Land law structures the land tenure systems of the countries in which the World Bank works, and constitutes an important topic in the dialogue with Bank client countries on sustainable development. It creates property rights systems for individuals, groups and the state, which in turn create incentives to conserve and produce. It sets out the circumstances in which and processes by which rights in land can be transferred, permanently or temporarily, or used to secure loans. It also embodies some limitations imposed by the state on those rights, for instance zoning rules that limit land use, or rules prohibiting transfers of land to foreigners. The rights may be full private ownership, or use rights, or leaseholds, or customary rights. Land law also creates the legal basis for institutions that administer land, and sets out the rules for system such as land titling and registration, which facilitate the smooth operation of property rights systems.
The task of providing an adequate legal environment for land use is complicated in many developing countries by the existence of parallel and often overlapping formal and informal systems of land rules. The informal systems may be deeply grounded culturally, as with customary land tenure systems, or relatively recent initiatives in self-governance by communities when the state has failed to provide effective rules governing land use. These systems may have ambits clearly defined in law, or there may be overlaps between them, or national law may accord the customary system no legal recognition. In these cases there may be struggles for power over resources, with each side attempting to take advantage of its law.
Most developing countries find themselves in the midst of profound transitions in this area. Some countries are still working with colonial era statutes, which require reconsideration and updating. These laws were framed almost exclusively with land's productive function and individual producers in mind, and they often envisaged development scenarios that have not played out as expected. With the growing awareness of environmental problems, there are new conservation values being put forward for factoring into these systems. In other countries, the state appropriated and attempted direct management of most land, but now, in light of failures in state land management, are rethinking the role of private property rights and markets and redefining the roles of the state and local communities. This is the position in "countries in transition". This is an era of widespread land law reform.
The various issues encircling land are: -
Land Contracts
Land transactions, such as buying a house, are governed by state contract law and a variety of federal laws, such as the Federal Fair Housing Act.
Mortgages
A mortgage involves the transfer of an interest in land as security for a loan or other obligation. Mortgages are mainly governed by state statutory and common law.
Rental Law
Landlord–tenant law governs the rental of commercial and residential property and is composed primarily of state statutory and common law.
Zoning Law
Zoning and land use laws regulate how land is developed and used, including divisions into areas for specific uses such as commercial, residential or industrial.