2. Lecture Objective
After completing this unit the students are
expected to
– Understand what real property formation mean
– Understand Causes of change of property
structure
– Describe how property is formed
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3. Property Formation
Is the creation of new real property units out of
land from pre-existing one or by the
amendment(modification) of existing units.
Property formation means both the formation and
re-formation of property units.
Property formation is a measure whereby
– The division into properties is changed
– Easements are formed, amended or cancelled, or
– A building or other construction belonging to a property
is transferred to another property.
4. Real property formation is done:-
– by investigation of the current situation
– legal examination of the suggested change
– meeting with landowner
– production of cadastral plans and other legal documents,
– decisions of the change in property structure,
– the amount of compensation etc., making a cadastral dossie
(also in digital format) and
– updating the public Real Property Register (including the
cadastral map)
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Property Formation
5. Property units are created by:
Real property formation method
– Subdivision
– Partition
– Amalgamation
– Re-allotment
6. Subdivision
By means of subdivision one can subdivide a certain area of land
from an existing property unit to form a new property unit.
It is also possible for an area to be subdivided from jointly owned land
or from an entire joint property unit.
The area of land thus parceled off from jointly owned land becomes a
property unit.
The portion of a property unit parceled off is called a subdivided lot.
What remains of the original property unit after the parceling is called the
residual property unit.
The residual property unit and lot together are called subdivided
parcels.
The whole of the original property unit with which subdivision begins is
called, in its undivided state, a subdivision unit.
7. Partition
When several persons jointly own a property unit with a
specified share each, i.e. have joint title in it, one or
more of them may request that his share be hived off
into a separate area of land, forming a new property
unit.
In this way the share in the jointly owned property unit
can be converted into a separate property unit in its own
right.
Always, when partition takes place, the whole of the
property unit affected is divided up into new property
units.
8. Partition
The parcels are usually termed “partition lots”.
These lots form new property units.
After the partition, the original property unit no
longer exists.
In order for a partition to take place, it does not
have to be desired by all the joint owners of a
property unit.
If one joint owner applies for cadastral procedure,
this is sufficient for the possibility to be considered
of carrying out a partition as applied for.
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9. Amalgamation
Entire property units can be amalgamated into a
new property unit.
Subdivided parcels can also be amalgamated.
In order for amalgamation of property units to be
possible, must have the same owner.
Property units belonging to different persons cannot
be amalgamated to form a single property unit.
The property units included in an amalgamation
cease to exist.
This means that all rights and obligations belonging
to the property unit will be transferred to the new
unit.
10. Re-allotment
Re-allotment means re-formation of existing
property units.
Re-allotment can mean the transfer of land from
one property unit to another.
Re-allotment can take place by agreement between
the owners of the property units affected.
In certain cases it can also take place coercively i.e.
against the wishes of a property owner
e.g. for the purpose of planning implementation such
as joint property unit
11. Cont-
Re-allotment can mean a variety of measures,
namely:
– Transfer of land from one property unit or joint property
unit to another property unit or joint property unit.
– Formation of a joint property unit
– Transfer of a share in a joint property unit from one
property unit to another
– Formation, amendment or cancellation of easements
– Transfer of buildings other construction belonging to
one property unit to another property unit
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14. Experience of Amhara Region
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1. Causes of change of property structure
– Infrastructure development – Such as road,
irrigation system, etc
– Divorce-Separation of family (wife and husband)
– Change of development plan
– Gift
– Land rent
– Land consolidation
15. Experience of Amhara Region
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3. Procedure /work flow of property formation
– A client applies to the Kebele Land Administration Office in
verbal.
– The KLAE hears the request and checks whether the
parcel can be subdivided, gives information to the client
about the fee and the procedure.
– The client fills the application form if he/she agrees
– The KLAE receives the application and records it in the
application journal
16. Experience of Amhara Region
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– Appointment is given about the date of property formation
measures to be taken place;
– Public display
– If no compliant is submitted, the property formation measure
would take place at the appointed date
– Sketch map will be prepared that show the situation before
and after the property measure
– Prepares minute and all the participants sign on it
17. Experience of Amhara Region
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– Cadastral decision is made by Kebele Land Administration
expert
– Receives the fee for the service,
– Updates changes in the registry book
– Copy the updated data from the registry book into green
book/ holding certificate
– Issue the green book for the client
18. Experience of Amhara Region
– For manual registration system, the KLAE sends the
changes to Woreda land registrar.
– Stores all documents in systematic way at kebele or
Woreda level
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19. Point of discussion
What are the conditions to be fulfilled for
property formation to be effected?
What should be considered when subdivision
is taken place?
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