A decade has passed since Mongolia has authorized its citizens to own lands without any charges. This right was guaranteed by the Constitution of Mongolia that was adopted in 1992. According to the new Constitution, our country has chosen the democratic system of government as well as a development based on free market economy. This historical decision eventually caused the need for creation of an independent Law on Citizen's Ownership of land and this law was passed on June 28 of 2002 by the State Great Khural. According to the law, members of the family have the right on joint ownership of land for family purposes.
Nowadays, every citizen has the right to own land by the law which was amended on May, 2008. Besides that, every resident in Ulaanbaatar city was provided with a right to have lands outside the capital city in territories of other provinces.
Since the law on the land ownership for Mongolian citizens came into force on May 1 of 2003, about 96 thousand citizens have owned over 5000 hectares areas in Ulaanbaatar city for family uses, with a single-benefit charge. The capital city has the population of 1 million and 200 thousand people so far, which is equivalent of 45.8% of the country’s population. Comparing to this figure, only 7.8% of the total population in the capital have owned lands.

Free-of-charge ownership of land has significantly contributed reducing the poverty rate in the country. The people with own lands have started to putting their lands into economic circulation in different ways. For instance, about 15 thousand people at a duplicated number have pledged their lands for taking loans from commercial banks as of the years 2004-2011. Most of these people have spent their loans for doing small- and middle-sized business.