Customary Land in Uganda – Everything you need to Know!

What is Customary Land?

Customary land tenure refers to the system of land ownership and management that is based on traditional cultural practices and customs in a particular community. In Uganda, customary land tenure is the most prevalent form of land ownership outside Buganda, covering more than 85% of the country’s land area.

There are different forms in which customary land tenure exists in different parts of Uganda. In some places, the land is held communally, in some it belongs to a particular clan while in others, it is held by individuals.

The rules of customary law also vary in different parts of the country. The Land Act 1998 states that customary land tenure shall be governed by rules generally accepted as binding by the particular community, and anyone who acquires land in that community shall also be bound by the same rules.

Advantages of Customary Land Tenure in Uganda:

Social security: Customary land tenure provides social security to communities, as it gives individuals and families a sense of belonging and stability. This helps to ensure that people have access to the resources they need to survive and thrive, such as land for agriculture and housing.
Flexibility: The customary land tenure system is highly flexible, allowing individuals to easily access land for different purposes, such as agriculture, forestry, and housing. It also allows for the transfer of land ownership through inheritance or sale, which can be done quickly and efficiently.
Inclusiveness: Customary land tenure is an inclusive system, as it allows for the participation of both men and women in land-related decisions. This promotes gender equality and helps to ensure that both men and women have access to the resources they need to live productive lives.
Sustainability: The customary land tenure system is also sustainable, as it is based on the principles of intergenerational equity and the responsible use of resources. This helps to ensure that the land is managed in a way that benefits future generations, while also protecting the environment.

Disadvantages of Customary Land Tenure in Uganda:

Lack of formal recognition: Despite its prevalence, customary land tenure is often not formally recognized by the government, which can lead to difficulties in accessing land-related services and benefits. This can also lead to disputes over land ownership and usage, as there is no clear and official record of land ownership.
Insecurity of tenure: Customary land tenure is often based on informal agreements and unwritten rules, which can make it difficult to enforce land rights. This can result in land grabbing and the displacement of communities, as well as making it difficult for individuals and communities to access land-related services and benefits.
Limited access to credit: The informal nature of customary land tenure can also limit access to credit, as individuals and communities may not have the documentation required to secure loans. This can make it difficult for communities to invest in agriculture, forestry, and other land-related activities.

Obtaining a private certificate of title is possible for individuals, whereby they have to agree with the community that owns the land (the clan or tribal chiefs), then the Sub-county and government land boards take up the process of issuing the title.

To convert customary land to freehold in Uganda, you’ll need to take the following steps:

Obtain a certificate of occupancy from the Commissioner of Lands, which is a government-issued document that confirms ownership of the land.
Get the land surveyed and have a plan prepared by a registered surveyor.
File an application for leasehold conversion to the Ministry of Lands, Housing, and Urban Development.
Pay the conversion fee, which is calculated based on the size and location of the land.
Wait for the conversion to be approved, which usually takes several months.
Obtain a leasehold certificate of title, which serves as proof of ownership for the converted land.

Note: These steps may vary and it is best to seek the assistance of a legal professional to ensure a smooth conversion process.

In conclusion, the customary land tenure system in Uganda has both advantages and disadvantages. On one hand, it provides social security, flexibility, inclusiveness, and sustainability, while on the other hand, it also faces challenges such as lack of formal recognition, insecurity of tenure, limited access to credit, and lack of transparency. To address these challenges, it is important for the government to formally recognize customary land tenure and provide the necessary support and services to communities, such as access to credit and dispute resolution mechanisms. This will help to ensure that the benefits of customary land tenure are enjoyed by all, while also ensuring that land resources are managed responsibly and sustainably.

At LUBA Properties Ltd, we only sell private mailo land. If you have any land-related questions, talk to us: 0773259007 or 0757444666

Jan 04 3 Comments

Press Statement on the Delays in Tiitle Processing

Categories:Land

Mpererwe , Kampala – Uganda.

Following a number of changes made by the Ministry of Lands, a number of our clients through different real estate companies have started experiencing unnecessary delays in the processing of titles.

Members of the public are now questioning these delays as many have been left stranded as most of them happen to have land transactions held up in different government land offices across the Country.

LUBA Properties Limited is the leading Ugandan real Estate company specializing in all land transactions inclusive but not limited to outright sales, purchases and transfer of ownership in Uganda.

As market leaders, we have experienced a lot of technical delays born out of upgrades at the Ministry of Land, housing and urban development. We, therefore, call on all stakeholders to apprehend the following;

There needs to be sensitization of all Ugandans on the importance of having a functional land information management system, and time frames and requirements needed to have successful transactions.

The feedback we are getting from the land offices indicates that most of the data from old titles haven’t been incorporated into the new system. Like most private Mailo land titles under Buleemezi County. For example: Land on Block 1026 Buleemezi (Kisingiri Land) hasn’t been uploaded onto the new system for now over 3 years. This has greatly affected all transactions on the said land.

We call for clarity from Uganda Revenue Authority on the new development requiring both parties in land transactions above the 10 million thresholds to avail a TIN. We feel like the short notice on Uganda Revenue Authority’s part has not been effectively communicated.

High levels of bribery we’re experiencing at lands offices where “Kintu Kidogo” have exposed our clients to consumer exploitation. We, therefore, recommend that government revisits the consumer protection land policies and have titles processed in due time.

We pray that in the coming year, the government through the ministry of lands makes the appropriate changes because many buyers (landowners) need these titles as collateral when acquiring loans from financial institutions, during construction of property and trading. These delays in land title processing end up crippling the development of the nation we all love so much.

Thank you

LUBA Properties Limited Press

Nov 10 5 Comments

What is Kabaka’s Land and how it differs from Private Mailo Land

Categories:Education,Land

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 Kabaka’s land while for private mailo one can get either a leasehold title or an outright transfer.

The Difference Between Private Mailo Land and Kabaka’s Land

Private Mailo; Private Mailo is the land parcelled out to individuals in the sense that it was their property. “People such as Kabaka Daudi Chwa, his mother, the Muhamedian prince, who was Mbogo, and the mother of Mwanga, were given land as individuals.

They could deal with this land as they deemed fit; they could transfer it, or if one got a financial problem or any other, they could sell it.

Between 1900 and 1908, roughly 1,300 Baganda individuals and institutions, including churches, were given the Private Mailo. Private owners own their property in perpetuity (forever) and can sell or pass their rights on to their heirs.

Official Mailo; the Kabaka owns this land because of his position. The sale of Kabaka’s land is not permitted because it benefits the Kabaka’s office, Katikkiro, Ssaza, and Gombolola Chiefs. In distinction, with Private Mailo, one can get either a leasehold title or an outright transfer.

The other difference is that one has to pay the premium and annual ground rent for Kabaka’s land. In contrast with the Private Mailo, you only pay for the premium.

The official premium is 10% of the land’s capital value, while ground rent is 1% of the premium. Let’s say “If a plot, say in Buziga, costs USh 40 million, that is its capital value. The premium is 10 per cent, which translates into USh 4 million, while the ground rent is one per cent of USh 4 million which is USh 400, 000. For that plot in Buziga one pays premium once, and annual ground rent over the 49 years.”

When the lease expires, the land returns to Kabaka’s ownership. The Kabaka’s office determines whether to extend the lease. But it is the policy of Buganda Land Board that once a lease expires, we renew it and give it to the sitting tenant.”

All land sold at LUBA Properties Limited is Private Mailo Land. Talk to us on 0773259007 or 0757444666 for more information.

Jun 01 54 Comments

How to Register and Transfer a Land Title in Uganda

Categories:Education,Land

After you have purchased your piece of land – now it’s time to transfer your land title into your names. The process seems complicated on the outside but when you look closer, it is simplified into a few steps explained below using land in Kampala as a case study – let’s dive in.

REQUEST A SEARCH AND CONSENT FORM
The first step in registering land is always requesting this form. The ministry of Land gives you a request form where you fill out the details about the land to be searched.
The registry also provides a Bank Advice Form, which is used to pay cash in the bank for this search. This form serves two purposes as it is the same form used during the payment of taxes. Even in cases of freehold ownership, one does not have to request consent to transfer. This form will be used to determine the amount of tax payments owed and to make payments.

PAY SEARCH FEE
After obtaining the Bank Advice Form, you can go ahead and make a payment in the designated bank upon which a receipt is granted. This receipt has to be presented at the registry before the search is conducted.

CONDUCT THE SEARCH AND DRAFT THE AGREEMENT
After payment, the search is conducted at the registry. The receipt of payment for the search has to be presented before the search can be conducted. It is also at this point that one picks up the consent to transfer application.
After this, an agreement is drafted. This is usually drafted by a lawyer and although it is not mandatory, this is common practice.

VALUATION OF PROPERTY
This is usually done by the Chief Government Valuer’s office. This is to mainly determine the value of the property for transfer purposes, assessment purposes, and also for payment of stamp duty.

OBTAIN CLEARANCE FORM AND ASSESSMENT OF STAMP DUTY
After the valuer has approved the cost of the property, the file is taken to URA where an assessment form for stamp duty is provided. However, anyone purchasing land valued at more than Shs 50m must provide an income tax clearance indicating their source of income for tax purposes.

PAYMENT OF STAMP DUTY
Stamp duty is then paid in the designated commercial bank. Here, it is required that payment is only made at the designated commercial bank. The bank then notifies URA that the payment has been made. There is a reconciliation process between the bank and the revenue authority which takes three working days.

CONSENT TO TRANSFER BY THE LAND BOARD IN KAMPALA
The transfer forms are then taken to the land board in Kampala for consent. Here, the receipts of payment of consent forms must be presented. However, if companies are involved in the transaction, they must file with the companies registry for a special authorization which costs a fee of 20,000 shillings.

ASSESSMENT OF REGISTRATION FEES
The sales agreement is then presented to Kampala Capital City Authority to approve the registration fee. An assessment form is then provided with a registration fee to be paid at the designated bank. The documents include a signed sales agreement, a receipt of payment of the stamp duty, and the company’s resolutions to buy and sell.

TRANSFER DOCUMENTS ARE THEN KEPT AT THE REGISTRY OF LANDS
The transfer documents are later stored at the Registry of lands and then transmitted to the Registrar who passes the instrument of transfer. It is then later sent to the commissioner in charge of land registration for verification.
The registrar cancels out the old owner and replaces him with the new owner in handwriting. The buyer and seller are required to provide passport photos for this process.

To round it up, land transfer documents include receipts of payment for registration fees and stamp duties, plus passport photos of both the seller and buyer of the property.

If you need help with registering your rights on a piece of land or transferring a land title – contact us on 0773259007/ 0757444666 or email us at info@lubaproperties.ug

Read more about land in Uganda on our website: www.lubaproperties.ug

Dec 09 1 Comment

LEASEHOLD TENURE IN UGANDA

Categories:Education,Land

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.

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.