Property Formation PDF

Unit 5 Property formation  Cadastral parcels are dynamic Land Subdivision: “Act of dividing one land parcel into smaller parcels for the purpose of sale, development or bequeathing” Land Consolidation: “Act of regrouping small land parcels into a larger parcel for the purpose of development, adm...

Unit 5 Property formation  Cadastral parcels are dynamic Land Subdivision: “Act of dividing one land parcel into smaller parcels for the purpose of sale, development or bequeathing” Land Consolidation: “Act of regrouping small land parcels into a larger parcel for the purpose of development, administration efficiency, or nature protection”  Introduction Subur ban hom e r e e T  What is property/real property / Above the real estate? ground Real property is land which is divided into property units. Underground C ondos Joint property?  Joint property is property with more than one owner  It is an area jointly owned by several different property units with fixed shares participation goes with the property unit and not with its owner personally harbor, road, parking lot, playing ground, etc.  Introduction Easement?  An easement is the right to use the real property of another without possessing it.  Right of way, right to collect fruit, right to fish, Right of way etc  Property formation 1. Definition The creation of new real property units out of land from pre-existing one or by the amendments of existing units. In other words, Property formation means both the formation and re-formation of property units. Re-formation of property units means an amendment of pre- existing property units without the formation of new ones. Property formation is a measure where by The division into properties is changed Easements are formed, amended or cancelled, or A building or other construction belonging to a property is transferred to another property  Real property formation is done:-  by investigation of the current situation,  legal examination of the suggested change,  meeting with landowner  production of cadastral plans and other legal documents,  decisions of the change in property structure,  the amount of compensation etc, making a cadastral dossie (also in digital format),  and updating the public Real Property Register (including the cadastral map) 7  2. Property Formation Measures Real property formation includes  Re-allotment  Subdivision  Partition  Amalgamation  Re-formation of property units takes place through re-allotment.  What are the conditions to be fulfilled for property formation to be effected?  The property unit which is formed or reformed should satisfy the following requirements  It must be lasting suited for its purpose in terms of location (the case of air port and polluting industries)  Suitability of the property unit for its purpose (industry, residence house, etc.)  lasting use for its purpose within the foreseeable future,  It should suit the design of property unit on the ground  It should have access to Infrastructure like road, water supply system, sewerage system, etc  It shouldn’t violet environmental regulations  Should be In line with detailed development plan/area regulation  Conservation of the natural and cultural environment.  FORMATION PROPERTY UNITS 1. Subdivision  Subdivision is one of property measures used to create new property units from the existing one  It is the commonest method for forming new property units.  By means of subdivision one can subdivide a certain area of land or water from an existing property unit to form a new property unit.  Through subdivision, a certain cartilage of a property unit or the share of a property unit in the joint property may be segregated to constitute a property unit in its own right.  H ous e S ub ur ba n ho m e H o us e  The portion of a property unit parceled off is called a subdivided lot. What remains of the original property unit after the parceling is called the residual property unit.  The residual property unit and lot together are called subdivided parcels. The whole of the original property unit with which subdivision begins is called, in its undivided state, a subdivision unit. When subdivision takes place from a joint property unit, all the property units with a share in joint property unit become residual property unit. Subdivision unit Residual AM/EE/45/12/3/1 property unit Lot Subdivided parcels  Subdivision  Simultaneously with subdivision, an easement can be formed b/n a lot and residual property unit or among lots and residual property units if more than one lots are formed from a subdivision unit.  Easement that affect an area out of a lot and/or residual property cannot be created by subdivision. if it is needed it will be formed through reallotment.  It is possible to create a joint property unit from the subdivision unit which is common to the residual property unit and the lot 13  S ubur ban hom e Sub urb an hom e Subdivision  What should be considered when subdivision is taken place 1. Whether the property unit AM/EE/46/4/15/1 subjected to subdivision is AM/EE/46/4/100/1 encumbered by easement If the easement is Localized  An easement without Easemen definite area t lot Residual property unit  S ubur ban hom e Sub urb an hom e Su b u r b a n h o me Subdivision 1. Whether the subdivision unit has an easement on other property unit (servient Easement property unit)  Developed several dwellings in a property unit subject to subdivision no additional effect  Undeveloped additional lot effect on the servient Residual property unit. property unit  Conti….. 1. Whether the subdivision unit has a share on joint property  The share of the subdivision unit may be partitioned between the subdivided parcels or allocated for either of the two – it is not possible to increase or reduce the original share 2. Ownership cannot be directly divided between lot and residual property unit by means of subdivision thus the application for the measure is made by the owner of the subdivision unit 3. Whether the subdivision unit is encumbered by mortgage Both lot and residual property will be encumbered with a joint mortgage A mortgagee should approve the measure  Su b u r b a n h o me Su b u r b a n h o me Su b u r b a n h o me 2. Amalgamation  Amalgamation is one of the property formation measures 100/8 through which new property unit is created by combining 25/3 property units or subdivided 12/5 parcels and property units.  Property units belonging to different persons cannot be amalgamated to form a single property unit.  Subdivided parcels Cond os Amalgamation  Amalgamation is possible if the property units to be AM/EE/23/4/16/2 amalgamated have the same owner  For jointly owned property AM/EE/23/4/16/1 units to be merged, the joint owners should have similar shares in both property units. Abebe ¾ Abebe ¾ Kebede ¼ Kebede ¼  Amalgamation  All rights and obligations belonging to the property units will be transferred to the new unit  If property units to be amalgamated are mortgaged, there should be a special arrangement that protect the mortgagees’ right in the property units. B u il d in g 2 Ho u s e 3. Reallotment  Reallotment is a cadastral procedure whereby a land can be transmitted from one property unit to another AM/EE/36/5/12/2 AM/EE/36/5/100 /1  Refers re-formation of existing property units.  Reallotment can mean the transfer of land from one property unit to another. New boundary resulting from  Easements and joint property reallotment units can be formed by re- allotment. Disappearing boundary  take place by agreement between the owners of the property units affected. Select this paragraph to edit Select this paragraph Select this paragraph to edit to edit  Through reallotment  Easements and joint property units can be formed,  shares in joint property units are transferred from one property unit to the other,  easements can be amended or cancelled  Reallotment can take place by agreement between the owners of the property units affected except in the case of planning implementation which is to be effected coercively.  Re-allotment can mean a variety of measures, namely:  Transfer of land from one property unit or joint property unit to another property unit or joint property unit.  Formation of a joint property unit  Transfer of a share in a joint property unit from one property unit to another  Formation, amendment or cancellation of easements  Transfer of buildings other construction belonging to one property unit to another property unit B u il d in g 2 Ho u s e Reallotment Land transfer  Through reallotment, AM/EE/36/5/12/2 land can be AM/EE/36/5/100/1 transferred from one or more property units to one or more others New boundary resulting from reallotment Disappearing boundary 24 Reallotment 2/5 2/4 2/7 2/4 2/5 2/3 2/6 2/5 2/4 2/6 2/3 2/5 2/4 2/5 Land consolidation 2/4 2/3 2/6 2/7 2/5 2/3 2/3 2/4 2/6 Prior to reallotment 2/5 2/3 2/7 2/6 2/4 After reallotment  The easement or utility easement goes with the transferred land.  Unlocalized easements will apply in the servient property unit as it stands after reallotment  The easment will increase or diminish as the servient property unit increase or decrease in size because of reallotment  Fair compensation will be effected for the differences in the value of lands granted and received  Reallotment 1. Formation, amendment and cancellation of easements  The easement must be essential for the appropriate use of the property unit in order to be formed  Easement apply in all perpetuity. In some cases formation of fixed term easement is possible (e.g. right of way)  H ou se B u il d in g 2 Reallotment  Amendment of an easement is the movement of an easement from one point to another with in the servient property unit AM/EE/36/5/6/2 AM/EE/36/5/18/4 Old position of X easement New position of easement  H ou se B u il d in g 2 Reallotment  Cancellation of an easement means that the whole easement ceases to apply AM/EE/36/5/12/36 AM/EE/36/5/7/7 Old position of X easement AM/EE/36/5/14/10 New position of easement in new property unit  H o u s e H o u s e H o u s e H o u s e H o u s e Ho u s e 1. Formation of joint property unit  A joint property units 3/4 can be formed by 10/5 reallotment      It can be formed for   11/9 2/6 purpose of lasting importance for the joint- 13/6 15/5 owned property units 1/5  It can also be formed in connection with Joint property subdivision 1. Conditions to be fulfilled for reallotment to take place  The betterment condition  When more suitable property subdivision or more appropriate land use is achieved  Benefits gained outweigh the cost and inconvenience that the measure entails  The improvement condition  The property unit subjected to reallotment should be improved  Reallotment The opinion condition  When those affected by reallotment opposed the measure and have notable reason for opposing it, reallotment will not take place Property unit protection  When the alteration substantially impairs the value of a property unit , reallotment will not take place. it is optional when it would be done based on the agreement made between the affected owners or the land is entered as public space  Reallotment 1. Rules of compensation for reallotment  The deference in value before and after the reallotment has to be made good  The owner of a property unit, which appreciates, has to pay compensation to the owner of property, which depreciates  If the depreciated property unit is encumbered with mortgage, the mortgagee should be paid from the compensation  4. PARTITION  When several persons jointly own a property unit with a specified share each, i.e. have joint title in it, one or more of them may request that his share be hived off into a separate area of land, forming a new property unit.  In this way the share in the jointly owned property unit can be converted into a separate property unit in its own right.  Always, when partition takes place, the whole of the property unit affected is divided up into new property units.  The parcels are usually termed “partition lots”. These lots form new property units. After the partition, the original property unit no longer exists.  In order for a partition to take place, it does not have to be desired by all the joint owners of a property unit. If one joint owner applies for cadastral procedure, this is sufficient Causes of change of property structure  Infrastructure development: road, irrigation system, etc.  Divorce  Marriage  Change of development plan  Gift  Land rent  Land consolidation Etc.  Cont- 36  Experience of Amhara Region 1. Causes of change of property structure – Infrastructure development – Such as road, irrigation system, etc – Divorce-Separation of family (wife and husband) – Change of development plan – Gift – Land rent – Land consolidation 37  Experience of Amhara Region 1. Procedure /work flow of property formation – A client applies to the Kebele Land Administration Office in verbal. – The KLAE hears the request and checks whether the parcel can be subdivided, gives information to the client about the fee and the procedure. – The client fills the application form if he/she agrees – The KLAE receives the application and records it in the application journal 38  Experience of Amhara Region – Appointment is given about the date of property formation measures to be taken place; – Public display – If no compliant is submitted, the property formation measure would take place at the appointed date – Sketch map will be prepared that show the situation before and after the property measure – Prepares minute and all the participants sign on it 39  Experience of Amhara Region – Cadastral decision is made by Kebele Land Administration expert – Receives the fee for the service, – Updates changes in the registry book – Copy the updated data from the registry book into green book/ holding certificate – Issue the green book for the client 40  Experience of Amhara Region – For manual registration system, the KLAE sends the changes to Woreda land registrar. – Stores all documents in systematic way at kebele or Woreda level 41  Point of discussion  What are the conditions to be fulfilled for property formation to be effected?  What should be considered when subdivision is taken place? 42