Indigenous Peoples and Real Estate Valuation

Transcription

1 Indigenous Peopes and Rea Estate Vauation

2 RESEARCH ISSUES IN REAL ESTATE Sponsored by the AMERICAN REAL ESTATE SOCIETY Voume I APPRAISAL, MARKET ANALYSIS, AND PUBLIC POLICY IN REAL ESTATE edited by: James R. DeLise and J. Sa-Aadu Voume II ALTERNATIVE IDEAS IN REAL ESTATE INVESTMENT edited by: Arthur L. Schwartz, Jr. and Stephen D. Kappin Voume III MEGATRENDS IN RETAIL REAL ESTATE edited by: John D. Benjamin Voume IV SENIORS HOUSING edited by: Michae A. Anikeef and Genn R. Mueer Voume V ETHICS IN REAL ESTATE edited by: Stephen E. Rouac Voume VI ESSAYS IN HONOR OF JAMES A. GRAASKAMP: TEN YEARS AFTER edited by: James R. DeLise and Eaine M. Worzaa Voume VII REAL ESTATE EDUCATION THROUGHOUT THE WORLD: PAST, PRESENT AND FUTURE edited by: Kar-Werner Schute Voume VIII REAL ESTATE VALUATION THEORY edited by: Ko Wang and Marvin L. Woverton Voume IX ESSAYS IN HONOR OF WILLIAM N. KINNARD, JR. edited by: C. F. Sirmans and Eaine M. Worzaa

3 Indigenous Peopes and Rea Estate Vauation edited by Robert A. Simons Ceveand State University, USA Rache Mamgren Ceveand State University, USA Garrick Sma University of Technoogy, Austraia 13

4 Editors Robert A. Simons Ceveand State University Levin Coege of Urban Affairs Ceveand, OH Rache Mamgren c/o Robert A. Simons Ceveand State University Levin Coege of Urban Affairs Ceveand, OH Garrick Sma University of Technoogy, Sydney Schoo of the Buit Environment Sydney Austraia ISBN: e-isbn: DOI: / Library of Congress Contro Number: # 2008 Springer ScienceþBusiness Media, LLC A rights reserved. This work may not be transated or copied in whoe or in part without the written permission of the pubisher (Springer ScienceþBusiness Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or schoary anaysis. Use in connection with any form of information storage and retrieva, eectronic adaptation, computer software, or by simiar or dissimiar methodoogy now known or hereafter deveoped is forbidden. The use in this pubication of trade names, trademarks, service marks and simiar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper springer.com

5 AMERICAN REAL ESTATE SOCIETY OFFICERS President*...Marc A. Louargand, Satash Partners, LLC President Eect*...Mauricio Rodriguez, Texas Christian University VP & Program Chair*...Steven P. Laposa, PricewaterhouseCoopers Vice Program Chair...John Wiiams, Morehouse Coege Executive Director*...Stephen A. Pyhrr, Kennedy Wison Secretary*...Thomas M. Springer, Cemson University Treasurer*...Kar L. Guntermann, Arizona State University Director of Finance...Joseph B. Lipscomb, Texas Christian University Director of Deveopment*...James R. Webb, Ceveand State University Director of Pubications...Wiiam G. Hardin III, Forida Internationa University Meeting Panner*...Arthur L. Schwartz, Jr., University of South Forida-Emeritus Director of Strategy*...Stephen E. Rouac, Rouac Goba Paces and University of Uster Director of Industry Liaison...Geoffrey Dohrmann, Institutiona Rea Estate, Inc. Pariamentarian...Joseph D. Abert, James Madison University Ombudsman...Larry E. Wofford, C&L Systems Michae A. Anikeeff ( ) Johns Hopkins University Susanne Cannon ( ) DePau University Lijian Chen ( ) UBS Reaty Investors Terry R. Dunkin ( ) Appraisa Institute Andrew C. Forance ( ) CoStar Group Wiiam G. Hardin-III ( ) Forida Internationa University David Harrison ( ) Texas Tech University Ronad W. Kaiser ( ) Baiard, Inc. Phiip T. Kobe ( ) University of Memphis Youguo Liang* ( ) Prudentia Rea Estate Investors BOARD OF DIRECTORS Christopher A. Manning* ( ) Loyoa Marymount University Norman G. Mier* ( ) University of San Diego Stephen A. Pyhrr* ( ) Kennedy Wison Arthur L. Schwartz, Jr.* ( ) University of So. Forida-Emeritus Robert A. Simons ( ) Ceveand State University Mark A. Sunderman ( ) University of Wyoming Grant I. Thra ( ) University of Forida Zhong Y. Tong ( ) Repubic Mortgage Insurance Co. Richard Wincott ( ) PricewaterhouseCoopers Eaine M. Worzaa* ( ) Cemson University IRES BOARD OF REPRESENTATIVES Mauricio Rodriguez ( ) - Texas Christian University Wiard McIntosh ( ) - University of Cincinnati Karen M. Giber ( ) - Georgia State University * Past President

6 AMERICAN REAL ESTATE SOCIETY APPOINTED POSITIONS Associate Executive Directors Roy T. Back, Georgia State University Arthur L. Schwartz, Jr.,* University of South Forida-Emeritus Steven C. Bourassa, University of Louisvie Editor, JRER Co-Editors, JREPM Editor, JREL Co-Editors, JREPE Executive Editor, JHR Managing Editor, JHR Newsetter Editor ARES Webmaster Doctora Seminar Director Director of Internationa Liaison Director of Pacement President, Apha Sigma Gamma (Internationa Honorary Society) Eections Officer Historian Ko Wang, Caifornia State University-Fuerton Randy I. Anderson, The Anderson Group Genn R. Mueer,* University of Denver/and Dividend Capita Research Richard Peiser, Harvard University John F. McDonad, University of Iinois-Chicago Wiiam G. Hardin-III, Forida Internationa University Pau Gaimore, Georgia State University Danie T. Winker, University of North Caroina-Greensboro Leonard V. Zumpano, University of Aabama H. Sheton Weeks, Forida Guf Coast University Susan L. Neson, University of North Dakota Ko Wang, Caifornia State University-Fuerton Jack Harris, Texas A&M University-Retired Graeme Newe, University of Western Sydney Robert A. Simons, Ceveand State University Forrest E. Huffman, Tempe University John S. Baen, University of North Texas Joseph D. Abert,* James Madison University PROFESSIONAL POSITION Manager of Member Services Diane Quares - Cemson University * Past President

7 AMERICAN REAL ESTATE SOCIETY COMMITTEES PUBLICATION COMMITTEE Wiiam G. Hardin-III, Chair Emai: Phone: Fax: RESEARCH COMMITTEE Christopher A. Manning, Chair Emai: Phone: Fax: EDUCATION COMMITTEE Susanne Cannon, Chair Emai: Phone: Fax: PROGRAM COMMITTEE (ANNUAL MEETING) Steven Laposa, Chair Emai: Phone: Fax: John Wiiams, Vice-Chair Emai: Phone: Fax: MEETING COMMITTEE Arthur L. Schwartz, Jr., Chair Emai: Phone: STRATEGIC PLANNING COMMITTEE Stephen E. Rouac, Chair Emai: Phone: Fax: ACADEMIC MEMBERSHIP COMMITTEE Grant I. Thra, Chair Emai: Phone: Fax: Chares C. Tu, Vice Chair Emai: Phone: Fax: CAREER DEVELOPMENT & PLACEMENT Robert Simons, Chair Emai: Emai: Phone: Fax: INDUSTRY MEMBERSHIP COMMITTEE James R. Webb, Co-Chair Emai Phone: Fax: Geoffrey Dohrmann, Co-Chair Emai: Phone: Fax: MANUSCRIPT PRIZE COMMITTEE Norman G. Mier, Chair Emai: Phone: Fax: RECOGNITION AWARDS COMMITTEE Norman G. Mier, Chair Emai: Phone: Fax: Mauricio Rodriguez, Vice-Chair Emai: Phone: Fax: FINANCE COMMITTEE Joseph B. Lipscomb, Chair Emai: Phone: Fax: Kar Guntermann, Vice-Chair Emai: Phone: Fax: TECHNOLOGY COMMITTEE Mark A. Sunderman, Chair Emai: Phone: Fax: Heen Nei, Vice-Chair Emai: Phone: Fax: GOVERNANCE COMMITTEE Joe Abert, Chair Emai: Phone: Fax: Phiip Kobe, Vice-Chair Emai: Phone: Fax:

8 AMERICAN REAL ESTATE SOCIETY Past, Present and Future Presidents 1985 Joseph D. Abert James R. Webb Thomas Pearson Chares H. Wurtzebach Larry E. Wofford Theron R. Neson Jerome Dasso Terrence M. Cauretie Donad R. Epey Arthur L. Schwartz, Jr Steven D. Kappin Stephen E. Rouac Wiard McIntosh Genn R. Mueer Kar L. Guntermann G. Donad Jud James R. DeLise Joseph B. Lipscomb Christopher A. Manning Youguo Liang Stephen A. Pyhrr Eaine M. Worzaa Norman G. Mier Marc A. Louargand Mauricio Rodriguez Steven Laposa John Wiiams NOTE: Term of office is Juy 1st thru June 30th of each year.

9 AMERICAN REAL ESTATE SOCIETY 2008 PRESIDENT S COUNCIL Appraisa Institute CNL Rea Estate Advisors Cornerstone Rea Estate Advisers, Inc. CoStar Group ING Rea Estate Institutiona Rea Estate, Inc. LaSae Investment Management PricewaterhouseCoopers Prudentia Rea Estate Investors RICS Americas RREEF UBS REGENTS Crescent Resources, LLC Edward St. John Department of Rea Estate at Johns Hopkins University Freddie Mac Nationa Association of Rea Estate Investment Trusts (NAREIT) Repubic Mortgage Insurance Co. Rouac Goba Paces University of Cincinnati Coege of Business Zickin Schoo of Business-Baruch Coege SPONSORS Baiard, Inc. Backrock Financia Management BRE Properties Burnham-Moores Center for Rea Estate-University of San Diego CCIM Institute Cengage Learning Center for Rea Estate Deveopment-Cemson University Counseors of Rea Estate (CRE) Dearborn Rea Estate Education GE Rea Estate GIC Rea Estate Pte. Ltd. Integrated Financia Engineering (IFE) Internationa Counci of Shopping Centers (ICSC) Jerome Bain Rea Estate Institute at Forida Internationa University Kennedy Wison McGraw-Hi/Irwin Mortgage Banker s Association (MBA) Nationa Association of Industria and Office Properties (NAIOP) Nationa Association of REALTORS (NAR) Nationa Investment Center for the Seniors Housing & Care Industry (NIC) Nationa Muti Housing Counci (NMHC) Rea Capita Anaytics Rea Estate Center at DePau University Research Institute for Housing America Steven L. Newman Rea Estate Institute The Anderson Group The Dorchester Group The Rea Estate Center at DePau University Torto Wheaton Research Urban Land Institute (ULI)

10 AMERICAN REAL ESTATE SOCIETY FOUNDATION The ARES Foundation was created by the ARES Board of Directors in The intent was to create an entity capabe of deveoping an endowment and using that endowment and the income it produces to support ARES ong-term interests. At the most genera eve, this means furthering the interests of rea estate education and research. The foundation provides an appropriatey fexibe vehice for supporting various activities important to ARES members, activities that ARES may not be abe to provide on its own. The Foundation s endowment aso provides a degree of stabiity to ARES ong-term future not possibe within the constructs of ARES itsef. The ARES Foundation is an entity distinct from ARES with its own corporate charter, bank accounts, and investments. Because stabiity, continuity, and a working knowedge of ARES are of critica importance in the governance of the Foundation, the ARES Board of Directors in 1986 provided that past presidents of ARES serve tweve-year terms on the Foundation Board. A predetermined schedue was estabished so that each ARES past president serves as vicepresident and president of the Foundation. Within the Foundation Board, the important threeperson investment committee is chaired by Arthur L. Schwartz, Jr., G. Donad Jud serves as treasurer of the Foundation, and James R. Webb serves as Executive Director. The Foundation Board hods its annua meeting in conjunction with the ARES meeting each year. When the ARES Board created the Foundation, it aso created the ARES Feows program to fund it. Revenue from the stricty vountary Feows program goes to the ARES Foundation. A goa from the outset has been the deveopment of an endowment sufficient to assure an adequate eve of support for ARES ong-term activities. Accordingy, the Foundation Board has sought to baance current expenditures with endowment growth and has graduay increased its support of ARES programs. Programs supported by the Foundation have focused on assisting individua participation in ARES activities. The Foundation has funded the Doctora Dissertation Seminar by defraying costs for graduate students to attend the seminar and ARES annua meeting and hoding a dinner in their honor the evening of the seminar. The Foundation has aso funded the participation of rea estate schoars from Africa, Latin America and Eastern Europe at ARES annua meetings. Invoving these schoars has enhanced the meeting experience for a ARES members. In the spirit of joining academics and practicing professionas, the Foundation funds a $1,000 manuscript prize for the best paper presented by a practicing professiona at each ARES annua meeting and a manuscript prize for the European Rea Estate Society annua meeting, the Asian Rea Estate Society annua meeting and the Pacific Rim Rea Estate Society annua meeting. The Foundation wi continue to broaden and deepen its support of ARES ong-term goas. Likewise, the Board wi continue to ook for better ways for the Foundation to achieve its goas and reaize its potentia. None of this woud be possibe without the support of the ARES Feows and other Foundation contributors. Each ARES Feow currenty contributes $250 per year and each ARES Distinguished Feow contributes $500 per year over and above ARES dues. The vision and generosity of these individuas and organizations shoud be appreciated by a ARES members. Won t you join today and make a difference?

11 Mark L. Levine University of Denver AMERICAN REAL ESTATE SOCIETY FOUNDATION ENDOWED DOCTORAL SPONSORSHIPS Yougou, Lucy, Michee & Mia Liang Genn R. & Jan H. Mueer Theron R. & Susan L. Neson Arthur L. Schwartz Heen Beckett Schwartz Robert A. Simons Ceveand State University 2008 DISTINGUISHED FELLOWS Marc Louargand Satash Partners LLC Christopher A. Manning Loyoa Marymount University Ko Wang Caifornia State University-Fuerton Stephen A. Pyhrr Kennedy Wison James R. Webb Ceveand State University John E. Wiiams Morehouse Coege Chares H. Wurtzebach Henderson Goba Investors Joseph D. Abert James Madison University Marcus T. Aen Forida Atantic University Randy I. Anderson The Anderson Group Michae A. Anikeeff Johns Hopkins University John S. Baen University of North Texas Edward A. Barya East Tennessee State University John D. Benjamin American University Donad H. Beich Caifornia State University-Northridge Amy Bogdon Fannie Mae Foundation Wado L. Born Eastern Iinois University Steven C. Bourassa University of Louisvie M. Gordon Brown Eindhoven University of Technoogy Roger J. Brown IMOJIM Investments Nichoas G. Buss Invesco Rea Estate Todd A. Canter LaSae Investment Management James Carr Fannie Mae Foundation Chares Carter Forida Atantic University Lijian Chen UBS Reaty Investors, LLC Ping Cheng Forida Atantic University Marvin F. Christensen RREEF Joseph W. Coeman Wright State University 2008 FELLOWS Genn E. Crein Washington State University Chares G. Dannis Crosson Dannis, Inc. James R. DeLise University of Washington Geoffrey Dohrmann Institutiona Rea Estate, Inc. Mark Dotzour Texas A&M University David H. Downs Virginia Commonweath University Donad R. Epey University of South Aabama J. Terrence Farris Cemson University Louis A. Gauppo University of San Diego Karen M. Giber Georgia State University John L. Gascock University of Cambridge Pau R. Goebe Texas Tech University Jacques Gordon LaSae Investment Management Hany Guirguis Manhattan Coege Kar L. Guntermann Arizona State University Otis E. Hackett Otis E. Hackett & Associates Thomas W. Hamiton University of St. Thomas Wiiam G. Hardin III Forida Internationa University Michae J. Highfied Mississippi State University Aart C. Hordijk ROZ VASTGOEDINDEX Thomas O. Jackson Texas A&M University

12 AMERICAN REAL ESTATE SOCIETY FOUNDATION 2008 FELLOWS (continued) Ken H. Johnson Forida Internationa University Pau L. Jones Pyramid Reaty Group, Inc. G. Donad Jud University of North Caroina-Greensboro Ronad W. Kaiser Baiard, Inc. Steven D. Kappin University of South Forida-Emeritus John Kipatrick Greenfied Advisors, LLC Aex Katskin Forsgate Industria Partners Phiip T. Kobe University of Memphis S. Nea Krieger Archon Group Steven P. Laposa PricewaterhouseCoopers Frederick Liebich Backrock Financia Management Joseph B. Lipscomb Texas Christian University Emi Maizia University of North Caroina-Chape Hi Asieh Mansour RREEF John F. McDonad University of Iinois-Chicago Wiard McIntosh University of Cincinnati Isaac Megbougbe Johns Hopkins University Ivan J. Miestchovich, Jr. University of New Oreans Norman G. Mier University of San Diego F. C. Nei Myer Ceveand State University Graeme Newe University of Western Sydney Joseph L. Pagiari, Jr. University of Chicago Edward F. Pierzak Henderson Goba Investors Rudy R. Robinson, III Austin Vauation Consutants Mauricio Rodriguez Texas Christian University Stephen E. Rouac Rouac Goba Paces LLC & University of Uster Ronad C. Rutherford University of Texas-San Antonio Sean P. Sater Midde Tennessee State University Kevin Scherer Backrock Financia Management Kar-Werner Schute University of Regensburg David Scribner, Jr. Scribner & Partners, Inc. James D. Shiing DePau University Lawrence Souza Chares Schwab Investment Management Ronad Spahr University of Memphis Thomas M. Springer Cemson University Simon A. Stevenson City University-London Mark A. Sunderman University of Wyoming Robert W. Tayor Virginia Commonweath University Stephen F. Thode Lehigh University Grant I. Thra University of Forida Zhong Y. Tong Repubic Mortgage Insurance Co. Raymond G. Torto Torto Wheaton Research Raymond Y.C. Tse Hong Kong Institute of Rea Estate James R. Vaent Broadway Partners H. Sheton Weeks Forida Guf Coast University Margot B. Weinstein MW Leadership Consutants, LLC Richard Wincott PricewaterhouseCoopers Danie T. Winker University of North Caroina-Greensboro Larry E. Wofford C&L Systems Eaine M. Worzaa Cemson University Michae S. Young Consutant Leonard V. Zumpano University of Aabama

13 Editor s Foreword Dear Reader, I am peased to introduce you to the ARES Research Monograph on Indigenous Peopes and Rea Estate Vauation. This idea was deveoped by John Baen and others severa years ago. I originay got invoved in the project as a contributing author, when I was researching indigenous property practices, whie on a Fubright Schoarship at Wits University in Johannesburg, South Africa, in When I returned to the next ARES meeting, Jim Webb asked me to take over the ead roe in getting this project to press, and I eagery agreed. The reason I was so interested in this comparative work was because there is a rea need for rea estate research that can hep schoars and students in deveoping countries bridge the gap between the avaiabe rea estate and property texts and modes they have, which are primariy generated by Western Europe and the United States, and the situations they face on the ground. The other reason is that I find these varied property systems to be stimuating, chaenging, and interesting, compared to the generay high quaity and quantity of property data avaiabe in the United States. In addition to the generous sponsors and contributing authors, I woud ike to thank severa peope who had a arge roe in working with the seventeen authors who contributed the tweve artices in this peer-reviewed monograph. Rache Mamgren, a Master s student in the Urban Panning, Design, and Deveopment program in the Levin Coege of Urban Affairs at Ceveand State University, was one of my graduate students ast year and acted as associate managing editor for this project. Her steady work in portraying the attention span of the median reader, re-reading submissions, and handing the correspondence and keeping track of the various drafts is greaty appreciated. Associate Editor Garrick Sma from the University of Technoogy, in Sydney, Austraia aso did a fine job in editing and arranging peer-review of severa manuscripts of this Monograph. I woud aso ike to thank the peer-reviewers who toied for free on the tweve artices that appear in this voume and aso on the three submissions that did not make the fina cut. These incude Jim Webb, Ph.D., Richard Kein, Ph.D., Kimbery Winson Geideman, Ph.D., Ron Throupe, Ph.D., Jesse Saginor, Ph.D., Ay Karam, Ph.D., Professor Francois Viruy, and at east two other anonymous reviewers. Finay, I woud ike to xiii

14 xiv Editor s Foreword thank the Amighty for giving me the energy and wisdom to pursue this project, my wife Donna for encouraging me, aways being avaiabe as a sounding board with great advice and guidance, and heping keep my home ife stabe and cam, so I coud have the time to devote to this important work, and aso my sons Dan, Marc, Joe, and Sam for their cooperation and for giving me the need to pursue exceence wherever I find it. Ceveand, Ohio September 2007 Robert A. Simons

15 Preface 1 The Appraisa Institute and the Appraisa Institute Education Trust are peased to support the pubication of this research monograph on Indigenous Peopes and Rea Estate Vauation. Over the years, the Appraisa Institute has had a ong and coegia reationship with the American Rea Estate Society (ARES), and we are deighted to continue that reationship by cosponsoring a monograph such as this. Athough we have entered an era when both rea estate markets and vauation practice have become goba in nature, this monograph presents some insights on unique issues that may fa outside generay accepted vaue concepts. Despite the growing gobaization of vauation standards and practices, this monograph aims to shed ight on how property rights are perceived among various indigenous peopes and the effect those beiefs have when issues of property vauation arise in a wider context. It is an area that has been itte researched unti now, and we are gratefu to the contributors of this monograph for bringing these issues to our attention. For more than 50 years, the Appraisa Institute s Education Trust has had, as part of its mission, the mandate to promote and encourage research in every aspect of rea estate appraisa and to provide support to individua professionas and other organizations, such as ARES, in their efforts to advance the rea estate vauation profession around the gobe. Again, on behaf of the Appraisa Institute and the Appraisa Institute Education Trust, we congratuate ARES on the pubication of this monograph and for ARES ongoing efforts to expand the vauation body of knowedge. Sincerey, Terry R. Dunkin, MAI, SRA Sara Schwarzentraub, SRA 2007 President 2007 Chair Appraisa Institute Appraisa Institute Education Trust xv

16 Preface 2 The Appraisers Research Foundation (TARF) is peased to be a sponsor of the monograph on Rea Estate Vauation and Indigenous Peopes. This topic has become an important one to vauers in the United States and in Canada. The discussion and research is a project TARF is happy to support. Thanks to the American Rea Estate Society for providing this opportunity. The Appraisers Research Foundation (TARF) is a non-profit foundation whose purpose is to provide grants for research that assists vauation speciaists in providing appraisa services. The foowing is a partia ist of topics TARF woud consider in funding research. Water rights and their impact on irrigated farmands. Impact of conservation easements on contiguous and surrounding property. Provenance issues resuting from internet saes of fine arts. Aternative uses of contaminated properties. Supported aocation of vaue components of properties that incude rea estate, personaty, and business vaue. Pecuiarities of church vauations, their saes, conversions, and the appicabe approaches to vaue. Non-market supported saes. Trends in housing designs and demands. Conversion of big box properties. Trends that affect the vauation of food processing and distribution faciities. Changing consumer trends and the impact on property use and vaue. Provenance issues resuting from internet saes of fine arts. Contemporary issues in business, persona property, and rea estate vauation. TARF s website incudes the resuts of recent research projects and a partia ist of grants in progress. You may be interested in the findings of one or more of the research grants, isted beow. Pease see the Research Resuts and Grant Work in Progress pages at for more information. xvii

17 xviii Preface 2 Grants in Progress Predatory Lending, Cient Pressures and Appraisa Frauds by Steven R. Smith, MSREA, MAI, SRA Extraction of Percentages of Tota Empoyment Occupying Office Space by Joseph Rabianski, PhD, CRE Unwanted, Pouted, and Dangerous: America s Worst Abandoned Properties and What Can be Done About Them by Professor Justin Hoander Tufts University Grants Competed Appraising in the New Miennium: Due Diigence & Scope of Work by David Braun, MAI, SRA Data Management and Continua Verification for Accurate Appraisa Reports by Don Epey PhD., CCIM, MAI, Washington State University Highest and Best Use after a Disaster: A New Paradigm by Don Epey, PhD, CCIM, MAI, Distinguished Professor of Rea Estate University of South Aabama Environmenta Risk Premiums and Price Effects in Commercia Rea Estate Transactions by Thomas O. Jackson, PHD., MAI, CRE Texas A&M University and Rea Property Anaytics, Inc. Mod The Impact on the Vauation of Residentia Structures by Rudy R. Robinson, III, MAI Hote and Restaurant Feasibiity by Professor Bi Way University of Wisconsin Stout Manuscript Competition Recipient Union Panamericana De. Associaiones De Vauacion (UPAV) Entities receiving grants incude associations, university professors, practicing rea estate appraisers, institutions and professiona organizations. TARF is interested in a topics that affect vauation. Our website incudes a partia ist of specia interests. If you, or someone you know, woud be interested in appying for a grant, pease have them visit the TARF website for more information. Very truy yours, The Appraisers Research Foundation

18 Contents 1 Introduction to the ARES Monograph on Indigenous Peopes and Rea Estate Vauation Robert A. Simons, Rache Mamgren, and Garrick Sma 2 Indigenous Landhoding Institutions as an Impediment to Economic Use of Land: Case Studies of Tamae and Bogatanga in Ghana Raymond T. Abduai and Issaka E. Ndekugri 3 Rea Estate Practices Among Indigenous Peopes in Southern Africa: A Cash of Rea Estate Systems on the Urban Fringe Robert A. Simons and Francois M. Viruy 4 A Brief History of Native American Land Ownership Hans R. Isakson and Shauntreis Sproes 5 Indigenous Land Caims in Canada: A Retrospective Anaysis Robert A. Simons and Shwetha H. Pai 6 The Metaphysics of Indigenous Ownership: Why Indigenous Ownership is Incomparabe to Western Conceptions of Property Vaue Garrick Sma and John Sheehan 7 A Just Integration of Western and Customary Land Rights in Austraia Garrick Sma 8 Vauation of Yoruba Sacred Shrines, Monuments, and Groves for Compensation Bioye Tajudeen Auko, Emmanue Oufemi Omisore, and Abdu-Rasheed Amidu xix

19 xx Contents 9 Land Restitution and Restitution Vauation in South Africa Vamond Ghyoot 10 Property Rights and Land Market Dynamics: An Economic Interpretation of the Indigenous Land Tenure Transformation Process in Nigeria L. Jide Iwarere and Isaac F. Megbougbe 11 The 21st Century Property Chaenge: Reconciing Spirituaity, Sacred Paces, and Profit-Seeking Property Invovements Stephen E. Rouac 12 This Land Is Your Land, This Land Is My Land: Toward a Goba Anaysis of the Determinants of Successfu Indigenous Triba Land Caims Robert A. Simons and Rache Mamgren Index

20 Contributors Raymond T. Abduai Schoo of Engineering and the Buit Environment, Woverhampton University, Wufruna Street, Woverhampton, WV1 1SB, UK, e-mai: ac.uk Bioye Tajudeen Auko Department of Estate Management, Obafemi Awoowo University, Ie Ife, Nigeria, e-mai: or Abdu-Rasheed Amidu Department of Estate Management, Obafemi Awoowo University, Ie Ife, Nigeria, e-mai: Vamond Ghyoot Department of Finance, Risk Management and Banking, University of South Africa, PO Box 392, 0003 Unisa, South Africa, e-mai: Hans R. Isakson Department of Economics, University of Northern Iowa, Cedar Fas, Iowa , e-mai: L. Jide Iwarere Department of Finance, Int. Business, Insurance, Rea Estate, Schoo of Business, Howard University, Washington, DC 20059, USA, e-mai: howard.edu Rache Mamgren Ceveand State University, Levin Coege of Urban Affairs, 1717 Eucid Avenue, Ceveand, OH 44122, USA, e-mai: xxi

21 xxii Contributors Isaac F. Megbougbe Carey Business Schoo, Johns Hopkins University, The Edward St. John Department of Rea Estate, 100 North Chares Street, 7th Foor, Batimore, MD, 21201, (410) , e-mai: Issaka E. Ndekugri Schoo of Engineering and the Buit Environment, Woverhampton University, Wufruna Street, Woverhampton, WV1 1SB, UK, e-mai: ac.uk Emmanue Oufemi Omisore Department of Urban and regiona Panning, Obafemi Awoowo University, Ie Ife, Nigeria, e-mai: or Shwetha H. Pai UGL, Equis, (India) Rea Estate Private Ltd., Bangaore, India e-mai: Stephen E. Rouac Rouac Goba Paces LLC and University of Uster, Coeraine, Northern Ireand John Sheehan Schoo of Construction, Property and Project Management, Facuty of Design Architecture and Buiding, University of Technoogy Robert A. Simons Ceveand State University, Levin Coege of Urban Affairs, 1717 Eucid Avenue, Ceveand, OH , USA, e-mai: Garrick Sma University of Technoogy, Sydney, Broadway, NSW, Austraia, e-mai: garrick. Shauntreis Sproes Undergraduate Student, University of Northern Iowa, Cedar Fas, Iowa Francois M. Viruy Schoo of Construction Management and Economics, University of the Witwatersrand, Braamfontein 2017, Johannesburg, South Africa, e-mai:

22 Introduction to the ARES Monograph on Indigenous Peopes and Rea Estate Vauation Robert A. Simons, Rache Mamgren, and Garrick Sma The American Rea Estate Society (ARES) sponsored this monograph dedicated to Indigenous Peopes and Rea Estate Vauation. A variety of indigenous property topics and issues affecting numerous countries is presented here. From the issues caused by spread of cities into indigenousy owned and, to issues of and caims of former indigenousy occupied and, this monograph covers severa property issues that have emerged throughout the word. Indigenous Peopes and Rea Estate Vauation provides 12 chapters by 17 authors that incude timey research on these compex topics and aso some poicy suggestions and case studies that can be of use to government eaders, deveopers, enders, urban panners, and industry professionas. When two or more different systems of property ownership or rights come together, issues and even conficts are bound to surface. In many parts of the word, particuary in deveoping countries, this is becoming a big probem, whie in other parts of the word the conficting viewpoints have ong coexisted, but reparation of past conficts has more recenty become a pressing matter. Numerous indigenous issues that affect property rights and vauation emerge in this voume. These issues and conficts incude, but are not imited to, the foowing: ancestra buria, historica record of occupancy, pebiscite decision making, current occupation, treaty impementation probems, ayers of occupation, eminent domain, arge governmenta change, deaing with and financing projects under forma and informa tite or deed document systems, rights attached to ownership vs. nonexcusive use rights, age and size of and caims, pubic and ownership, triba or famiy and caim rights and poicies, insurgency or war in the country or with neighbors, ega vaue & ega system of ownership, prior government expropriation of ands, mora obigation to indigenous peopes, coonia occupation, and common and eases. These issues can aso be grouped into broader topics, such as confict between indigenous and Western property rights, communa and R.A. Simons Ceveand State University, Levin Coege of Urban Affairs, 1717 Eucid Avenue, Ceveand, OH , USA e-mai: r.simons@csuohio.edu R.A. Simons et a. (eds.), Indigenous Peopes and Rea Estate Vauation, DOI: / _1, Ó Springer ScienceþBusiness Media, LLC

23 2 R.A. Simons et a. ownership, and transfer by force, egacy issues reated to past coonization and apartheid, argey in Africa, and metaphysica/indigenous and vaue. The rest of this chapter covers each of the 11 remaining research artices. Each chapter is summarized, and saient common property points are set forth. Next, each broad issue is examined in greater detai, crosscutting each chapter. Exhibit 1 incudes a summary of each chapter, with the indigenous property issues covered. Chapter 2: Indigenous Landhoding Institutions as an Impediment to Economic Use of Land: Case Studies of Tamae and Bogatanga in Ghana In Indigenous Landhoding Institutions as an Impediment to Economic Use of Land: Case Studies of Tamae and Bogatanga in Ghana, Raymond Abduai and Issaka E. Ndekugri use two case studies (Tamae and Bogatanga, Ghana) to report on the theory that the communa nature of traditiona and ownership does not permit the rights of individua and ownership. In Ghana, 90% of the tota and area is communay owned. Communa and can be granted to individuas once they pay for it; then, they receive an aocation note giving grantees property rights to the and, when the foowing steps are competed: 1. Initiate steps for the preparation of a forma document (indenture) evidencing the and transaction; 2. Register his or her tite after the indenture has been prepared at the Deed Registry; 3. Pay ground rent to the Office of the Administrator of Stoo Land after the forma document has been prepared; 4. Commence deveopment within one year and compete within two years from the date of the aocation note, and where this condition is not compied with, the grantor-chief reserves the right to re-enter the and granted and take possession thereof. A iterature review on traditiona and ownership in Ghana was done to provide a background of the reevant theories associated with the topic. Quaitative research methods were used by surveying and grantors (Chiefs or famiies) and grantees in the two communities Tamae and Bogatanga. The iterature review concuded that theoreticay communa and ownership hindered the rights of the grantee, and economic benefits are ost because fu rights to the and do exist. In contrast to the iterature review, the survey resuts reveaed that fu ownership rights are enjoyed by the recipients of and grants and that and grantees are fuy recognized as owners of the property. The paper concuded that athough community and individua rights exist in customary and, this does not hinder individua ownership or economic deveopment of the and.

24 Exhibit 1 Property Topics/Issues Author Tite Robert A. Simons, Rache Mamgren, Garrick Sma Introduction to the Ares Monograph on Indigenous Peopes and Rea Estate Vauation Communa and ownership Raymond Abduai and Issaka E. Ndekugri Indigenous Landhoding Institutions as an Impediment to Economic Use of Land: Case Studies of Tamae and Bogatanga in Ghana 90% of and is communay owned by chiefs or famiies Robert A. Simons, Francois M. Viruy Rea Estate Practices among Indigenous Peopes in South Africa: A Cash of Property Systems on the Urban Fringe Communa rights a factor in property decisions Land transfer by force Descendants of chiefs can conquer and and then take over rights for tribe Confict between indigenous and Western property rights Coonias ignored the traditiona system of property rights Western infuence from coonies Dutch and British infuence Apartheid infuence Seperated Backs and Whites, kept Backs out of urban areas Cash in-ieu for and or caims Communa ownership hinders rights Rights are enjoyed by the grantees and recognized by grantors and community RSA government is deveoping system to extinguish tranditiona and ownership to gain a rights associated with Western ownership Metaphysica vaue of and Other topics Seperated Backs and Whites, kept Backs out of urban areas

25 Exhibit 1 (continued) Author Tite Hans R. Isakson, Shauntreis Sproes A Brief History of Native American Land Ownership Robert A. Simons, Shwetha H. Pai Indigenous Land Caims in Canada: A Retrospective Anaysis Communa and ownership No concept of private ownership among Native Americans Land transfer by force Pre-Equestrian Conficts between neighboring tribes over which tribe coud enjoy the fruits of the and, but not ownership Post-Equestrian triba warfare increased Post Coumbian by 1850 the number of treaties diminished, whie vioent conficts between Europeans and Native Americans rapidy increased. Coonizers gained ownership by miitary domination Confict between indigenous and Western property rights Land was segmented and given to Native Americans by US government but has continued to be segmented and no right of aienation exists Treaties were estabished to maintain agreed upon rights, but often were vioated. Land caims resut Western infuence from coonies Private ownership rights came about due to the fur trade with Europeans US and Canada coonizers used treaties to gain contro over NA territories Apartheid infuence Cash in-ieu for and or caims The Indian Remova Act of 1830 $500,000 to pay for the vountary reocation of NA into Indian Territory Monetary settement made and some First Nations have made successfu investments with the money Communa ownership hinders rights Metaphysica vaue of and Other topics Deep spiritua and materia reationship with and, right to and is vita for surviva and identity

26 Exhibit 1 (continued) Author Tite Garrick Sma, John Sheehan The Metaphysics of Indigenous Ownership: Why Indigenous Ownership Is Incomparabe to Western Conceptions of Property Vaue Garrick Sma A Just Integration of Western and Customary Land Rights in Austraia Communa and ownership Land is beieved to be owned by past, present, and future members of the tribe Indigenous customary tite are communa Land transfer by force Confict between indigenous and Western property rights Indigenous no right of aienation, compensation difficut. Western highest and best use not true in indigenous State easehods transfer to indigenous contro and probems in doing that, new tax, ease raise to market rate Western infuence from coonies Apartheid infuence Cash in-ieu for and or caims Vauation is difficut in this case because of the difficuty in pacing a monetary vaue on the and Communa ownership hinders rights Metaphysica vaue of and Other topics Attempts to pace a monetary vaue on metaphysica vaue of indigenous and has not proved to be satisfactory ethica/ spiritua/ega matrix of rights, obigations, and community reationships A reationship between peope and the and exists instead of rights associated with and State-owned and being eased beow market rate

27 Exhibit 1 (continued) Author Tite Bioye Tajudeen Auko, Emmanue Oufemi Omisore, and Abdu- Rasheed Amid Vauation of Yoruba Sacred Shrines, Monuments and Groves for Compensation Vamond Ghyoot Land Restitution and Restitution Vauation in South Africa L. Jide Iwarere, Isaac F. Megbougbe Property Rights and Land Market Dynamics: An Economic Interpretation of Indigenous Land Tenure Transformation Process in Nigeria Communa and ownership For the most part sacred sites are owned communay Land transfer by force Confict between indigenous and Western property rights Western infuence from coonies Bristish coony unti 1861 Apartheid infuence Land used by Backs was taken away during the apartheid government and now is being restored by and caims to Backs Cash in-ieu for and or caims Assessments have been 30 40% beow market vaue If property is restored to the origina owners, the current owners wi be compensated taking into account the current vaue, the history of the acquisition and the use of the and Communa ownership hinders rights Metaphysica vaue of and Other topics Difficut to pace a monetary vaue on a cutura treasure Land used by Backs was taken away during the apartheid government and now is being restored by and caims to Backs

28 Exhibit 1 (continued) Author Tite Stephen E. Rouac The 21st Century Property Chaenge: Reconciing Spirituaity, Sacred Paces and Profit- Seeking Property Invovements Robert A. Simons, Rache Mamgren This Land Is My Land, This Land Is Your Land: Toward a Goba Anaysis of the Deteruinates of Successfu Indigenous Triba Land Caims Communa and ownership Part of property cuturaist approach Land transfer by force Confict between indigenous and Western property rights Traditiona property cuturaist approach vs utiitarian and financiay driven property modernist approach Seeks to determine ways to resove conficts Western infuence from coonies Apartheid infuence Cash in-ieu for and or caims Communa ownership hinders rights Metaphysica vaue of and Other topics Tension between traditiona and financiay driven property perspectives, recognizing they overap and do share common ground

29 8 R.A. Simons et a. Property Issues Brought Forth in This Chapter Are as Foows Land ownership was determined by the chiefs or famiies who first setted on a piece of and and that and remains in the famiy ine. Descendants of chiefs can conquer and and take the rights. Land can be used (cutivated) by members of the community or peope outside the community, but once the and is granted, those peope have to eave. Communa and ownership does not hinder the rights of the grantee, and economic benefits are not ost since fu rights to the and exist. Chapter 3: Rea Estate Practices among Indigenous Peopes in South Africa: A Cash of Property Systems on the Urban Fringe Rea Estate Practices among Indigenous Peopes in South Africa: A Cash of Property Systems on the Urban Fringe by Robert A. Simons and Francois Viruy presents an investigation into the rea estate practices of indigenous peope in the countries of the Repubic of South Africa (RSA), Swaziand, Lesotho, and Botswana in Southern Africa. The research method consisted of case studies and interviews. The purpose of the investigation was to determine whether a or part of the conventiona U.S. mode of rea estate bunde of rights appies to cutures in Southern Africa and whether it shoud be appied to indigenous ands in deveoping countries. The resuts of the research found that the bunde of rights appies in parts, but communa rights pay a very important roe in property decisions and practices in Southern Africa. Whie a dua and system appies, the governments are deveoping and management and ownership systems, which wi end traditiona and ownership. However, on the urban fringe settements, the triba systems of rura areas and forma systems of urban areas are brought into confict, because there is no system in pace to dissove the customary rights before and is reaocated for deveopment. This confict is a chaenge for poicy makers. Simons and Viruy suggest the transfer of and hed under the customary system to a forma structure under a nationa deed registry, which woud create a forma coordinated method and reduce confict at the urban fringe. Property Issues Both the Dutch and British systems infuence and ownership arrangements for privatey owned and in confict with triba ega systems, consisting of unwritten customs passed on through generations. Coonia authorities ignored the indigenous systems. The apartheid era separated Backs and Whites and kept Backs out of urban areas in the Repubic of South Africa. Adjacent or coexisting informa and forma and systems are created due to the inefficient transfer of and from triba to forma markets at the urban fringe.

30 ARES Monograph on Indigenous Peopes and Rea Estate Vauation 9 The chaenge for deveoping countries is to ensure that and hed under a forma indigenous system is transferred to a forma structure under a nationa deed registry system. Chapter 4: A Brief History of Native American Land Ownership In A Brief History of Native American Land Ownership, the authors, Hans R. Isakson and Shauntreis Sproes, examine iterature to show the reationship between Native Americans and and. The objectives of this study were to examine some of the key economics iterature regarding how private property rights evove, to ook at some of the archeoogica and anthropoogica iterature regarding the reations between Native Americans and and during the eras of pre-coumbian and post-coumbian, and to discuss the impication of the past on the present and future reationship of Native Americans and and. Severa Acts of Congress were passed in order for the federa government to dea with Native Americans, but often these Acts had negative effects that ast to this day. The foowing are a ist of the Acts discussed in this chapter: the Indian Remova Act of 1830, the Genera Aotment Act of 1887 (Dawes Act), The Indian Reorganization Act of 1934, and the Indian Land Consoidation Act of The various acts succeeded to aot property, which became so fragmented that it is now virtuay worthess. The concusion of this chapter is that unti Native Americans have the right of aienation restored, it wi be very difficut for them to enjoy a the rights of private property ownership because transaction costs are very high. This factor, aong with the aws of the and set in pace by oca Indian government and the remnants of federa governmenta acts, makes the deveopment or economic use of Native American and by non- Indians very difficut even when done in partnership with Native Americans. Property Issues There were broken treaties between Native Americans and the government due to improper enforcement of aw. There was no concept of private and ownership among the Native American community. No right of aienation (right to se, ease, or mortgage property) exists for Native American and hed in trust by the Federa Government. Chapter 5: Indigenous Land Caims in Canada: A Retrospective Anaysis Indigenous Land Caims in Canada: a Retrospective Anaysis, by Robert A. Simons and Shwetha H. Pai, is a study of the indigenous and caims process (specific caims and comprehensive caims) in Canada. The chapter reports on,