2014 World Bank Land and Poverty Conference Incrementally securing urban tenure: Promising practices, March 24-27, 2014 1818 Street NW Washington DC Vertical Title Schemes to Address the Urban Sprawl Issue Pauline MALAPLATE Conseil Supérieur du Notariat March 25th, 2014 2 Challenging Issue: Urban Sprawl - outward spreading of cities - conversion of agricultural land to residential use. How to make a better use of a limited resource ? March 25th, 2014 4 Densification - higher density cities are more sustainable than low density cities. - Public services Transportation - land use planning is not enough to increase the urban density. March 25th, 2014 5 Vertical Urban Development - simple and appropriate title scheme for vertical urban development in developing and emerging countries - designing land rights that allow vertical development. - designing association rules to manage vertical housing. March 25th, 2014 6 Cityscape of Paris - the City of Paris has the highest urban density in the Developed countries - more than 21,000 inhabitants/sqr. Km - even 42,000 in some parts of the city. March 25th, 2014 7 History of commonhold in France - 1804 Napoleonic Code (art. 664) stipulated that properties - could share a common building or plot governed by a housing collective, while the airspace and floor space within the individual units still be considered privately owned. Differed from traditional English property law which required the legal owner of the residential unit to also own the surrounding land. - improved by Notaries in the 1860s' in Paris - regulations in 1938 revised in 1965 March 25th, 2014 8 Lessons Learned - 150 years of Case Law - thousands of cases to find out the problems and design proper answers trial and error process - this expertise help to save time when drafting: - new regulation contracts templates relating to commonhold March 25th, 2014 9 Interprofessional Group - Notaries - > drafting - land surveyors and/or architects - > description of the building and units - property managers - > management issues March 25th, 2014 10 Framework Legal Tools - Framework legal tools that can be adapted to a country-to-country basis. - Basis of discussion to tailor a solution that fits in the country legal system. - Purpose: - make it possible (regulation) make it happen (implementation) March 25th, 2014 11 Commonhold - system of freehold tenure of a unit - within a multi-occupancy building, - with shared ownership and responsibility for common services. March 25th, 2014 12 Setting up the Commonhold - deed of division of the ownership into several fractions known as "units” - registered at the Land Registry: each unit is identified in the public records March 25th, 2014 13 Association The unit-holders collectively constitute a single legal entity: the unit-holders' association. - Purpose of the association: - - to preserve the building, to maintain and manage the common parts, to safeguard the rights relating to the property or the commonhold, and to carry out all operations required in the common interest. March 25th, 2014 14 Land - Ownership of the land is not a requirement. - Commonhold may be based on: - long-term leases, volumetric divisions (on public equipment's, commercial real estate, … ) March 25th, 2014 15 Units Each unit comprises a private area and a share of the common parts. - This share: - - - is expressed by a fraction. is in proportion to the relative value of each private area, in relation to the value of all of the units. The method of calculation, duly determined by a surveyor, is stipulated in the deed of division setting up the commonhold. March 25th, 2014 16 Common Parts - General common parts: - - undivided property of all the unit-holders used by all of them. - Special common parts: - - undivided property of several unit-holders reserved for their use. March 25th, 2014 17 Commonhold regulations - intended use of the property (private areas and common parts) - allocation of responsibility for the charges among the unit-holders, - rules relating to the enjoyment, use and maintenance of the private areas, - rules relating to the use and maintenance of the common parts, - rules relating to the operation and governance of the commonhold, - obligations of the unit-holders to contribute to the common service charges, - method of payment and method of collecting the sums due, - votes of each unit-holder corresponding to the share of the common parts attached to each unit belonging to that unit-holder. March 25th, 2014 18 Rights and obligations of the unit-holders - unrestricted enjoyment of the private area and the common parts, according to: - the commonhold regulations, the rights of the other unit-holders the intended use of the property. - contribution to all the common service charges - the costs of maintenance, repairs, preservation of the property, property management and the governance of the commonhold in proportion to the fraction of the common parts attached to each unit March 25th, 2014 19 Commonhold governance - Unit-Holders association - General Meeting - Board of the association - Management monitoring - Commonhold manager - Day-to-day management March 25th, 2014 20 Transfer of Units - Information of the new right holder - - Technical Financial - Obligations of the present right holder - Account’s settlement March 25th, 2014 21 Elinor Ostrom’s Design Principles 1. 2. 3. 4. 5. 6. 7. Clearly defined boundaries Rules regarding the appropriation of common resources Collective-choice arrangements that allow most resources appropriators to participate in the decision-making process Effective and accountable monitoring Scale of graduated sanctions for resources appropriators Self-determination of the community recognized by higherlevel authorities Mechanism of Conflict Resolution March 25th, 2014 22 Delivering the Expertise - Bottom Up approach Participative design Low Tech Solutions As simple as possible March 25th, 2014 23 The END March 25th, 2014 24