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Text 18  Advantages of a Land Registration System



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Text 18 
Advantages of a Land Registration System 
Most experts would agree that some type of land registration system is a necessary 
element of a developed market economy. Land is a fundamental resource that is most 
effectively used and exchanged when the rights to land are registered. Designing a land 
registration system requires a comprehensive analysis of why land registration is necessary. 
Some general points of its advantages are discussed below. 
 
 


149 
1. Greater Tenure Security 
Land registration provides a degree of certainty and security to the owner as well as to 
others having rights in land. Such secure rights are particularly important for agricultural land. 
Economists and others have long argued that increasing security of individual property rights 
in land stimulates private investment and agricultural development because the individual is 
more willing to make long-term improvements.
2. Greater Access to Credit 
The registration of rights to land establishes those rights in the eyes of the law and 
provides documentary evidence necessary to prove land rights. The holder of the land rights 
thereby becomes "creditworthy" and can pledge his land rights as security for a loan.
3. Dealings in Land More Expeditious, Reliable, and Inexpensive 
Without reliable land registers, land transactions may be expensive, time consuming, 
and ineffective. It is normally necessary to establish that the reputed owner actually has the 
legal right to alienate the property. A land registry makes it possible to use simpler, standard 
forms of conveyance.
4. Establishment of a Land Market 
A land registration system can remove such obstacles as extreme procedural 
difficulties in transferring land, lack of land market information, unclear delimitation of 
individual and group rights, insecure ownership, etc. and stimulate a land market. A 
functioning land market permits economies to use land more appropriately, and generally 
facilitate the establishment of efficient and consistent land policies. 

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