land governance assessment framework in the philippines thematic area 4. public provision of land...

LAND GOVERNANCE ASSESSMENT FRAMEWORK IN THE PHILIPPINES

THEMATIC AREA 4. PUBLIC PROVISION OF LAND INFORMATION

June 2013

Theme 4: Public provision of land information

LGI-16: Completeness of registry

•Mapping of registry records•Relevant private encumbrances•Relevant public restrictions•Searchability of register•Records accessible•Timely response to search•Key information on concessions

LGI-17: Reliability of records

•Customer satisfaction focus•Registry up to date

LGI-18: Cost-effective, accessible, sustainable

•Cost of registration•Financial sustainability•Capital investments

LGI-19: Transparency •Fees available publicly•Informal payments discouraged•Public land disposal modalities

DimensionsIndicators

LGI-16. Completeness

This indicator assesses the extent to which the registry provides a complete geographic coverage of land parcels and its accessibility to land users.

LGI 16 Dimension (i) - Mapping of registry records

The share of registered private rights readily identifiable on a map is high.

AssessmentA – More than 90% of records for privately held land registered in the

registry are readily identifiable in maps in the registry or cadastre. B – Between 70% and 90% of records for privately held land registered

in the registry are readily identifiable in maps in the registry or cadastre.

C – Between 50% and 70% of records for privately held land registered in the registry are readily identifiable in maps in the registry or cadastre.

D – Less than 50% of records for privately held land registered in the registry are readily identifiable in maps in the registry or cadastre.

Findings

The RoD/LRA does not have a copy of cadastral maps. Cadastral maps and records in the DENR does not have

title information. While DENR and LRA are both authorized to approve

subdivision plans, the fact that they do not share these records for reasons that they use different projections, among others; makes the registry and cadastral records utterly incomplete.

Recommendations

There is a need to improve the sharing of land information and records between the DENR and LRA/RoDs.

The use of maps references should be mainstreamed in the RoD operations.

DENR must be able to continuously update the Cadastre. Both DENR and the RoD should share land information

with the LGUs so that the real property information and tax rolls can be regularly updated.

LGI 16 Dimension (ii) - Economically relevant private encumbrances are recorded

Assesses completeness of registry information about economically relevant private encumbrances.

AssessmentA – Relevant private encumbrances are recorded consistently

and in a reliable fashion and can be verified at low cost by any interested party.

B – Relevant private encumbrances are recorded consistently and in a reliable fashion but the cost of accessing them is high.

C – Relevant private encumbrances are recorded but this is not done in a consistent and reliable manner.

D – Relevant private encumbrances are not recorded.

Findings

Relevant private encumbrances are consistently recorded in a reliable way and are readily accessible to anybody who pays the corresponding fee: Registration and release of mortgages Court or judicial orders – PhP 60 Long-term leases Sale of portion or partial transfer Conditional sale Option to purchase or promise to sell Sale subject to redemption or repurchase/redemption of properties sold Surety and bonds Powers of attorney, letters of administration, appointment of guardian,

resolution or revocation – PhP 120 Levy

LGI 16 Dimension (iii) - Socially and economically relevant public restrictions or charges are recorded

Assesses completeness of registry information about economically relevant public restrictions and charges.

Assessment A – Relevant public restrictions or charges are recorded consistently

and in a reliable fashion and can be verified at a low cost by any interested party.

B – Relevant public restrictions or charges are recorded consistently and in a reliable fashion but the cost of accessing them is high.

C – Relevant public restrictions or charges are recorded but this is not done in a consistent and reliable manner.

D – Relevant public restrictions or charges are not recorded.

Findings

Relevant public restrictions are recorded consistently and in a reliable fashion as annotation at the back of the titles and are readily accessible with payment of minimal fees: Levy Tax liens – PhP 30 Easements Right of way, public highways or roads Limitation to disposition of properties arising from

agrarian reform laws and regulations

LGI 16 Dimension (iv) - The registry (or organization with information on land rights) is searchable

AssessmentA – The records in the registry can be searched by both right

holder name and parcel.B – The records in the registry can only be searched by right

holder name.C – The records in the registry can only be searched by parcel.D – The records in the registry cannot be searched by either right

holder name or parcel.

Findings

Searching for titles by title number or cadastral lot number has been made faster and easier by the LARES.

Search for titles using name of title holder is also possible but is done manually.

Almost all Registry of Deeds Office are already computerized (LARES).

LGI 16 Dimension (v) - Accessibility of records in the registry (or organization with information on land rights Assesses accessibility of Information in the registry by all interested parties.Assessment A – Copies or extracts of documents recording rights in property

can be obtained by anyone who pays the necessary formal fee, if any.

B – Copies or extracts of documents recording rights in property can only be obtained by intermediaries and those who can demonstrate an interest in the property upon payment of the necessary formal fee, if any.

C – Copies or extracts of documents recording rights in property can only be obtained by intermediaries upon payment of the necessary formal fee, if any.

D – Records on land rights are not publicly accessible or can only be obtained by paying an informal fee.

Findings

It is easy for anyone to obtain records in the registry, as long as the proper formal fees are paid.

Access to such records require the identification card of the owner and representative.

Some registries would require authorization of the owner to secure information.

LGI 16 Dimension (vi) - Timely response to a request for access to records in the registry

Assesses timeliness of response to a request for access to records in the registry

Assessment A – Copies or extracts of documents recording rights in property

can generally be obtained within 1 day of request. B – Copies or extracts of documents recording rights in property can

generally be obtained within 1 week of request. C – It generally takes more than 1 week after request to produce a copy

or extract of documents recording rights in property. D – It is not unusual that an extract or copy of a record cannot be

produced in response to a request as the original record cannot be located.

Findings

It is easy for anyone to obtain records in the registry, as long as the proper formal fees are paid.

Access to such records require the identification card of the owner and representative.

Some registries would require authorization of the owner to secure information.

LGI-17. Reliability

This indicator assesses the reliability of the information contained in the registry.

LGI 17 Dimension (i) - Focus on customer satisfaction in the registry

Checks whether service standards of processing times and user charges are published and monitored.

AssessmentA – There are meaningful published service standards, and the

registry actively monitors its performance against these standards.B – There are meaningful published service standards, but the

registry does not actively monitor its performance against these standards.

C – Meaningful service standards have been established, but have not been published and there is little attempt to monitor performance against the standards.

D – There are no meaningful service standards set and no attempt to monitor customer service.

Findings

The LRA and RoDs have published service standards (Citizen’s Charter) that are displayed prominently in the offices.

The Registries, however, do not actively monitor their performance against the published standards.

Recommendations

The LRA and RoDs should be encouraged to actively monitor their performance against the published standards.

LGI 17 Dimension (ii) - Registry/ cadastre information is up-to-date

Assesses whether land information is up to date.

AssessmentA – More than 90% of the ownership information in the

registry/cadastre is up-to-date.B – Between 70% and 90% of the ownership information in

registry/cadastre is up-to-date. C – Between 50% and 70% of the ownership information in

registry/cadastre is up-to-date. (for records of the registry)D – Less than 50% of the ownership information in the

registry/cadastre is up-to-date. (for the cadastre)

Findings

An estimated 40% of A&D lands remain to be titled and there are still many municipalities not completely surveyed (DENR currently has 400 on-going cadastral survey projects).

Studies undertaken by LAMP2 identified several factors that discourages registration of subsequent transaction, primarily the payment of transfer taxes.

Recommendations

Complete the survey of all municipalities and the titling of all A&D lands.

Review the structure for the taxes on transfers of real properties with the view of reducing the rates to encourage the registration of subsequent transfers.

LGI-18. Cost-effectiveness and sustainability

This indicator assesses the cost-effectiveness and financial sustainability of land administration services.

LGI 18 Dimension (i) - Cost of registering a property transfer

Assesses whether the cost of registration services is justifiable in terms of the economic benefits that can be derived from registration.

AssessmentA – The cost for registering a property transfer is less than 1% of the

property value. B – The cost for registering a property transfer is between 1% and

less than 2% of the property value.C – The cost for registering a property transfer is between 2% and

less than 5% of the property value.D – The cost for registering a property transfer is equal to or

greater than 5% of the property value.

Findings

Registering transfer of real property incur a cost of not less than 10% of its market value.

Capital gains tax alone accounts for 6% (of the assessed value, sales value or zonal value whichever is higher), Documentary Stamp and additional 1.5% .

The payment of transfer taxes is always cited as the primary deterrent to registration of transfers.

An added cost is the payment of local transfer tax (0.5%) to the LGU for transfer of tax declaration to the name of the new owner.

Recommendations

Review the structure for the taxes on transfers of real properties with the view of reducing the rates to encourage the registration of subsequent transfers.

LGI 18 Dimension (ii) - Financial sustainability of the registry

Checks if the majority of the cost of running the registry is recovered in the form of user fees. Total operating costs include all non-capital investment costs associated with registry operation. Registry operating costs do not include long-term capital investment or associated depreciation expense.

Assessment A – The total fees collected by the registry exceed the total registry

operating costs.B – The total fees collected by the registry are greater than 90% of the total

registry operating costs.C – The total fees collected by the registry are between 50% and 90% of

the total registry operating costs.D – The total fees collected by the registry are less than 50% of the total

registry operating costs.

Findings

The provision of services to the public by the LRA and the different registries actually generate revenues in excess of the costs to operate.

In the January – June 2012 period the agency Quarterly Report of Income showed a total of PhP 2,308,363,865.42 in revenue which already exceeded by more than 100 % its annual budget of PhP 925,706,000.

However, its revenues are remitted to the National Treasury.

LGI 18 (iii) - Capital investment Checks whether capital investments are sufficient

AssessmentA –There is significant investment in capital in the

system to record rights in land so that the system is sustainable but still accessible by the poor. (for the registry)

B – There is investment in capital in the system to record rights in land but it is insufficient to ensure that the system is sustainable in the medium to long-term although the system is accessible by the poor. (for the cadastre)

C – There is investment in capital in the system to record rights in land but it is insufficient to ensure that the system is sustainable and the poor have limited access.

D – There is little or no investment in capital in the system to record rights in land.

Findings: the computerization project (LTCP) of LRA

and RDs was a huge capital investment that would not have been possible with purely government resources

3 Billion allocation under the DENR budget to complete the cadastral surveys in the Philippines, until 2016

additional financing under LAMP2 will roll out the land administration management system (LAMS) to all regions boosting the capability of the LMB/LMS to provide services

LGI-19. Transparency

This indicator assesses whether fees are determined and collected in a transparent manner.

LGI 19 Dimension (i) - Schedule of fees is available publicly

Checks existence of clear schedule of fees for different services and if publicly accessible with receipts being issued for all transactions

AssessmentA – A clear schedule of fees for different services is publicly

accessible and receipts are issued for all transactions.B – A clear schedule of fees for different services is not publicly

accessible, but receipts are issued for all transactions.C – A clear schedule of fees for different services is publicly

accessible, but receipts are not issued for all transactions.D – A clear schedule of fees for different services is not publicly

accessible and receipts are not issued for all transactions.

Findings

The fee schedule for the transactions in the Registries are accessible to the public as this are published in the Citizen’s Charter posted in the offices of the LRA and the different RDs nationwide. The fees are also published in the LRA website.

LGI 19 Dimension (ii) - Informal payments discouraged

Checks whether mechanisms to detect and punish bribes are enforced

AssessmentA – Mechanisms to detect and deal with illegal staff behavior exist

in all registry offices and all cases are promptly dealt with.B – Mechanisms to detect and deal with illegal staff behavior

exist in all registry offices but cases are not systematically or promptly dealt with.

C – Mechanisms to detect and deal with illegal staff behavior exist in some registry offices.

D – Mechanisms to detect and deal with illegal staff behavior are largely non-existent.

Findings

The LTCP computerized system already serves as a major deterrent in illegal staff behavior.

the computerization largely minimize informal payments, since all assessments are computerized, and there is less discretion in terms of priority in servicing of clients.

While informal payments are generally discouraged, it is difficult to lodge a complaint. Clients generally do not openly complain about informal payments being asked.

land governance assessment framework in the philippines thematic area 4. public provision of land...

Documents

sharing of land information

cadastral records

searchkey information

title information

copy of cadastral maps

real property information

use of maps references

philippines thematic