PROCEDURE FOR BUYING/PURCHASING LAND FROM A COMPANY IN UGANDA.
- THE CONSTITUTION OF THE REPUBLIC OF UGANDA, 1995 AS AMENDED.
- LAND ACT 1998 AS AMENDED
- THE LAND AMENDEMENT ACT 2004.
- THE RTA CAP 230
- THE COMPANIES ACT OF 2012
- THE CUSTOMARY LAWS OF The society where land is situate.
- AMONG OTHERS
- Decide on which land tenure
system you want to purchase, there are four land tenure systems in Uganda
under which land can be owned as per article 237 of the Constitution and
section 2 of LAND ACT 1998 namely, customary land tenure; freehold land
tenure; mailo land tenure; and leasehold land tenure.
- Customary Land Tenure: is a
form of tenure—applicable to a specific area of land and a specific
description or class of persons; subject to section 27, governed by rules
generally accepted as binding and authoritative by the class of persons
to which it applies, it is applicable to any persons acquiring land in
that area in
accordance with those rules; subject to section 27, characterized by local customary regulation; applying local customary regulation and management to individual and household ownership, use and occupation of, and transactions in, land;(f) (g)(h)providing for communal ownership and use of land; in which parcels of land may be recognized as subdivisions belonging to a person, a family or a traditional institution; and which is owned in perpetuity. Most land in Uganda is customary, it is not registered under registration of titles Act though one can obtain certificate of customary ownership at the district level, only Ugandans can own/acquire land under this tenure system section 1 of LAND ACT 1998.
Freehold- Land Tenure:. Freehold tenure is a form of tenure deriving its legality from the Constitution and its incidents from the written law which—involves the holding of registered land in perpetuity or for a period less than perpetuity which may be fixed by a condition; enables the holder to exercise, subject to the law, full powers of ownership of land, including but not necessarily limited to section 5 of LAND ACT 1998. - The Land Act recognizes it as
one of the four land tenure systems through which access to land rights
may be obtained. Its incidents are defined to include registration of
title in perpetuity and conferment of full powers of ownership (i.e. the
power of use, abuse and disposition). Dealings in freehold land are
governed by the Registration of Titles Act (Cap. 230). Only Ugandans can
own/acquire land under this tenure system
Mailo Land Tenure: Mailo tenure is a form of tenure deriving its legality from the Constitution and its incidents from the written law which—
(a) (b)involves the holding of registered land in perpetuity;permits the separation of ownership of land from the ownership of developments on land made by a lawful or bona fide occupant; and
(c)enables the holder, subject to the customary and statutory rights of those persons lawful or bona fide in occupation of the land at the time that the tenure was created and their successors in title, to exercise all the powers of ownership of the owner of land held of a freehold title set out in subsections (2) and (3) and subject to the same possibility of conditions, restrictions and limitations, positive or negative in their application, as are referred to in those subsections. Section 4 of LAND ACT 1998.
- Customary Land Tenure: is a
form of tenure—applicable to a specific area of land and a specific
description or class of persons; subject to section 27, governed by rules
generally accepted as binding and authoritative by the class of persons
to which it applies, it is applicable to any persons acquiring land in
that area in
Land
held under mailo tenure is confined to Buganda (Central Uganda). This tenure
system confers specie of freehold granted by the colonial government in
exchange for political co-operation under the 1900 Buganda Agreement. the mailo
tenure system recognizes occupancy by tenants (locally called Kibanja holders),
whose relationship with their overlords is now governed by the provisions of
the Land Act. Mailo land, like freehold is registered under the Registration of
Titles Act. All transactions must therefore be entered in a register guaranteed
by the state. Only Ugandans can own/acquire land under this tenure system.
• Leasehold Tenure: Leasehold tenure is a form of tenure—created either by
contract or by operation of law;the terms and conditions of which may be
regulated by law to the exclusion of any contractual agreement reached between
the parties;under which one person, namely the landlord or lessor, grants or is
deemed to have granted another person, namely the tenant or lessee, exclusive
possession of land usually but not necessarily for a period defined, directly
or indirectly, by reference to a specific date of commencement and a specific
date of ending; usually but not necessarily in return for a rent which may be
for a capital sum known as a premium or for both a rent and a premium but may
be in return for services or may be free of any required return; under which
both the landlord and the tenant may, subject to the terms and conditions of
the lease and having due regard for the interests of the other party, exercise
such of the powers of a freehold owner as are appropriate and possible given
the specific nature of a leasehold tenure section 5 of LAND ACT 1998.
- The leasehold can be obtained from any tenure system whether customary, freehold or mailo. It involves the derivation of land rights from a land lord/owner and the enjoyment of such rights in exchange of conditions including, but not limited to, the payment of rent. The leasehold transactions, being essentially contractual allow parties to define the terms and conditions of access in such a manner as to suit their reciprocal land use needs. The leasehold is particularly useful in urban areas or in situations of rapid changes in land use or market demands, both Ugandans and non Ugandans can acquire land under this tenure system
- After choosing the tenure the company wants ,Identify the piece of land you wish to purchase
- Find out the asking price of that piece of land whether it is within your budget
- Identify the COMPANY which is the registered proprietor of that piece of land
- If the person selling you is other than the company (registered proprietor) he/she should have registered powers of attorney granting him or her authority to sell that piece of land.
- That company must convene meeting and pass a resolution to sell that piece of land.
- The resolution to sell the land should then be registered with registrar of companies within 14 days from the date of passing the same.
- The prospective seller should provide you with all company and land documents confirming its ownership and identity for your verification
- Ascertain ownership of the same piece of land by carrying out legal due diligence which involves physical search on the land and if it is registered land conduct search at the land registry in that area.(see the post on how one may conduct search on customary land,freehold land,mailo land,and Leasehold land in Uganda depending on the tenure)
- If you are satisfied with ownership of that piece of land, negotiate the terms and conditions for the intended purchase or engage a lawyer for that purpose. Most people concentrate on negotiating price alone leaving key issues unattended to which sometimes make land purchase deal sour.
- If there are other people with interests in the land, consent must be obtained from them in writing.
- If you have agreed with the buyer in your negotiations, reduce your agreement in writing.
- Both the parties should go through the agreement to confirm whether the contents therein are true reflection of their intentions.
- In case there is aparty to the agreement who is illiterate. certificate by Jurat must be issued
- Both parties should confirm the contents therein to their respective witnesses
- The seller should sign, stamp/seal the agreement through its authorized officers ie the managing director, directors and company secretary or any other person authorized by instrument by the company for that purpose and thereafter its witness should also sign or thumb print.
- The purchaser should also sign the agreement accordingly and have his or her witnesses sign too. In case it is a company purchasing it should sign, stamp/seal the agreement through its authorized officers ie the managing director, directors and company secretary or any other person authorized by instrument by the company for that purpose and thereafter its witness should also sign or thumb print.
- Payments should be made in accordance to the sale agreement
- All documents transferring ownership from the seller to the buyer should be signed and handed over to the purchaser depending on the land tenure one is purchasing.
NB Do not purchase any land without transactions’ lawyer conducting legal due diligence on the same
Author is A regional transactions legal consultant (ADVOCATE) at NOA REGIONAL ASSOCIATED ADVOCATES AND LEGAL CONSULTANTS
Email address: onlinetransactionconsultancy@gmail.com.
Contacts. +250787311255, +256788105242
What sup +256788105242,+250787311255
NOTE: whereas the author has made necessary efforts to ensure the accuracy of this post, it is not intended to provide specific legal advice to a particular individual as individual situations may differ.
For specific technical / legal transaction advice on this subject matter and related subject, you may contact the author at online consultancy fee, or contact any transaction legal consultant of your choice.
For avoidance of impersonation, all email correspondences/communication from me to you must be followed up with a phone call on the above mobile number to verify the contents of replies from my email account pertaining a given subject matter..
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