1. UN ECE R EAL E STATE M ARKET A DVISORY G ROUP (REM)Forum UNECE REM Policy Framework for Sustainable Real Estate Markets Policy Principles for Improved Land Administration David Egiashvili, Ph.D UN ECE REM World Bank, Moscow January 27, 2012

2. The application of the following Principles should be based on widely accepted key concepts 1.Sustainable development  as development that “meets the needs of the present without compromising the ability of future generations to meet their own needs”; 2.Good governance  which should prevent decision-making based on self-interest and favor decision-making to the benefit of common good; 3.Transparency  the degree of clarity and openness through which decisions are taken; 4.Accountability  the extent to which political actors are responsible to society for their actions; 5.Fairness  the degree to which rules are equally applied to everybody; 6.Efficiency  the extent to which limited human and financial resources are applied without waste, delay or corruption or without compromising the well-being of future generations. UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D Professional Consulting Group

3. REM Policy Framework for Sustainable Real Estate Markets Consist by 10 Policy principles: 1.Integrated Legal Framework; 2.Efficient Land Registry and Cadastre; 3.Efficiency of Services; 4.Bases for Developed Real Estate Markets; 5.Good Governance; 6.Sustainable Financing; 7.Transparency and Advanced Financial Products; 8.Property Valuation; 9.Social Housing; 10.Training and Capacity Building UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D Professional Consulting Group

4. The identification and protection or property rights is based on the availability of secure data and information that may be exceptionable to third parties; The availability of an efficient asset cataloguing and classification system and the possible access to information on title; Secure private landownership and the security of tenure are integral part of good governance and are the key condition for functioning real estate markets; Regularly updated public registers and cadastral systems are needed, to minimize risks and to provide legitimacy to the lawful possession of an asset UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D REM Policy Framework for Sustainable Real Estate Markets Professional Consulting Group

5. UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D  Secure registration and recognition of property rights subject to legal registration;  Establishment of customer- oriented, objective, transparent and secure system for registration of rights;  Ensuring accessibility of Public Registry information Vision Directions of the Reform  Institutional Reform  Legislative Reform  Administrative Reform  Technological Reform Professional Consulting Group

6. Policy Principles for Improved Land Administration Institution UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D Main guiding principles Land administration should be separate from land management function  Successful Registration Institution should operate as unified entity and be self financed;  Institution should be independent in internal decision making (same refers to registrars);  Number functions should be delegated to private sector Professional Consulting Group

7. Land administration should be separate from land management function UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D  Registration Institution should be separated from land management functions;  It is essential to differentiate between land administration (cadastre and registration) and land management functions as land use monitoring urban/agricultural land use planning land sale Otherwise it might lead to conflict of interest where registration Institution loses its role of independent arbitrator Principle 1 Professional Consulting Group

8. Registration Institution should operate as unified entity and be self financed All types of property should be registered in one institution  Agriculture land;  Non agriculture (urban Land);  Buildings; All property regardless of ownership should be registered in one institution  State or municipal property;  Private property;  Public property; All types of rights and restrictions should be registered in one institution  Ownership, lease;  Mortgage;  Servitude; UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D Principle 2 Professional Consulting Group

9.  Self financing allows the Registration Institution to introduce efficient development strategy;  Increases employee motivation;  Self financed should be the Registry itself and not regional registration offices;  The Registry should have a clear strategy in order to avoid accumulation of surplus funds. UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D Principle 2 Registry should operate as unified entity and be self financed Professional Consulting Group

10. Institution should be independent in internal decision making (same refers to registrars)  The Institution should operate as independent, unified body which is free in internal decision making;  Authority of supervisory body should be limited by: budget approval; and Appointment of Director/Head of the institution  Appointment of local registrars by supervisory body or local government is improper UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D Principle 3 Professional Consulting Group

11. UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D Principle 4 Number of functions should be delegated to private sector  Private sector should play an important role in providing cadastre and registration services.  This is crucially important for providing property surveying services for land parcels; and for buildings;  Private sector can effectively get involved in legal consulting;  Registry can authorize private companies or individuals who can represent the client in relations with the Registry  The Registry should ensure free and competitive environment in order to avoid creation of monopolies Professional Consulting Group

12. Thank you for your attention David Egiashvili E-mail: david.egiashvili@pcgroup.ge UN ECE REM Forum, Moscow, World Bank Country office, 27 January, 2012, David Egiashvili, Ph.D Professional Consulting Group