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location_city Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2016. See the methodology for more information.

Frequently Asked Questions

- What does the Registering Property indicator measure? 
- What type of company is measured? 
- What type of property is measured?
- Does the Registering Property indicator record the de jure (concerning law) or the de facto (concerning practice)? 
- How does the Registering Property indicator count procedures? 
- How does the Registering Property indicator measure time? 
- What is new in the Registering Property indicator?
- Does the Registering Property indicator record the de jure (the law) or de facto (the practice) situation?

What does the Registering Property indicator measure?

The Registering Property indicator records the time, cost, and full sequence of procedures necessary for a business (buyer) to purchase a property from another business (seller) and to transfer the property title to the buyer’s name so that the buyer can use the property for expanding its business, pledge the property as collateral in taking new loans or, if necessary, sell the property to another business. The process starts with obtaining the necessary documents, such as a copy of the seller’s title if necessary, and conducting due diligence if required. The transaction is considered complete when it is opposable to third parties and when the buyer can use the property, use it as collateral for a bank loan or resell it. In addition, the topic measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution and equal access to property rights.

What type of company is measured?

The Registering Property indicator considers a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the limited liability form most popular among domestic firms is chosen.  The limited liability company is located in the periurban area of the economy’s largest business city and is 100% domestically and privately owned. Additionally, the company performs general commercial activities and has 50 employees each, all of whom are nationals.

What type of property is measured?

The assumed property has a value of 50 times income per capita and is fully owned by the seller. The property had no mortgages or attachment, has been under the same ownership for the past 10 years, is registered in the land registry or cadastre, or both, and is free of title disputes.

The parcel is located in the periurban commercial zone, and no rezoning is required. Furthermore, the property consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A 2-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition and complies with all safety standards, building codes and other legal requirements. The property of land and building will be transferred in its entirety.

How does the Registering Property indicator count procedures?

A procedure is defined as any interaction of the seller or buyer, and their agents (if an agent is required legally or in practice) or the property with external parties, including government agencies, inspectors, notaries and lawyers. All procedures that are legally or in practice required for registering property are recorded, even if they maybe avoided in exceptional cases. Procedures that must be completed in the same building but in different offices are counted as separate procedures. If the parties have to visit the same office several times for different sequential procedures, each is counted separately. It is assumed that the minimum time required for each procedure is 1 day except for procedures that can be fully completed online, for which the time required is recorded as half a day. Although procedures may take place simultaneously, they cannot start on the same day (that is, simultaneous procedures start on consecutive days). A procedure is considered completed once the company has received the final document, such as the company registration certificate or tax number. If a procedure can be accelerated for an additional cost, the fastest procedure is chosen.

How does the Registering Property indicator measure time?

Time is recorded in calendar days. The measure captures the median duration that property lawyers, notaries or registry officials indicate is necessary in practice to complete a procedure with minimum follow-up with government agencies and no extra payments. It is assumed that the minimum time required for each procedure is 1 day, except for procedures that can be fully completed online, for which the time required is recorded as half a day.

What is new in the Registering Property indicator?

This year Doing Business added a new dimension to the quality of land administration index in order to measure the equal access to property rights in 190 economies. The index ranges from -24 to 0, with higher values indicating greater inclusiveness of property rights.

Does the Registering Property indicator record the de jure (the law) or de facto (the practice) situation?

The Registering Property indicator records both law and practice:

1. Procedures: Law and practice. The indicator records all procedures that are legally required (even if not done in practice) and all procedures that are commonly done in practice (even if not required by law), whether they must be completed by the seller, the buyer or a third party on their behalf.
2. Time: Practice. The time measure captures the median duration that local experts indicate is necessary to complete a procedure in practice.
3. Cost: Law or practice in the absence of law. Official fee schedules are the source for cost and where there are no fee schedules, the indicator records the practice (median estimates reported by experts).
4. Quality of land administration index: Law and practice. The reliability of infrastructure, transparency of information and geographic coverage indices record features of land administration systems that are implemented in practice. As for the land dispute resolution index, it includes questions that address both the legal framework and the de facto practices of land dispute resolution mechanisms. Finally, the equal access to property rights index only assesses the economy’s legal framework.