INTRODUCTION TO PROPERTY LAW IN TIMOR-LESTE The Asia Foundation Timor-Leste Legal Education Project Timor-Leste Stanford Law School Rua De Nu Laran, No. 20 Crown Quadrangle Bairro Dos Grillos 559 Nathan Abbott Way Dili, Timor-Leste Stanford, CA 94305-8610 www.asiafoundation.org tllep.stanford.edu 2 TABLE OF CONTENTS CHAPTER 1: INTRODUCTION TO PROPERTY LAW ....................................................... 8 1. Introduction ........................................................................................................................ 8 2. Sources of Property Law ................................................................................................. 10 2.1. Hierarchy of Laws ....................................................................................................... 10 2.2. The Constitution of the Democratic Republic of Timor-Leste ................................... 11 2.3. The Civil Code of the Democratic Republic of Timor-Leste ...................................... 12 2.4. Binding Non-Statutory Laws ...................................................................................... 12 2.5. United Nations Transitional Authority in East Timor (UNTAET) Regulations ......... 13 2.6. Indonesian Law Pre-1999 ............................................................................................ 13 2.7. Customary Law ........................................................................................................... 13 2.8. Adopted National Policies ........................................................................................... 14 3. Property in Timor-Leste ................................................................................................. 16 3.1. Categories of Property ................................................................................................. 16 3.1.1. Immovable Property ......................................................................................... 16 3.1.2. Movable Property ............................................................................................. 17 3.2. Introduction to Property Rights ................................................................................... 19 4. Goals of Property Law .................................................................................................... 22 5. History of Property Law in Timor-Leste ....................................................................... 24 5.1. Customary Systems ..................................................................................................... 24 5.2. Portuguese and Indonesian Involvement ..................................................................... 24 5.3. International Intervention ............................................................................................ 25 5.4. Post-Independence ...................................................................................................... 26 6. Property-Regulating Institutions Within Timor-Leste ................................................ 27 6.1. Regulating Private Property ........................................................................................ 27 6.2. Regulating Public Property ......................................................................................... 28 7. Conclusion ........................................................................................................................ 30 CHAPTER 2: PROPERTY OWNERSHIP .............................................................................. 32 1. Introduction ...................................................................................................................... 32 2. Private Ownership of Immovable Property .................................................................. 34 2.1. General Principles of Private Property Ownership ..................................................... 34 2.1.1. Sources of Law ................................................................................................ 34 2.1.2. Basic Ownership Rights ................................................................................... 34 2.2. Types of Private Property Ownership ............................................................................ 39 2.2.1. Individual Ownership ....................................................................................... 39 3 2.2.2. Co-ownership ................................................................................................... 40 2.2.3. Horizontal Property .......................................................................................... 44 2.3. Community Ownership of Immovable Property ......................................................... 47 2.3.1. Community Property ........................................................................................ 48 2.3.2. Community Protection Zones .......................................................................... 50 3. Public Ownership of Immovable Property .................................................................... 54 3.1. Public Domain ............................................................................................................. 54 3.2. Private Real Estate of the Government ....................................................................... 56 4. Conclusion ........................................................................................................................ 58 CHAPTER 3: LIMITATIONS ON USE .................................................................................. 61 1. Introduction ...................................................................................................................... 61 2. Categories of Rights ......................................................................................................... 63 2.1. Sources of Law ............................................................................................................ 63 2.2. General Principles ....................................................................................................... 63 2.2.1. Property and Possessory Rights ....................................................................... 63 2.2.2. Non-Possessory Rights .................................................................................... 64 3. Private Limitations on Use .............................................................................................. 67 3.1. Property Easements ..................................................................................................... 67 3.2. Right of Usufruct ......................................................................................................... 71 3.3 Right of Superficies .................................................................................................... 75 4. Public Limitations on Use ............................................................................................... 80 4.1. Legal Easements .......................................................................................................... 80 4.1.1. Legal Passage Easements ................................................................................. 80 4.1.2. Legal Water Easements .................................................................................... 83 4.2. Encroachments ............................................................................................................ 85 4.3. Private Nuisances ........................................................................................................ 87 4.4. Spatial Planning ........................................................................................................... 88 5. Conclusion ........................................................................................................................ 90 CHAPTER 4: DISPOSITION OF PROPERTY ...................................................................... 91 1. Introduction ...................................................................................................................... 91 2. Overview of Contract Law .............................................................................................. 93 2.1. Introduction to Contracts ............................................................................................. 93 2.2. Contract Formation ..................................................................................................... 94 2.3. Contract Performance .................................................................................................. 98 2.4. Non-Performance and Enforcement .......................................................................... 100 2.5. Conclusion ................................................................................................................. 107 4 3. Irrevocable Transfer of Property Rights ..................................................................... 108 3.1. Purchase and Sale Contracts ...................................................................................... 108 3.1.1. Basic Rules ..................................................................................................... 108 3.1.2. Mortgages ...................................................................................................... 112 3.2. Gifts ........................................................................................................................... 112 3.2.1. Reversion of Gifts