Susana Lastarria-Cornhiel, Grenville Barnes (1995):
Assessment of the Praedial Property Registration System in Peru

I. Introduction

The Praedial Property Registration system (known in Peru as the Registro Predial) has been set up as an alternative system to traditional registries for the formalization of immovable property. Much of the earlier design and pilot work for the Praedial Property Registration system was done by the Peruvian private organization, Instituto Libertad y Democracia (ILD). They claim that in Peru they "have formalized over 150,000 properties much more quickly, and at dramatically less costs, than traditional titling and registration programs" in three-and-a-half years during the early 1990s (Path to Property, nd: 9). This property formalization system has been trademarked as PROFORM. It is being offered to other countries as a quick and inexpensive way to convert informal property in the hands of a large proportion of the population into legally recognized private property and as a source of capital (through the mortgaging of this property) for the grassroots development of that country.

This study assesses the functioning of this system in Peru and its replicability in other countries. There is no easily accessible documentation on how this property formalization program has actually functioned in Peru, and therefore it is difficult for development agencies to determine its applicability for specific situations. This assessment of the Registro Predial [FN 1] in Peru is an attempt to document the functioning of an important component of this formalization program.

This study examines different aspects of property registration and related institutions and processes. The scope of this assessment, therefore, includes not only the Registro Predial registration system, but also the titling process (prior to registration) and the credit worthiness and credit opportunities for titled and registered property in both urban and rural areas in Lima [FN 2] that fall under the jurisdiction of the Registro Predial. The study also examines the concepts and legal framework of titling, registration, ownership rights, and possession rights within the Peruvian context.

The assessment methodology followed by the two-person team [FN 3] consisted of the documentation of the above aspects through interviews with responsible persons in government and non-government institutions that participate in the registration process, as well as in pre- and post-registration activities. This included field visits in both urban and rural areas to interview institution personnel, community leaders, and property owners. Prior to traveling to Peru, the team also collected and studied available background material, including reports and publications by the ILD. Unfortunately, only one of the ILD staff was available to meet with the team for a very limited time to discuss the PROFORM system and the activities of the property formalization.

We would like to thank a number of persons in Peru who assisted us greatly during our mission, especially the director and staff of the Registro Predial in Lima. Dr. Mario Palacios Luna and his staff were generous with their time and patient in showing us how their registration system functions. They were also very helpful in facilitating contacts with other institutions in order to broaden our picture of the titling and registration process in Peru. Without their cordial and open cooperation, our study would not have been as complete and would have been much more difficult to undertake.