BENEFITS OF A GOOD ADMINSTRATION SYSTEM IN LAND

BENEFITS OF A GOOD ADMINSTRATION SYSTEM IN LAND

 

   The modern cadastre is not primarily concerned with generalized data but rather with detailed information at the individual land parcel level. As such it should service the needs both of the individual and of the community at large.

    Benefits arise through its application to: asset management; conveyancing; credit security; demographic analysis; development control; emergency planning and management; environmental impact assessment; housing transactions and land market analysis; land and property ownership; land and property taxation; land reform; monitoring statistical data; physical planning; property portfolio management; public communication; site location; site

management and protection. Although land records are expensive to compile and to

keep up to date, a good land administration system should produce benefits, many of

which cannot in practice be quantified in cash terms.

These benefits are outlined below.

1. Guarantee of ownership and security of tenure

   The compilation of land records and the judicial processes that must be gone through in order to bring land information onto the registers should provide formal identification and, in some systems, legal proof of ownership.

    The public registers should contain all essential juridical information allowing anyone viewing the system to identify thirdparty rights as well as the name of the landowner. In some systems, such as the English registration of title to land, the State then guarantees the details recorded in the register, so that if a mistake were to occur, compensation would be paid. In others, the registers are treated as primary evidence rather than definitive proof.

    The Netherlands is an example of the latter, although any enquirer is protected against inaccurate or incomplete information either contained in deeds entered in the public registers or caused by errors, omissions, delays or other irregularities. Thus, although there is technically no guarantee of ownership per se, the integrity of the system is sufficiently high for landowners to have full confidence in their rights.

2. Support for land and property taxation

   Good land records will improve efficiency and effectiveness in collecting land and property taxes by identifying landowners and providing better information on the performance of the land market, for example by identifying the current prices being paid for property and the volume of sales. Since the cadastre should provide full cover of the land, all properties can be included and none should be omitted. While not all countries seek to impose taxes on land or property, such fiscal measures are regarded by many as fair and just since they are perceived in effect as taxes upon wealth.

    They are relatively easy to collect in contrast for example to personal income taxes where earnings can be hidden. It is not possible to hide a piece of land or building although it is possible to conceal the records of such a property.

3. Provide security for credit

   Certainty of ownership and knowledge of all the rights that exist in the land should provide confidence for banks and financial organizations to provide funds so that landowners can invest in their land. Mortgaging land is one way to acquire capital for investing in improvements.    Landowners can then construct or improve buildings and infrastructure or improve their methods and management of the land, for example by introducing new farming techniques and technologies.

4. Develop and monitor land markets

   The introduction of a cheap and secure way of transferring land rights means that those who wish to deal in land can do so with speed and certainty. Those who do not wish to sell their land can be protected-no persons need be dispossessed of land unless they so wish since their rights should be guaranteed.

   The registers should be public so that at any time a landowner can confirm his or her rights. Those who wish to buy land can do so with confidence, knowing that the person who is trying to sell the land is the legally guaranteed owner. Those whose properties are subject to compulsory purchase-for instance where a new highway is to be built across their land-can be treated with fairness since the registers should provide information on current land prices, thus allowing better estimates of the market value of land to be made.

5. Protect State lands

   In many countries the land that is held by the State for the benefit of the community is poorly documented. This is not a problem in countries where the State owns all land, but where there is private land ownership, that which remains in the possession of the State must be properly managed. In all societies the State is a major landowner and its property must be protected for example from encroachment by farmers onto land beside roads or from attempts by squatters to settle on vacant land that is being held for future use.

   The State needs to manage its property assets and to ensure their efficient use and upkeep every bit as much as does the private citizen. A system of registration of title to land will facilitate this.

6. Reduce land disputes

   In many countries disputes over land and its boundaries give rise to expensive litigation and all too often lead to a breakdown in law and order. Much time is taken up by the courts in resolving these matters, leading to delays in other parts of the judicial system.

   Land often cannot be put onto the market or put to better use without resolution of the disputes, since no potential investor is likely to wish to be committed to developing land where a lawsuit may be pending. The process of registering rights should prevent such disputes arising in the future, since at the time of first registration formal procedures should be followed that will resolve uncertainties.

7. Facilitate rural land reform

The distribution of land to the landless, and the consolidation and redistribution of land

for more efficient use all require detailed records of the present ownership and use of

the land. Compensation may need to be paid to those who lose out in such a process, or

money may be taken from those who make special gains. The design of new patterns of

land ownership to provide greater productivity from the land can be effective only if the

existing pattern is well documented.

8. Improve urban planning and infrastructure development

   As with rural land reform so urban centres need redevelopment and effective land-use planning and control. In many countries the control of development and the issuing of building permits are the responsibility of the local municipal authority.

   A good land administration system should permit the integration of records of land ownership, land value and land use with sociological, economic and environmental data in support of physical planning. The availability of up-to-date large-scale cadastral plans of urban areas provides the basic framework within which development schemes can be planned and assessed and acceptable designs implemented.

9. Support environmental management

   Multi-purpose cadastral records can be used to record conservation areas and give details of archaeological sites and other areas of scientific or cultural interest that may need to be protected.

   The cadastre can be used in the preparation of environmental impact assessments and in monitoring the consequences of development and construction projects. In the Netherlands, for example, there is a register of presently polluted sites and of formerly polluted sites that have been decontaminated.

10. Produce statistical data

   By monitoring the ownership, value and use of the land, data can be assembled for those concerned on the one hand with resource allocation and on the other with measuring the performance of development programmes. Both long-term strategic planning and short term operational management require data in support of decision-making.

F. Institutional issues

   The success or otherwise of any broad-ranging land administration system requires a

number of institutional issues to be addressed. It is essential to focus on the needs of the

users of the proposed system.

The customers of a land information system include most government departments and many sectors of the community, for instance:

(a) Government: agriculture and forestry; defence education; environment; finance/economic affairs; health; highways and transport; housing; internal affairs/police; justice; lands and surveys; local government; natural resources; planning and development; power and electricity; public works; trade and industry; etc.;

(b) Private sector: architects; banks and building societies; construction companies; economists; engineers; environmentalists; farmers and foresters; financial and insurance advisers; investors; land and property owners; lawyers and notaries; marketing specialists; planners; property developers; property managers; real-estate agents; surveyors and valuers; etc.

   The products that are needed by each customer will differ, although a common theme is the ownership, value and use of the land. In many eastern European countries detailed land records have been compiled in most agricultural areas, providing data on soils, water resources, crop types, crop yields, etc.

   The classification for soils has been complex and detailed. There is little evidence that the collection, storing and analysis of these data have been cost-effective or are needed in a modern market economy. There is an urgent need for countries in transition to review their requirements for land information in the light of modern techniques of data gathering and processing and the changing needs of the economy. It is of course difficult to predict long-term needs for data that can be used to analyse changes over time. It is however essential at present to set priorities to match the resources presently available. Much money has in the past been spent on data that have been little used. Many costs can be recovered through the sale of land-related data, even though in a market economy it may be difficult to determine the right price. In many countries maps, for example, are marketable commodities but have traditionally

either been unavailable because of the interests of national security or else have been on

sale at highly subsidized prices.

   Experience suggests that first registration of title to land must be subsidized, as must the

creation of the base mapping that supports land registration and the cadastre. The legal and administrative costs of running a land registration system can and preferably should, however, be fully recovered from the users.

    It is generally accepted that the State must have a dominant role in setting up and operating cadastre or land registration system. The influence and extent of involvement of he private sector differs between countries. In some countries, such as Sweden and Finland, he State operates a legal process of land management using governmental authorities with little input from the private sector.

   In many countries, however, private licensed land surveyors undertake the field survey and measurement of individual property boundaries, while in some jurisdictions private lawyers are registered as State notaries. These notaries must check all relevant documents before they are registered and must endorse land transfer application forms to ensure that the persons concerned are the bona fide landowners.

   Where data that have been collected by the State or by other governmental authorities are made available to the general public for possible commercial exploitation, the protection of the investment in data becomes important.

    The State needs to protect its investment in land information on behalf of the taxpayer just as much as the private sector needs to protect its interests. It is important to ensure that a fair reward goes to those who have incurred costs in collecting data or in creating products. Protection may be provided through pricing politics and the laws on intellectual property, especially copyright.

    In most countries international treaties on copyright exist especially as a result of the Bern Convention for the Protection of Literary and Artistic Works. In moving towards a market oriented approach to land-related information. Managers should: -Investigate who the customers are in the market for land-related data and what basic information they require;

·         Direct existing data gathering and processing towards the ownership, value and use of

land; and Provide a nationwide service, introducing cross-subsidies if necessary to ensure full

cover of the country.

G. The role of computerization

   One of the major catalysts for change has been computerization. The benefits of a land administration system can be enhanced by using computers to:

·         Force standardization in the collection and processing of land information;

·         Speed up the processes of first registration of title;

·         Decrease the cost and space required for storing land records;

·         Prevent unnecessary duplication;

·         Simplify the preparation of “disaster” copies of registers;

·         Facilitate access to land-related data and improve their distribution;

·         Reduce the time and cost involved in transferring property rights and in processing mortgages;

·         the monitoring and analysis of market and rental values of land and property; and

·         Provide built-in mechanisms for quality control.

   The conversion of data into computer-readable form is often an expensive and time consuming

task that can account for three quarters of the cost of setting up a Computerized system.

·         The quality of data may be poor and their conversion into digital form will not necessarily improve this. The introduction of computers is however more than a technical matter, since it introduces changes in the skills and responsibilities needed within an organization, its organizational structure, investment strategies and such like. Within a government-run cadastral system, computerization may involve changes in legislation.

   In order to ensure that all land-related data can be treated as a corporate resource and

shared between organizations, flexible and clearly defined data exchange standards will

need to be introduced. Given the present rapid rate of change in technology, investment in hardware and software will have to be renewed every three to five years.

   The major investment, however, is in data and although they too must be kept up to date, they should not need to be renewed along with the hardware and software.

H. Recommendations

   Countries should establish or improve their land administration system to:

·         Guarantee title and provide security for credit;

·         Support land and property tax assessments;

·         Provide data on the performance of land and property markets;

·         Document the structure of land use and land-use restrictions;

·         Monitor the environmental impact of development projects;

·         Facilitate land reform;

·         Subsidize the initial creation of ;I land administration system; but

·         Recover fully their recurrent operating costs.