securing our future: establishing a residential land titling program
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Securing Our Future: Establishing a Residential Land Titling Program. Current Situation. There are 24 million land parcels in the Philippines Almost 46% or 11 M parcels are untitled Approximately 70% or 7.8 million untitled parcels are residential lands - PowerPoint PPT PresentationTRANSCRIPT
La Salle Institute of Governance
LAND MARKETS DEVELOPMENT PROJECT
Securing Our Future: Establishing a Residential Land Titling Program
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Current Situation
•There are 24 million land parcels in the Philippines
•Almost 46% or 11 M parcels are untitled
•Approximately 70% or 7.8 million untitled parcels are residential lands▫the balance is agricultural, industrial, commercial
•About 39 million Filipinos live on these untitled residential parcels
*Data from the LAMP Land Tenure Status Report – Book 1
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
The Impact of Untitled Lands•Landowners are at a risk of losing their property
to land grabbing
•Landowners has no access the formal land market since it requires a title (loan mortgages with banks, etc.)
•Rights over untitled lands is unrecorded causing conflicts and uncertainty (between family members, neighbors, etc.)
•Economic growth stifled
▫Few titles few loans less investment lower economic growth lower job creation
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Current Policy Environment
Two options for titling the 7.8 million residential parcels
1. Judicial Titling Process▫ Confirmation of an Imperfect Title
2.Administrative Process ▫ Sales Patent or Miscellaneous Sales Patent
Applications
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Findings
1. Judicial Titling Process▫ Complicated and Costly
Highly technical Non-lawyers cannot appear in court Expensive professional fees, filing fees, other
costs▫ Time consuming and Tedious
Rules of Evidence, Adversarial, Appeals Months to many years
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Findings
2. Administrative Process – Sales Patent▫ Expeditious ▫ Limited coverage
Only applicable to public lands ▫ Can be costly
When applicable, land parcel is subject to appraisal
Landowner may have to pay the government to “purchase” parcel from government
▫ Some uncertainty In certain cases, parcel may be subject to bidding
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Year Court Issued Titles
DENR Issued Residential
Sales Patents
DENR Issued Agricultural Free Patent
2003 1,325 4,057 98,486
2004 1,761 2,918 110,960
2005 975 2,607 101,143
2006 892 3,125 113,620
Untitled Residential Lands = Estimated at 7.8 million Parcels
Title issued by DENR under Residential Sales = Assume 5,000/annum
Title issued by the Court = Assume 1,000/annum
At the present rate, it will take 1,300 years to title the 7.8 million residential parcels
Findings
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Findings
1. The financial and administrative burden of titling residential parcels is currently on the individual owner
▫ Constraints prevents landowners in registering their land, thus, many residential parcels remain untitled
2. Government titling programs focused on agricultural lands
▫ Land for the Landless, Handog Titulo, CARP3. There is no government program to address
titling of public residential lands
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Findings•Without government assistance, individuals do
not have the financial resources to undergo either a judicial or administrative process
•Government has the ability and financial resources to properly title residential parcels
•It is good public policy to create government program focused on residential land parcel titling
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Policy Recommendation
Establish a program to grant free patent for the almost 7.8 million parcels of residential lands
Re-enact and expand theResidential Free Patent Law (Batas Pambansa 223)
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
BP 223•The grant of free patent on residential lands
was authorized under Batas Pambansa 223 on April 1982
•Limited to 5th and 6th class municipalities
•Lapsed on December 31, 1987
•Given the limited scope and time frame, BP 223 did not effect the titling of residential lands
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Proposed Key Provisions
1. Establish an expeditious administrative program (free patent) for titling residential land
▫ Provide an alternative to the judicial process▫ Many countries title property through an
administrative process▫ An administratively granted title provides
equal security as a judicially granted title
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Proposed Key Provisions
2. Extend the program to all municipalities and cities
▫ Administrative titling should benefit landowners in all cities and municipalities
▫ BP 223 was limited to 5th and 6th class municipalities to have an impact to the economy
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Proposed Key Provisions
3. Remove restrictions on transfer and other conveyances for titles acquired through the Residential Free Patent Program
▫ Allow landowners to use their properties as collateral for entrepreneurial and homebuilding/improvement activities
▫ Restrictions on Agricultural Free Patents should not be extended to the Residential Free Patent Program
No sales or mortgage for 5 year period The five-year restriction imposed in CA 141
hampers the creation of efficient land markets
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Benefits of Residential Free Patent Program
•Provides security of tenure to as many as 39 M Filipinos
•Jumpstarts economic development▫Allows homeowners access to credit in banking
institutions for entrepreneurial or homebuilding activities
▫Increases lending activities of banks and other financial institutions with better collateral
▫Increased employment ▫Allows for efficient urban and housing
development
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Benefits of Residential Free Patent Program•Greater social stability
▫Less family and social conflicts due to secure and well-defined property rights
•Increased revenue for the government▫Broadened tax base▫Increased land values▫More land transactions
La Salle Institute of Governance LAND MARKETS DEVELOPMENT PROJECT
Conclusion
•A government program to title residential parcels can change the lives of millions of Filipinos
•This will unlock economic growth, investment, and job creation
•This program will promote social cohesion by giving beneficiaries an economic stake in society
•Secure property rights are essential for a prosperous and peaceful Philippines