key to
Opportunity
In 1998, a $38 million World Bank Loan was approved
to support legal registration of 960,000 urban properties
in Peru. Combined with $24 million from the
Government of Peru, the project has already
outperformed its original plan with over 1.3 million
homeowners having registered their properties. And
demand is growing.
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Peru Urban Property Rights Project
The principal objective of this project is to create a
system assuring formal and sustainable rights to real
property in selected, predominantly poor, settlements
in larger urban areas. The project supports a national
program for formalizing urban property rights (issuing
and registering titles). Through legal and institutional
improvements, training, and the development of longterm strategies, it also strengthens the organizations
responsible for this program.
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Peru Urban Property Rights Project
Project managers worked with street actors to devise a lifesize board game to show residents how the legalization
process works.
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Peru Urban Property Rights Project
An innovative communications effort that includes comics and
video has been key to the project's success, but staff finds that
word of mouth is just as effective: "The beneficiaries themselves
are the project's biggest supporters."
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Peru Urban Property Rights Project
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Peru Urban Property Rights Project
Nicomedes Mejía and
his wife Adela Espinoza
had lived in the Tacalá
urban settlement outside
Lima for more than 15
years before obtaining the
title to their house with
the help of the project.
With their ownership
secured, they used home
equity to guarantee a
mortgage their son Luis, a
schoolteacher, took out to
build a school in the
neighborhood.
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The Benefits of the Project
A socio-economic study has shown that:
Land titling has lead to an increased level of
employment in households – an average of 45
hours per week;
Land titling is associated with a significant decline
in the proportion of households who use their
residence as a source of economic activity
Land titles appear to reduce the household demand
for child labour in a majority of households
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