Rethinking Allocation Note

In April, 2011 I blog to the fact that Allocation Note is an introductory letter for land buyers. I must say, that is a historical meaning. The idea that allocation note is a mere letter introducing land buyers to the Asantehene or other relevant Paramount chief so that proper land documents would be prepared for them does not often go down well with most people who own land in Kumasi.

          In practice, it comes as a surprise. In recent times, most land buyers have a developed a different but casual understanding of the meaning and legal implication of allocation notes.They think that allocation note is as good as a registered lease document or any other valid land document. They think that land registration is a matter of choice, not a need. And they also think that by keeping allocation notes in their homes, they are doing the right thing to secure their ownership of land. This thinking forms the basis of new ideas that are been sowed to expand the meaning and legal implications of allocation notes. When this is idea is accepted by land administrators,  allocation note holders could actually walk to the Lands Commission and deposit copies of their allocation notes, whiles keeping the original and this may constitute land registration. 

           I must say that, even before this idea gathers enough support from land experts and public land administrators, some financial institutions have welcomed it. They now take allocation notes as valid land document to secure loans. And such institutions are reaping immense benefits.

            Looking at the high cost and the long time it takes to register land and procure a lease in Kumasi, accepting allocation note as a valid land document that may be registered can only be said to be ingenious. In my opinion expanding the meaning and legal implications of allocation note to include the ‘casual’ meaning than letting it remain a mere letter meant to introduce land buyers to the Asantehene is crucial in protecting right to land and creating wealth in the land market. Thousands of allocation notes are being given out by chiefs everyday. Consequently, almost every land owner have, knows or has heard of allocation note. But let us ask ourselves. How many of the millions of allocation notes issued by chiefs daily have successfully been converted into leases? Since 1943, when the first allocation note was issued, millions of such documents have  been given out to land owners. However, less than six thousand of such allocation notes till now have been or is being converted into leases.

             Clearly, the wheels of converting allocation notes into leases grind slowly. It takes too long. And the cost is too much. That is why the idea of expanding the meaning and legal implication of allocation note is clearly clever, to me. I don't know how you see it.