March 19, 2007	Monday	Safar 29, 1428

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ISLAMABAD, March 17: Pakistan Institute of Development Economics (PIDE) has proposed establishment of property rights through a secure system of land title management.

According to research conducted by PIDE, “if the government were to develop a system of guaranteeing title, it would not only be of benefit to those involved in land transactions but would also enhance the marketability of land as well.”

The research paper, supervised by PIDE Director Dr Nadeemul Haq, suggested the government to set up a system of registration of titles — going beyond a project aimed at automation of records of rights to land and transactions in property being tried in the Punjab — and completely scrap the obsolete and dysfunctional systems managed by Patwaris, Tehsildars, Tapedars and Mukhtiarkars.

Currently, the Registration Act envisages the registration of documents and not registration of titles. The registrar registering a document records a transaction but does not guarantee that the transaction is valid.

The entries in the records-of-rights can be challenged in courts since there is no guarantee of title envisaged in the law. The Transfer of Property Act also does not envision that the state will guarantee title to property.

The paper proposed to establish a centralised land registry system in the form of a central register of title of urban land, the most expensive and commercially attractive land.

The provincial governments should give the responsibility of determining title of such land to the Excise and Taxation Department (E and T).

This department has the most complete and accurate record of urban properties in the province, and hence best suited to shoulder this burden. To be effective, it should have the legal mandate and the necessary resources in terms of finances, trained manpower, and hardware and software equipment.

Moreover, the registration department should be bifurcated and the section dealing with urban properties should be placed under the E&T department. Alternatively, the institutional arrangement proposed above can be placed under the board of revenue by establishing a revenue authority.

As a first step in the long-term strategy to design and implement a system of title registration, there should be a requirement for compulsory registration of all documents relating to property, including sale agreements, declaration of gifts, awards, transfers and powers of attorney (in the last case, with the sub-registrar of the area in which the property is located).

Any party claiming title through adverse possession should be required, within six months of acquiring such title, to register their claim. A system of registering deeds can provide the platform on which a system of registering titles can eventually be built.

The paper also proposed that general powers of attorney should be abolished altogether and Benami transactions will have to be declared unlawful. Any suit with respect to any immovable property should be compulsorily registered with the registrar of the high court.