The Choice of Titling System in Land
39 Pages Posted: 7 Nov 2002 Last revised: 30 Oct 2008
This paper analyzes the choice of the socially optimal titling system assuming rational individual choices about recording, assurance and registration decisions. It focuses on the enforcement of property rights on land under private titling and the two existing public titling systems, recording and registration. When the reduction in the expected costs of forfeiture balances the higher cost of initial registration, a registration system is more efficient than a recording system. Implications for title assurance, land improvements and transactions are also considered.
Keywords: land transfer, registration, recording, property rights, title assurance, insurance, adverse selection
JEL Classification: K11, K12, L85
Suggested Citation: Suggested Citation