FIG Commission 9
- Valuation and the Management of Real Estate
Working Group 9.1
Manual and due diligence protocol for the ‘Valuation of Unregistered
Lands and informal property’
Introduction
Following
UN-Habitat/GLTN’s guide no. 1/2018,
which explains why valuations of unregistered land
and informal property are needed, and
RICS Research
(valuation of unregistered land),
UN-Habitat/GLTN is developing a robust, due
diligence protocol and manual (including basic
checklists and sample formats) on the registration
of unregistered lands.
Value, and its attribution to unregistered and/or
informal land & property, is a key component to
sustainable land administration systems and is a
critical component of effective land acquisition,
taxation and transfer processes. Indeed, it can be
argued that ‘value’, whether defined in purely
economic terms or in a wider context of social,
environmental and cultural value, is the key to
establishing tenure security and identification of
legitimate ownership. ‘Value’ is directly linked to
local and regional revenue generation, functioning
formalized land & property markets and is a central
enabling factor within land-based financing (as
underlined within the New Urban Agenda). However,
this is a difficult area, with limited professional
capacity and knowledge, and a chronic lack of data
and in many cases cultural/social understanding.
Several organisations, agencies and NGOs (GLTN,
RICS, FIG, UNFAO, Namati) have attempted to better
understand unregistered land valuation and informal
markets through extensive research, policy guides,
international guidelines (VGGT) and due diligence
standards (ILMS & UNFAO – lawyers advising on land
acquisition). This has resulted in strong empirical
evidence and potential governance but not in a
practical, field-based due diligence protocol for
how to arrive at appropriate and reasonable market[1]
‘value’. This manual has a great opportunity to
synthesize previous outputs, bring closer
collaboration between interested parties through the
formation of a working group, and help ‘value’
become more effective and appropriate during the
land formalization, acquisition, transfer and
taxation process.
Policy Issues
The potential output has enormous ramifications for practice
and could be extremely influential. It is important to maintain the
collaborative nature of the initiative and to include other significant
organisations such as the International Financial Corporation (IFC),
ILMS coalition and International Valuation Standards Council (IVSC).
It is also important that this output is directly connected to:
Working paper Valuation and the Management of Real
Estate.
What's New
Progress:
A masterclass was planned to take place at the World Bank meeting in
March 2020 which was cancelled due to COVID-19. Instead an online meeting
was held, and all experts involved in this activity were looking forward to
having another consultation face-to-face in Amsterdam during FIG Working
Week. The FIG Working Week was cancelled as well. The planned session was
meant as an interactive consultation, bringing together expert views on a
new unregistered land valuation manual that will cover about 70 percent of
the land surface of the world. This consultation will now also be changed to
an online version. The intention was to discuss the preliminary work of the
authors, initial concepts that need to be recognised and included and also
act as an opportunity to engage the global FIG family of land professionals.
Authors of the manual are Dr. Mike McDermott and Dr.
Peter Wyatt, who had looked forward to an open discussion
on the format of the GLTN manual and a debate on the changing nature of
valuation and its critical interaction with developing world land security,
informality and differing forms of tenure.
Purpose of CFP:
The aim of this project is to develop a due diligence
protocol/standard and field manual specifying the procedures required from
land professionals, surveyors and valuers to implement the GLTN ‘valuation
of unregistered land’ policy guide principles and conclusions.
Brief Background of the Project
The Global Land Tool Network, as facilitated by UN-Habitat, is an
alliance of international, regional and national partners working together
to “securing land and property rights for all” through the development of
pro-poor and gender responsive land tools and approaches within the
continuum of land rights framework. It supports the implementation of the
Voluntary Guidelines on the Responsible Governance of Tenure of Land,
Forests and Fisheries (VGGTs), the Framework and Guidelines for Land Policy
in Africa, Sustainable Development Goals (SDGs) and the New Urban Agenda.
Value, and its attribution to unregistered and/or informal land &
property, is a key component to sustainable land administration systems and
is a critical component of effective land acquisition, taxation and transfer
processes. Indeed, it can be argued that ‘value’, whether defined in purely
economic terms or in a wider context of social, environmental and cultural
value, is the key to establishing tenure security and identification of
legitimate ownership. ‘Value’ is directly linked to local and regional
revenue generation, functioning formalized land & property markets and is a
central enabling factor within land-based financing (as underlined within
the New Urban Agenda). However, this is a difficult area, with limited
professional capacity and knowledge, and a chronic lack of data and in many
cases cultural/social understanding. Several organisations, agencies and
NGOs (GLTN, RICS, FIG, UNFAO, Namati) have attempted to better understand
unregistered land valuation and informal markets through extensive research,
policy guides, international guidelines (VGGT) and due diligence standards
(ILMS & UNFAO – lawyers advising on land acquisition). This has resulted in
strong empirical evidence and potential governance but not in a practical,
fieldbased due diligence protocol for how to arrive at appropriate and
reasonable market ‘value’. This manual has a great opportunity to synthesize
previous outputs, bring closer collaboration between interested parties
through the formation of a working group, and help ‘value’ become more
effective and appropriate during the land formalization, acquisition,
transfer and taxation process. Main Outputs and Activities.
In close collaboration with UN-Habitat (regional and country offices),
Land and Global Land Tool Network Unit, government and provincial
authorities, and other land stakeholders, the Professional Cluster will be
undertaking the following key interventions and activities as follows: On
Consolidation of Processes, Experiences and Strategies:
To support the consolidation of existing processes, experiences,
lessons learned and strategies regarding the valuation of unregistered
land
To develop connectivity between high level guidelines (VGGT),
existing standards (RICS, IVSC), education (GLTN land professional
curriculum) and field based protocols/manual
To evolve professional debate and agreement on a more appropriate
form of ‘market value’ incorporating social, cultural and environmental
elements
To produce a robust, due diligence protocol and manual (including
basic checklists and sample format ) for use by land professionals,
surveyors and valuers
To encourage/enable the adoption of this protocol/manual by
partners, and by extension financial institutions, acquiring
authorities, land administration/valuation/rating/taxation departments
To develop collaboration with existing land data standards and
processes
To propose ‘open valuation data’ and data accessibility
recommendations
To mobilize international, national and local experts and partners
to enable consolidation and integration of strategies and inform land
policy and land administration reform processes Main Expected
Result: The production of a ‘due diligence protocol/standard’ and field
manual specifying the procedures required from land professionals, surveyors
and valuers to implement the GLTN ‘valuation of unregistered land’ policy
guide principles and conclusions.
