
doi: 10.2139/ssrn.286746
This paper builds on economists' theory that land tenure security can create access to credit and capital for emerging economies. The paper posits that, while the land title security that a nation's land title registration system provides may suffice to make mortgage loans available from local banks and mortgage lenders, emerging economies may benefit in important additional ways if their land titles are sufficiently secure to attract foreign investors. The paper discusses the strengths and weaknesses of private land title insurance as an enhancement to the land title security that a developing country's laws and land title registration system can give. The paper applies the preceding concepts to the relatively new legal concept of transferable land use rights in The People's Republic of China. Making title to its new transferable land use rights secure is of paramount importance if China is to attract foreign investors and sustain its new market economy. After introducing the economic theory to lawmakers, the author examines China's existing real estate laws, regulations, and land title registration system and identifies specifically where risks exist to owners, lessees, and lenders' titles that may discourage investment of capital. Based on the risks discovered, the author then recommends that the government improve land title security for investors by (a) adhering to the rule of law, (b) amending certain existing laws and regulations and adopting implementing regulations to reduce ambiguity, (c) adopting laws and practices that can make China's land registration system more conclusive, reliable, accessible, efficient and economical, and (d) permitting private title insurance, but requiring that it be tailor-made to create improved land title security for investors in real estate interests in China.
Land titles, Property Law and Real Estate, Law, Land tenure
Land titles, Property Law and Real Estate, Law, Land tenure
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