1. ROUND TABLE LAND REGISTRATION AND BUSINESS MODELS: DIVERSITY OF CONTEXTS AND SYSTEMSWB
Washington, DC, March 24, 2015
Jose Manuel Rodriguez Alvarez
Sr. Public Sector Specialist

2. Role and importance of land registration
Land registration admits a diversity of Systems.
But land registration is more than an organizational issue.
When we talk about land registration we are talking about a critical tool to protect a crucial right: the land property.
Role and importance of land registration

3. Role and importance of land registration
Protection of land property is essential for both, economic and social development.
For example, in most countries, the permanent improvement of land and the commercialization of agriculture depend on the extension of agricultural credit, but lending institutions are unwilling to extend credit if farmers do not have well-defined and documented land rights to offer as collateral.
In many less developed countries, the absence of land registration (or of a reliable registry) has been an obstacle for farmers in accessing agricultural credit.
Role and importance of land registration

4. Role and importance of land registration
If land reform measures are to be implemented, records of land rights provide essential assistance for that task.
Uncertainties over the nature of land interest and over the position of ill-defined boundaries are a fruitful source of disputes in many developing countries.
In any case, a market for private land rights will develop in any society that recognizes such rights, and specialists point to the importance of a market in land as a factor in production if latent energy is to be released and productive potentials realized.
Role and importance of land registration

5. Role and importance of land registration
The issue of land market development is even more important today than in past decades, as many countries have reformed or are reforming their land property systems to permit private land ownership and the development of a land market (for example, the large group of former communist countries).
The land registry is the key instrument to make effective such protection, which means that this is an essential public function and responsibility: we are talking about the protection of a fundamental right that, at the same time is essential for social and economic development.
Role and importance of land registration

6. Basic functions of land registry
It means that, independently of the business models, the State has to deliver some basic functions on the land registry.
These functions are:
1. A good and realistic regulation of the land registry
2. The effective and efficient control of the registry's functioning
3. The delivery of this service (the register as a whole) to citizens, firms, organizations and institutions, independently of the possible outsourcing of specific tasks or support services
Basic functions of land registry

7. Basic functions of land registry
We barely could achieve a good protection of land property rights without the effective guarantee and implementation of these key functions by the State, both in developed and developing countries.
But the exercise of these functions is not enough. An effective land registration requires to achieve some quality standards, which are perfectly identified and defined in the WB 2015 Doing Business questionnaire, with clarity and going to the point.
Basic functions of land registry

8. Quality standards of a land registration system
These quality standards are the following:
1. Reliability: Reliability data assess whether the land registry and mapping system (cadaster) have adequate infrastructure to guarantee high standards and reduce the risk of errors. Reliable land administration Systems can provide up-to-date information that is sufficient to make meaningful inferences on ownership.
2. Transparency: Transparency record assess whether the land administration system makes land-related information publicly available. This can inform the public about transaction possibilities and foster the development of a unified and more efficient land market.
Quality standards of a land registration system

9. Quality standards of a land registration system
3. Coverage: Coverage data assess the extent to which the land register and mapping system (cadaster) provide complete geographic coverage of privately held land parcels. To be accessible to third parties, and thus enforceable to anyone, all transactions need to be publicly verified and authenticated at the registry.
4. Dispute resolution: Dispute resolution data measure the accessibility of conflict resolution mechanisms and the extent of liability for entities or agents recording land transactions. Unclear responsibilities in land transactions lead to more land disputes, diverting lad from productive uses. Clear responsibilities can help keep the number of unresolved disputes low. And at the end of the day, a good, professional judiciary system is a key element for the protection of land property rights.
Quality standards of a land registration system

10. Advantages of a land registration system
A land registration system with the aforementioned functions and standards of quality should have the following advantages:
1. Greater tenure security
2. Greater access to credit
3. Dealing with land is more expeditious, reliable, and inexpensive
Advantages of a land registration system

11. Advantages of a land registration system
4. Establishment of a land market 5. Improvement of land Administration and Public Administration 6. Reduction in land litigation 7. Improved basis for a land litigation
Advantages of a land registration system

12. Advantages of a land registration system
All these advantages lead to more and better social and economic development.
And what is really important is that all the types of land registration should fulfill the aforementioned functions, standards of quality, and advantages.
Advantages of a land registration system

13. Typology of land registry
Now we can present basically the different types of land registry from an organization approach
Basically there are two classical models of land registry: the administrative model (created on France) and the judicial system (created in the German world).
There is a third model, frequently called “quasi-judicial”, in which the functions of the registry are fulfilled by staff not integrated in an classical Administration.
Typology of land registry

14. Typology of land registry
Administrative model: In this model the registry is managed by a unit (Direction, Direction general or similar) integrated in a Ministry, with deconcentrated units disseminated in the territory and made up of of civil servants. An important modality is the agency model, in which the registry is managed by an public agency regulated and controlled by a Ministry, but with substantial financial, staff recruitment, and operations autonomy (Sweden now, The Netherlands, Norway, Macedonia).
Typology of land registry

15. Typology of land registry
Judicial model:
The registry is managed by judges integrated in the judicial organization, and the staff are civil servants (Germany, Austria, Poland).
Quasi-judicial system:
the functions of the registry are fulfilled by staff not integrated in an classical Administration (most of Anglo-Saxon countries).
A singular case is Spain (imitated by Brazil and Chile) where the registrars are recruited by the State through strong competitive processes, but they are paid with the fees of their services and they recruit their own staff. However, they are strongly controlled by a Professional Corporation (the “Colegio de Registradores”) and by the Ministry of Justice (General Direction for Registries and Notaries).
Typology of land registry

16. POSSIBILITIES AND LIMITS OF Outsourcing
-General principle:
Forget the word privatization. All these models are public with significant differences.
Not a surprise taking into account the key functions of the State on a tool like the land registry, devoted to the protection of a basic, fundamental right (regulation, delivery of the service, control).
-Possibility of outsourcing specific services, except the core functions of the register:
-ICTs
-Information and survey services
-Other support services
POSSIBILITIES AND LIMITS OF Outsourcing

17. - There is no a “best model” or “one size fits all”
- Take into account the national experience, institutions, and tradition.
- Learn from the others experience and good practices, but avoid automatic and uncritical institutional transplantation
Take into account the key roles and functions of the public sector regarding the land registry, protecting a basic right with crucial transversal, horizontal effects on social and economic development.
Principles about the benchmarking of registry models and outsourcing practices

18. Thank for your attention