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Land Registration Systems Around the World Land Systems: Why? Land 1/3/10 Land Systems: Why? Land Registration Systems • Government func7on has been to maintain records Around the World regarding land and other real estate to properly assess its value and collect real estate taxes • Cadastres (Land books) were introduced to keep MCRA Summer Conference track of the technical aCributes of land inventories • The earliest cuneiform records from 4th century B.C.E. in Breezy Point Mesopotamia are administra7ve property records dealing June 25 2009 with land, animal husbandry and personnel management Peter Rabley • Over the last two centuries legal rights and responsibili7es of International Land Systems (ILS), Inc both the private and public sectors engaging in real estate transac7ons have become a primary concern Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. Land Systems: Why? Benefits of Land Systems Certainty of . Sustain stability & economic development by registering Improved Ownership Spatial Security of private property rights that promotes internal confidence Land-use Tenure Planning between its people, its commercial enterprises and its Improved government. State-lands Facilitated Management Land Reform . Private property rights are a major source of na7onal wealth & good government and effec7ve public administra7on. Improved Improved Land-market Land Resource . States that prosper promote widespread and secured private Monitoring Management ownership of real estate as a founda7on of social and economic policy. Credit Reduction in Security Land Disputes Improved Land Market Property Improved Development Taxation Conveyancing Public Confidence Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. Principles of Land Systems Essence of Land Systems PROPERTY Bundle of Rights PARTIES • Parcels • Buildings • Real property rights defined and protected • Construc7on • Apartments by Government. • Real property rights have a legal dimension. • Owners • Real property rights have a physical dimension; • Tenants RIGHTS • Mortgagors tangible or intangible. • Trustees • Ownerships • Real property rights have an economic dimension; real • Caveators • Leaseholds property is a store of value, an element of wealth - a • Aorneys • Servitudes • Restric7ons safe “harbor”. • Encumbrances • Caveats Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. 1 1/3/10 Essence of Land Systems: Rights Essence of Land Systems: Rule of Law Legislaon • Right of private property is defined by a Cons7tu7on, Legisla7on/Code, Regula7ons, and/or Documentaon Customary Law Procedures • The Bri7sh Common Law is an example of customary law • Many of the principles of this common law have been Conveyancing codified by legisla7on Registra7on • Many countries have customary rights Completeness of Records • The rights are created by contract: Access • First from Government to Private Sector/Person • Subsequently, between any par7es competent to contract Cost Integra7on of Land Informa7on Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. Land Systems: Market Expectaons Land Systems: The Financial Sector • A Simple, Understandable Procedure for Recognizing Rights • Primary land markets • Effec7ve, Secure Documenta7on of Rights created • Protec7on against Infringement of these • All transac7ons must Rights by Others be tracked • A Public Record of these Rights so Others Know • Markets mature and • Records Complete and Incontrover7ble Proof confidence grows • Convenient Methods for Transferring these Rights • Securizaon • Effec7ve Procedures for Preserving the WriCen Record mobilizes funding “The power to iden.fy and isolate with precision every asset and every par.cular interest on that asset” Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. Land Systems: Toxic Paper? Land Systems: Toxic Paper? History.. “This poisonous paper is scaring off poten7al creditors “ This is the judgement of and investors who lack the legal means to understand sober men Will be this long what this paper signifies, how much there is who has desired Registry Upon whose fond none can be cheated it, and who might be a bad risk.” when They trade or trust on that security Which if it pass as it is now fitted The just are “A meager 7 percent default on subprime mortgages Feet of Fine Deed: fictitious court cases used to record a double blessed, the knaves conveyance. funded or insured by deriva7ves…..is debasing the outwitted” rest of the economic paper and contamina7ng the 1660’s England en7re economy” Andrew Yarranton, -‘A Plain Dealer’s Prayer for a Registry’ Hernando DeSoto – Newsweek, March 2, 2009 pages 47-48 Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. 2 1/3/10 Early Land Systems Early Land Systems • “Cursed be he that removeth his neighbour’s landmark” • Terminus was the god of boundaries. book of Deuteronomy in the Old Testament (ch 27 v17), 3,000 years ago The stones used to mark borders were sacred to him. In February Terminalia was celebrated by the Romans. The stone or stump boundary- markers were “drenched in sacrificial blood and placed on flowers to • In Mesopotamia, maps were "drawn" on clay tablets and renew its protecve powers”, “Without you every field would be disputed” depicted the Mesopotamian world including maps of individual settlements and properties. • Turf and Twig "The lucky new Commoner goes to his "given" acre and cuts a turf from the selected site and drops two shillings in the hole made. The High Steward then twitches him with a twig and s7cks the twig in the turf, then Clay Tablet map from hands it to him saying, "This turf and twig I give to thee, as free as Ga-Sur, 2,500 B.C map Athelstan gave to me, and I hope a loving brother thou wilt be." The High of pre-flood Edenic Valley (now below the Steward then takes the money out of the hole and the new landowner Red Sea). replaces the turf.“ 12th century – Athelstan King of England 924 -939 Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. Early Land Systems Early Land Systems: Customary • Livery of Seisin (feoffment) • These are not governmental systems, rather rely on private parties exclusively to perpetuate records “A ceremony performed in medieval England that effected the transfer of land from one party to another.”Livery of • In the common law context livery of seisin is a good seisin was the dominant method of transferring land in example England un7l 1536, and it con7nued to be legal un7l 1925. “A • In many countries symbolic rituals witnessed by persons smack on the ear!” expected to be able to substantiate a transaction well • Bargain and Sale into the future are common • Private conveyancing is the passage of original Not un.l 1536 did it replace conveyancing documents from buyer to seller Livery of Seisin • England favored privacy early on • Colonial bodies favored public recordings of deed transfers (Virginia Statute of 1640) Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. Early Land Systems: William the Conqueror Early European Perspec7ve “... surveyed so carefully that there 1862 was not a hide of land in England of Brent Land Use which he did not know who held it and Follett Cadastre 16th how much it was worth”. Century Bonaparte Empress Maria 1804-1815 Theresa (1717-1780) Domesday Book, 1086 Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. 3 1/3/10 European Historical Consequence All Systems Need Maps APPLICATION FOR Showing Property Boundaries…… REGISTRATION ‘Fixed & General SURVEYING LEGAL MAPPING DOCUMENTATION DATA • Fixed boundary Registry of Property and Cadastral Survey Office • General boundary Ownership Rights CADASTRE Cadastre Registra7on acts typically LRS #NNN Data REGISTRY OF allow both. CADASTRAL SURVEYING PROPERTY RIGHTS & MAPPING RECORDS Fiscal Legal • Combined INDEX MAP • Flexible TITLE • Point iden7fier as /DEED first step • Unique parcel ID number becomes essen7al in either case Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. Types of Land Systems Today 1. Customary – usually an oral agreement accompanied by symbolic /customary ritual 2. Religious (Waqf lands in Middle East) 3. Private Conveyancing 4. Deeds Registration 5. Title Registration Copyright © 2009 International Land Systems (ILS), Inc. Copyright © 2009 International Land Systems (ILS), Inc. Formal Land Systems Deeds vs. Title Systems • Two formal systems of recording and making inventories of RELATIONSHIP BETWEEN MAN AND LAND IN DEED SYSTEM RELATIONSHIP BETWEEN MAN AND LAND IN TITLE SYSTEM property have evolved RIGHTFUL CLAIMANT LEGAL LAND SUBJECT 0BJECT (PERSON/ENTITY) OBJECT •Deeds Register Systems •Title Register Systems LEGAL LEGAL RIGHT(S) RIGHT(S) RELATION RELATION • Deeds Registers are older than Title Register Systems • The legal framework provides protec7ons for recording or RIGHTFUL CLAIMANT LEGAL LAND SUBJECT 0BJECT (PERSON/ENTITY) registering rights (priority, security of tenure) OBJECT Source: Larsen • Recording and Registra7on are the subject of special laws •Recording Acts for deeds systems •Title Registra7on Acts for registra7on systems Copyright © 2009 International Land
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