Title Systems and Land Values
The Torrens (or registration) and the recording title systems apply different principles to resolve conflicting claims to land title. This paper develops a theoretical model of how expected title risk and transactions costs affect land value across the two systems and ultimately concludes that the Torrens system leads to higher property values, ceteris paribus. It also suggests that empirical studies of the title system--land value nexus need to control for self-selection effects in the data. We use the simultaneous existence of two alternative title systems in Cook County, Illinois, as a natural experiment for comparing land values under each system. The estimates indicate that the Torrens system increases land value relative to the recording system when controlling for self-selection effects. Copyright 2002 by the University of Chicago.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McMillen, Daniel P. & McDonald, John F., 1991. "Urban land value functions with endogenous zoning," Journal of Urban Economics, Elsevier, vol. 29(1), pages 14-27, January.
- Baker, Matthew, et al, 2002. "Optimal Title Search," The Journal of Legal Studies, University of Chicago Press, vol. 31(1), pages 139-158, January.