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
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