Private Initiatives

 property rights refer to a bundle of entitlements defining an
owner’s rights, privileges and limitations to the use of a
resource.
 An efficient structure of property rights is said to have three
characteristics:
 Exclusivity (all the costs and benefits from owning a resource
should accrue to the owner),
 Transferability (all property rights should be transferable from
one owner to another in a voluntary exchange) and
 Enforceability (property rights should be secure from seizure or
encroachment by others).

 Conventional economic theory assumes that a
resource owner with these three characteristics has
a significant incentive to use that resource
efficiently, because a loss of value of this resource
represents a personal loss.
 In addition, clearly defining and assigning property
rights should resolve environmental problems by
internalising externalities and relying on incentives
for private owners to conserve resources for the
future.

 property rights (Ostrom, 1990; Bromley, 1991) encompass a
few basic categories:
 • Private property rights are held by individuals and
firms and can be transferred between them, most of
the time through the exchange of money. Private
property rights are the basis for capitalism to the
point that it cannot exist without them.

 • In state-property regimes, governments own and control
property.
 This type of regime exists to varying degrees in all countries
of the world.
 For example, parks and forests are frequently owned and
preserved by governments.
 In communist countries, governments may own all resources.
Problems can occur with state-property rights when the
incentives of rule-makers for resource use diverge from the
collective interest.
 For example, toxic and radioactive waste had accumulated in
ex-USSR, because central plans which established national
priorities favoured growth over environmental protection.

 • Common-property regimes refer to properties
jointly owned and used by a specified group of co-
owners through formal (specific legal rules) or
informal (protected by tradition or custom)
entitlements.
 While there are numerous successful examples of
common-property regimes, unsuccessful examples
exist also. Population pressure and increased
demand from outsiders undermine collective
cohesion, sometimes leading to overexploitation
and lower incomes for all.

 Open-access regimes can be exploited on a first-come, first-
served basis, because no individual or group has the legal
power to restrict access. The consequences of open access
have become popularly known as what Hardin (1968)
misleadingly called ‘the Tragedy of the Commons’.

 Property rights may be created through private initiation
 Rights are created through private initiatives when a private
party initiates the process of rights formation
 Private property rights creation has been on the increase in
Tanzania as people get more familiar with the laws and due
to introduction of PPP
 Private Real Estate Companies are now more involved in
initiating property rights formation

 Individuals are also involved
 Private property rights initiatives may involve redefining old
rights
 In such cases the original rights are surrendered before
formation of new one

There are several laws which are applicable
 The Land Act and Land Regulations
 The Urban Planning Act
 The Survey Ordinance

 Instructions to create property rights are received from a
client
 Client is the person who wants to initiate the property rights
formation
 The applications are made to the Land Officer
 The Land Officer requests the Director of Planning to make a
plan for the area requested

 The town planner responds on behalf of the director by
preparing a plan for an area
 The planner carries out the task by preparing a town plan (TP)
drawing
 The TP drawing when ready should be taken to the Director
of planning for approval
 Once the TP has been approved by the Director of Planning, it
is returned to the Land Office

 The Land Officer has to request for survey of the plots as depicted
on the TP drawing from the Surveyor in-charge using SF 36
 The surveyor in-charge issues survey instructions to surveyors at
his office
 The surveyors carry out the work and prepare a survey plan which
at this point is only a draft
 The survey plan has to be taken to the Director of Surveys and
Mapping for checking and approval

 The survey plan prepared by the surveyors is checked by the
Director of Survey & Mapping
 One of the issues that the DSM checks is possible overlaps of
property interest of the proposed survey plan against existing
registered plans
 The plan may be approved or rejected by the DSM
 Once the plan has been approved it is registered, given a
registration number and hence forth it is referred to registered
survey plan

 The registered plan is returned to the LO
 The LO gives a copy to the client
 The client is instructed to request to be allocated
plots as per the plan
 The client fills Land Form 19 Application for Right
of Occupancy

The application for RO is made in LF 19 and a fee of 20,000
Practice has been to require the applicant to produce the
following
◦ A Letter from the Local Government
◦ Boundary inspection form
◦ Assent of the Town Planner
◦ Assent of the Surveyor
◦ Assent by neighbours
These steps are taken to mitigate the possibility of a land conflict

 Applications for RO are made to the Commissioner for Lands
 The commissioner may allocate the Land directly or after
consultation with the responsible land allocation committee

 Land rent
 Stamp duty
 Reg fee % land rent
 Cert fee
 Survey fee 35-50 per sq
 Deed plan fee
 Premium % value of land

 Acknowledgment of Payment is the document issued to the
applicant when he has paid the required fee as evidenced by
exchequer receipt
 This document bears a passport size picture and signature of
applicant
 After issuing the document LO requests for preparation of
deed plan and
 Document typist prepares draft bill Sent to client for signing

 Land officer advices commissioner on whether or not the land
should be allocated to the applicant after considering all
relevant details including but not limited to;
• Passport for Citizenship
• History of the plot if there any unresolved issues
• Memmorundum of association if it’s a company
Commissioner for Lands assents the draft CRO
Official Seal on the CRO –statistics section of the MLHHSD

Registration- receives the CRO from the commissioner,
 A card check is done to check details of prepared ct,
 A deed plan check -coordinates check is done,
 Review by a senior registration officer to check all matters
are in order is done
 If ok the CRO is taken to assistant registrar for approval,
 Once signed by the assistant registrar the CRO is formally
registered in records
 Out of the two copies that are received by the registration
office for processing – one copy is kept by the registrar for
official use
 The other copy is given to the applicant