Know differences in land certificates

AM compelled to write this piece as I am finding many people I know making the mistake of entering into land purchase transactions without appreciating the difference between a State lease and a certificate of title.
While others may say this is not the correct forum for this discussion, I beg to differ.
There are other places that such advice is available, but you will not have access to them without an entry fee.
A State lease is the most secured land acquisition mode in our country.
The main similarity between a State lease and a certificate of title is that both have a registered survey, which is registered with the surveyor general’s office at the Lands and Physical Planning Department and a CAT No would be issued if you are shown a registered survey go a step further and request to see a copy of the title.
While both are registered with the register of titles at the department, the process of registration is different.
I’ll say the State lease is less controversial.
However, the certificate of title is issued after the Land Titles Commission hearing is done and the commission makes a determination after receiving evidence and arguments from contending landowner groups.
The process also involves the incorporated land groups (ILGs), which made up of the clans and not individuals, so if you are receiving the certificate of title from an individual, request for the ILG certification, his relation to the ILG and the Land Titles Commission’s determination that led to his certificate of title being registered.
Do your due diligence.
This is strongly recommended.
The following are some of the main differences between the state lease and certificate of title.
With a State lease, you can lease the land for 99 years before applying for a state lease renewal with the State, who owns the land.
In a certificate of title, the lease is for 25 years (under the current arrangements) and the land reverts back to the ILG after 25 years.
It reverts to the ILG as customary owner of the land.
Commercial banks and financial institutions will not give you a mortgage or any other loan against a certificate of title.
This is because the ownership of land under the certificate of title is customary and customary ownership is not transferable.
That means the banks can’t recover the land in the case of a default and sell or transfer the land because they can’t do that under the existing land laws of Papua New Guinea.
Remember, the certificate of title is customary land.
The difference it has to other customary land is that it’s registered and the others aren’t.
Even if it’s registered, remember, the law stipulates that customary land cannot be sold.
Please seek competent legal advice and do your due diligence when purchasing land.
This advice is for your guidance and food for thought and should not be used as the basis of your decision making.

L B Paem