Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 20/03/2009
Author
Published By ECONOMIC COMMISSION
Edited By Tabassum Rahmani
Uncategorized

GUIDANCE AND GOOD PRACTICE FOR THE APPLICATION OF FEES AND CHARGES

During the Working Party on Land Administration’s fifth session, it was decided that a study of existing practices should be undertaken on fees and charges for Cadastre and registration services in the United Nations Economic Commission for Europe (UNECE) region (ECE/HBP/WP.7/2007/10, para. 24 (b)). The present document is based on the outcomes of a questionnaire discussed during the fifth session that surveyed current government practices in the region (ECE/HBP/WP.7/2007/4). This document’s objectives are to provide guidance and promote good practice in the application of fees and charges in UNECE member States. It elaborates on the questionnaire’s findings on existing knowledge and country experiences by identifying existing trends and principles in financing real property cadasters and registers as well as the factors that influence the setting of fees and charges. The document argues that fees and charges are inextricably linked to cost management and recovery. All these variables are fundamental aspects of the sustainability of land administration in a country.

The importance of land and property markets to encourage capital accumulation in the financial sector and promote economic growth has been widely recognized. Property registration and cadastral services are fundamental to the operation of these markets and can be implemented in many different ways. Some might be more efficient than others, but all systems come at a cost. It is crucial to balance the costs against the benefits, and thus the need to apply appropriate fees and charges is of major importance. Fees that are too high, or perceived to be too high, may actively depress a market. Fees that are too low may not recover enough costs to create, maintain or further develop Cadastre and registration systems. 2. The Working Party on Land Administration promotes the development and implementation of sound land administration policies, including the administration of land management, the funding and charging of services and activities, and access to land information. In 1996, the UNECE publication Land administration guidelines (ECE/HBP/96) identified the factors that should be taken into account when developing legislation, organizations, databases, maps and funding mechanisms required to implement and maintain a solid land administration system, frequently referred to either as a cadaster or a land registration system. Cost management and cost recovery are fundamental aspects of the creation and sustainability of land administration services. Fees and charges are inextricably linked to these variables; they constitute important means by which the operating costs of land administration can be recovered and are also a tool to promote and develop land markets. This holds true in particular in countries with low-income levels.

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