Overview
Real estate in Próspera is governed by U.S. common law property law principles. Property interests are registered with the Próspera Property Registry, which is a Torrens registry inspired by the New Zealand/Australian property registry system. What this means is that property is purchased, leased, mortgaged, made subject to common interest community declarations and other covenants, and sold in Próspera very much like in the United States. But they are registered in a registry that, by law, ensures the registered title and other registered property interests are presumptively reliable, avoiding the need for title insurance unless you are especially risk averse or seeking to mitigate political risk. You can visit the public registry at prospera-sure.hn (username/password: public) to see registered properties in Próspera.
Requirements
Only natural persons and legal entities that are physical (full-time) Residents or eResidents (not limited eResidents) are entitled to own or lease real property in Próspera. Property interests in the Próspera Property Registry may only be registered by attorneys or individuals who are covered by a $1,000,000.00 liability policy. The Registrar may not accept registrations on behalf of any person who is not current with tax, fee, or regulatory compliance obligations.
Real property in Próspera is typically subject to a common interest community declaration containing covenants, conditions and restrictions that ensure observation of the Rules of Próspera ZEDE, grant parens patriae rights to the Promoter and Organizer to enforce rights and mitigate nuisances, and also to ensure that all future common interest community bodies which are functionally equivalent to the ZEDE itself are bound by the Resident Bill of Rights, unless those rights are knowingly and voluntarily waived.
Incorporating Land
Any land that is unencumbered and within the departments adjoining the Gulf of Fonseca and the Caribbean Sea of the National Territory of Honduras, including, but not limited to, the Bay Islands, can apply to be incorporated by the property owner into the Próspera ZEDE provided that the property has a population density that is fewer than 35.0 permanent inhabitants per square kilometer, which, according to established CAMP procedures under Article 39 of the Organic Law, is estimated as a maximum density of 1.0 permanent inhabitant per ~7.0 acres; or uninhabited if under 7.0 acres. The Próspera ZEDE will not accept land for incorporation that has been subject to eminent domain, and will require evidence that incorporation is being done exclusively through voluntary participation.
Assuming these requisites are met, the incorporation process requires the owner to submit a notarial declaration of intent to register the land in the ZEDE special registry maintained by the CAMP (the national ZEDE oversight agency), as well as enter into an Resolution-approved incorporation agreement with the Promoter and Organizer, Próspera ZEDE, and the General Service Provider. By Próspera ZEDE Rule, the incorporation agreement includes an agreement to the common interest community declaration discussed above, as well as provisions aimed at defraying the cost of public services, which may include impact fees, as well as required purchases of (e)Residencies or Marketable Tax Credits. The incorporation agreement can also include other provisions that are wholly the product of negotiation; but the end result must be approved by Resolution, and conflict of interest clearance requirements as well as principles of equal protection under the law limit the extent to which special treatment can be given to any particular landowner. Once CAMP accepts the land for registration in the ZEDE special registry, the land will be registered in the Próspera Property Registry. Thereafter, the land is legally a part of Próspera ZEDE, but to perfect the incorporation status, we recommend also pursuing the ministerial step of causing the National Property Institute to transfer title to the land from the national property registry to the Próspera Property. This requires a petition and, due to an unlawful lack of cooperation from the Castro administration with its ministerial duties, also litigation in all likelihood to compel the registrar to effectuate the title transfer.
Severed Rights
Owners of land to be incorporated into Próspera ZEDE have the option of joining the system of 3D severed rights that is under development. This system enables the separte buying and selling of development, use, exclusion, occupancy, and other rights that are typically bundled with title to land. It also conceptualizes the ownership of real estate as consisting of the ownership of cubic meter volumes of excludable, buildable, or built spaces. These features enable land purchases and sales to include only as much volume, uses, occupancy density, and set backs as are necessary for a contemplated development, rather than the typical common law rule that land title includes all volume from "heaven to hell" and the bundling of all possible legal rights. We believe the severed rights system is critical to efficient land development as well as decentralizing land use regulation to market forces. If a landowner wishes to join the system, the severed rights framework will be included in the common interest community declaration that accompanies the incorporation agreement.