Privatization of the Land Titles Office

[Travis Munroe]

With permission from the author:

Privatization of the Land Titles Office

By Peter G. Robinson - NW Calgary Law 04-March-2014

The Provincial Government has been reviewing over 800 programs and services in an effort to see which programs should be left alone, improved, discontinued or combined with other programs. Included is the possibility of privatizing our Land Titles Office (LTO), as Manitoba and Ontario have done. The Progressive Conservative Association of Alberta (PCAA) defeated a resolution in November 2013 to keep the system as is.



Alberta beginning discussions to privatize land titles

http://www.edmontonsun.com/2013/11/2...ze-land-titles



The privatization of the LTO is opposed by a number of stakeholders, including the Real Estate Council of Alberta (RECA), AUPE and the Law Society of Alberta:



1. RECA’s position as indicated in their August 26, 2013 report is that “neither outsourcing nor privatization is in the public interest”, and the existing Land Titles Registry System is “the right program and service delivered in the right way to achieve the results that Albertans expect be maintained.”


For further details, please read RECA’s report in its entirety:



A Report from the Real Estate Council of Alberta with Respect to the Government of Alberta’s Review of the Alberta Land Titles Registry System In its Results-Based Budgeting Process

http://www.reca.ca/consumers/content...landtitles.ca/



2. The Law Society of Alberta was invited by the Minister to provide a report, and concluded on August 29, 2013 that “the best model for an Alberta Land Titles System remains a government owned and operated model”. The rationale for this position included the following:


> The current system is one of the best in the world

> LTO generates $55M per year in net revenues

> Updating the system can be paid for from current net revenue

> Our fees are the least expensive in Canada

> We will encounter unanticipated changes in a revised system

> Albertans rely on the current system to ensure and protect ownership

> The Government should not grant a monopoly to a private enterprise

> The government guarantee of title in our Torrens system, would be less reliable through a private operator



Our Land Titles system is in place to protect the real property rights of Albertans. I support the conclusion of the Law Society of Alberta in maintaining the current model.

[GP_Matt]

I really wish Ken Allred had run for one more term.
He was a sitting MLA in the last term who had broad cross party support and his opinion on Land Titles reform would have carried a lot of weight.

To put costs into perspective, Land Titles stores legal survey plans and charges $2 per plan to access them.
There is a similar registry for public lands plans that was privatized years ago which holds all the plans on crown land and they charge $13 a plan.

A telling study to me would be to look at Ontario and monitor whether or not title insurance is on the rise now that the system is private. I would hate to follow the States towards a system where problems with the system are discovered and solved through law suits.

[automaton 3]

ALTA needs to be updated. It was apparently a Cadillac back in the 80's, but is really showing its age.

Given the importance of the integrity of the LTO system and the healthy revenue that it creates, it should be a no-brainer for the government to invest in the updates.

[GGG]

In terms of types of buisnesses I have a heirarchy

Private - lots of competition -- Best Option
Government -- No competition -- Not ideal but if no way to create competition it is better than the alternative.
Government lots of competion -- Not ideal - Privatize to allow free market to drive down price
Private - No competition - Worst of all options. Leads to high prices and poor serivce. Only profit incentive exists with no requirement to deliver good service to maintain customer base.

In this case it will always be 1 private company running it we would be better off with the government running it because at least there is a desire to make the public happy rather than just profit motive. Privatization only works if there will be competition. If not the government just handcuffs itself when the future contracts come up as there is siginificant cost in switching from the status quo company.