|- Opinion from the village, fraction of<br>neighborhood or Municipal Council;<br>- In case of bare land >1000 m<sup>2</sup>, approval of<br>State representatives required;<br>- Decision subject to signature by the mayor who<br>will issue notification of allocation and seek<br>payment of the fees;<br>- Registration of the title in the register of CUHs<br>or CRUHs. Specifications approved by<br>Municipal Council|- Minister for local<br>authorities: 1-5 ha<br>- Council of Ministers >5<br>ha<br>- Specialized section,<br>_Antenne_DRDC in the<br>commune||
|---|---|---|
|Stage 3.Application for TF:<br>- Condition: development on terms imposed by<br>each_commune_or threat to take back land;<br>- Striking out of development clause;<br>- Application for TF to land registry office in<br>place where the building is located;<br>- Deposit of the original of the copy CUH or<br>CRUH which will be cancelled|- Mayor's office:<br>Assessment of<br>development<br>- Ordinary section of the<br>_Antenne_DRDC|- Registration fees (15%)|

# **Annex 3.4. Weakness of the housing finance system**

According to banking regulations, only property titles can be accepted as security for loans, but according to the law of February 12, 2002, a precarious title transferred by a notarial deed can also be accepted as collateral provided that the notary commits to transform it into a property title. In practice, obtaining the TF may prove impossible and the bank will lose out in the event of a default.

There are many cases of fraud concerning titles pledged to obtain a loan. Borrowers may obtain over-valued fictitious certificates from so-called expert assessors; in this case the Bank is at risk of never recouping the amount of the loan in case of a default. In addition, it is difficult to establish the value of mortgaged land correctly. Assessments made by State-approved property experts are not reliable. It is also difficult for a bank to verify that those who request loans truly own the land in the absence of a land information system and given the unreliability of the _Livre foncier_ . Loans may also be requested for properties that will never be built.

In addition, banks lend at a high interest rate (between 10 and 12%), for an average term of mortgage loan of 12-15 years, which further impedes the development of the formal housing sector.

_Source: Interview with managers of the Malian mortgage guarantee fund (September 2011)_

**Annex 4.1. Documents used for transactions (whether authorized or not)**

|**Type of legal or tolerated sale**|**Documents that can be used**|
|---|---|
|Purchase of customary land without subdivision|_Attestation de vente authentifiée_(deed of sale between buyer<br>and seller with signatures authenticated by the mayor's office).<br>Further transformation into precarious title and then property<br>title possible|
|Purchase of a plot following subdivision of a_concession_<br>_rurale_(administrative documents:_bulletins_)|_Attestation de vente_ _authentifiée_and transfer of_bulletin_<br>(bearing no name). Further transformation into precarious title<br>(CRUH) and then TF possible|
|Purchase of a plot with an administrative document (_lettre de_<br>_notification_or_lettre d’attribution_)|Sale by the beneficiary of the administrative document when<br>he/she does not need it, wants money immediately or cannot<br>pay the local development taxes. Common practice. Further<br>transformation into precarious title (CUH or CRUH) and then<br>TFpossible|

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