Dec 09 1 Comment

LEASEHOLD TENURE IN UGANDA

Leasehold tenure is contracted out by owners or holders of customary, freehold, mailo, or public land. It is the tenure type most commonly used by foreign investors. Foreigners may obtain contracts for leases of the land of up to 99 years, with the opportunity for renewal.

According to the Land Act of 1998, Section 40(2), “A lease of five years or more acquired by a noncitizen shall be registered following the Registration of Titles Act.” The Registration of Titles Act of 1924 lays out the procedures for registering leaseholds. Long-term leases can be used as collateral to obtain a commercial loan.

Public land controlled by the District land board is available for leasing by a District Land Board to an applicant when it is either;
(i) vacant and there are no conflicting claims to it,
(ii) or is occupied by the applicant and there are no adverse claims to that occupation,
(iii) or where the applicant is not in occupation but has a superior equitable claim to that of the occupant,
(iv) or where the applicant is not in occupation but the occupant has no objection to the application.

If a Ugandan who holds land in Freehold and Mailo tenure loses their citizenship, their land automatically changes to a lease of 99 years. This is because a non-citizen can only own land in leasehold tenure.
How to acquire a Leasehold Land Title

HOW TO ACQUIRE LEASEHOLD TITLE IN UGANDA

Step 1

The Applicant must have in his/her possession fully completed Forms 8, 10, 18, 23, a set of 3 authentic deed plans, 3 Passport Photographs, Receipts of Payment, and a forwarding letter requesting for a Leasehold title signed by the District Land Officer of the respective District where the land is located.

Step 2

The Applicant presents the full set of original documents and a photocopy of the same, to the Department of Land Administration for Checking. The Photocopy is stamped ‘Received’ and returned to the Applicant. The Applicant checks with the Department of Land Administration after 10 working days to confirm their approval or rejection and is given a letter advising him/her on the fees to be paid.

Step 3

Once approved, the documents are forwarded to the Department of Land Registration for preparation and issuance of Lease agreements. The applicant checks after 10 working days to pick up the Lease agreements for signing and sealing by the Chairperson and the Secretary of the respective District Land Board and to Pay Stamp Duty, which is 1% of the Premium and Ground Rent.

Step 4

The applicant presents fully signed and sealed lease documents by the District Land Board Chairperson and Secretary and lease agreements embossed by URA. The applicant is given a photocopy of the lease agreements stamped ‘Received’.

Step 5

The applicant presents the photocopy given to him/her by the Department of Land Registration stamped ‘Received’ and identification documents on collecting the Leasehold Title. The applicant signs for the Title and the Photocopy is stamped ‘Returned’ on completion.

HOW TO RENEW A LEASE IN UGANDA.

1. All land leases expire on the last day of the contractual period.
2. Some leases are renewed automatically while others must be renewed subject to grant upon request depending on the lease terms.
3. You can only renew a lease expired, that is when the lease period comes to an end. However, should you want to change anything in an ongoing lease you may go for lease variation or extension.

CONVERSION OF LEASEHOLD INTO FREEHOLD IN UGANDA.

A lease that was granted to a Ugandan citizen out of formerly public land can be converted to freehold. Where a lease of land exceeding one hundred hectares is converted into freehold, the owner shall pay the market value as determined by the chief government valuer for the new interest before the conversion becomes effective and the money paid shall become part of the Land Fund.

PS. All land sold by Luba Properties is Private Mailo land. If you have any land-related matters, please give us a call on 0773259007/ 075744466.

Oct 21 No Comments

Understanding Customary Land Tenure in Uganda

Categories:Education,Land

CUSTOMARY LAND TENURE IN UGANDA
Customary land owned by community members, consent of the community members is required for any land transaction while for land owned by a family, consent of the spouse and children must be obtained.

Customary land can also be converted to freehold land where the owners wish to change it. (Section 9 of the Land Act)
Under customary systems, the land is owned and disposed of under customary regulations. The land can be owned by an individual, a family, or a community, and is the most dominant system in Uganda. Under this tenure, proper records are not kept which makes it difficult to purchase land and resolve land-related conflicts. The inherent insecurity leads to mismanagement and degradation, as little personal interest in the land exists.

Types of Customary Land

1. Customary communal land; where persons or communities share ownership or use of land for a common purpose. A particular group of people in a particular area for purposes like grazing, water source, and firewood collection, wild fruits and vegetables, fishing, harvesting honey, and white ants, cutting papyrus, etc, communally owns the land. In most cases, the rights to access this land are inherited.

2. Customary family land; is where the head of the family or clan may be said to ‘own’ the land. Its utilization is usually controlled by the family head, elders, clan heads, or a group in its well-defined administrative structures. The family heads are responsible for protecting the land and ensuring that every family member gets the right to use some part of the land. Family land is inherited within the family. The management of the land is passed down from parents to children and their family members but kept within the family.

3. Individual customary land; is where an individual is said to ‘own’ land because the land was allocated to them, to use or own permanently, or they inherited the land or purchased the customary land as an individual. This will include the right to allocate potions of the land to the next generation.

Customary land is very different from Kabaka’s land or official mailo.

What is “Kabaka’s Land”?

During the 1900 Buganda Agreement, all land in Buganda was divided into two; crown land, which was under the control of the colonial government, and mailo land.

This mailo land was also divided into two; Official mailo and private mailo.

Official mailo includes the land given to the Kabaka (350 square miles) and the ssaza chiefs who got eight square miles, among others.

The 350 square miles is the land that is currently managed by the Buganda Land Board. This land is predominately found in suburbs such as Nansana, Munyonyo, Buziga, Konge, Kigo, Maganjo, Kagoma, and Ganda, among others.

One cannot buy and own the “Kabaka’s land”. The reason why they only give leases on this land. The difference between “kabaka’s land” and private mailo is that a buyer is only given a leasehold title for the Kabaka’s land while for private mailo one can get either a leasehold title or an outright transfer.

Buying land is easy more so if you have the money at hand. But always be mindful of the type of tenure of the land in question.

At Luba Properties, all the land we sell is private mailo which means the land is titled and can be owned forever and can be passed on to the next generation. Give us a call on 0773259007/ 0757444666 or email us at info@lubaproperties.ug

Oct 14 14 Comments

Procedure of acquiring a Land Title in Uganda

Categories:Education,Land

Acquiring land and a valid land title is very easy when you follow the right procedure.

Visit the Site

The first step you need to take when purchasing land and acquiring land is a visit to the site and verify if the plot you are buying exists.

This visit also helps you appreciate the neighborhood, the geography, and other preferred features.

Use a professional surveyor

You have to verify the property size before executing the acquisition of the land title.

Get a professional registered surveyor to carry out a topographic survey of the land and confirm to you the size and shape as indicated on the title.

The surveyor will also identify the land boundaries and mark stones. And he will issue to you a survey report in that respect to avoid future conflicts with the neighbors.

Payment of land title

You must know if the payment rate for the title is a legitimate requirement and the seller should clear any pending debts on the property before completing the transaction.

The seller should present a clearance certificate for the land before it is transferred to the buyer, including the original land title, transfer documents if any, and consent to transfer. The seller organizes transfer documents to be executed by both parties.

These documents will only be accomplished following an issued consent to transfer by the commissioner of lands.

Requirements for transfer

When the registration course is done, the lawful possession of the land shall have legally changed hands there and then and have independent ownership.

For a legal transfer of ownership to take place, one needs:

The original title deed of the land.
Original stamp duty assessment forms, and receipt
Duly stamped transfer documents.
Clearance certificate.
Stamp duty valuation report.
Original land rates clearance certificate.
Consent to transfer plus application for registration.

Sep 16 6 Comments

What is Freehold Tenure?

Categories:Education,Land

FREEHOLD TENURE IN UGANDA

The Land Act 1998 defines freehold tenure as a tenure that bestows upon someone ownership of registered land in eternity –which means “owning the land forever,”

This type of tenure was set up by the 1900 agreement between Buganda and the British colonial government.
Most owners of land under this tenure acquired it as grants from the colonial government before independence and from the Uganda Lands Commission after independence –with only a few having bought it from the government.

The Land Act specifies that the holder of land in freehold has the full power of ownership, which means they can use it for any lawful purpose and sell, rent, lease, dispose of it by will.

The act also decrees that only citizens of Uganda can own land under freehold tenure, with non-citizens allowed only the alternative of leasing it for a period of up to 99 years.

Obtaining certificates of title under this tenure is pursued directly through the government authorities where the Sub-county land office, the district land office, and the zonal office of the Ministry of Lands are all involved.