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It's been 10 years Sharepoint is around, but this feature is still missing OOB. It would help immensely in governing a Sharepoint farm, IMHO. Administrators should only setup the rules as staten by the business, then nothing is to be done later.

We are doing in a limited way by using custom workflows with custom lists which maps the relation between security groups and managed metadata.

I am wondering, anyone has implemented this with some custom code ? I know there is a product called Titus, anyone has used it successfully in real world ?. Not sure how it would impact the Sharepoint installation, I am always skeptical of installing third party solutions.

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I think an eventreceiver should handle this pretty well. Here's some code that I haven't tested but looks pretty sound: http://social.technet.microsoft.com/Forums/en-US/sharepoint2010programming/thread/18dcb996-5352-4856-b526-b69ccc71180e/

If you wanted more flexible solution, you could implement the event receiver to read from a property bag or some other configuration store and create an application page to configure it.

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In SharePoint 2010 you can assign permissions via SharePoint Designer workflows. So, you could use the metadata in the workflow to assign permissions as necessary.

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Note that the ability to do this is deprecated in 2013 –  lgaud Oct 22 '12 at 14:50
    
"Add list item permissions" is the first one on the list in your link. Deprecated beyond 2013 perhaps, but still possible within 2013. –  RJ Cuthbertson Oct 22 '12 at 17:15
    
Something for sharepoint.stackexchange.com/q/49622/627 ? :) –  eirikb Oct 22 '12 at 18:57
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