Lands Minister Judith Nabakooba has presented a new bill to Cabinet dubbed ‘The Real Estate Bill’ to regulate the real estate business in Uganda.
She made the revelation recently while officiating at the 2nd National Housing Symposium which also marked the World Habitat Day celebrations at Mestil Hotel in Kampala.
“I presented it (Real Estate Bill) to Cabinet and they approved its principles but tasked us to expound on our consultations and benchmarking in a few countries on how they are running their real estate services,” she stated. A team from the Ministry of Lands has since visited South Africa, India, and Kenya where they benchmarked on how best the real estate business can be regulated to stem illegal transactions and fraud.
Important to know is that Real estate land is currently a highly marketable commodity in Uganda’s economy and both small and large real estate developers can acquire land legally.
The new bill proposed by Minister Nabakooba is not the first to address issues in the real estate sector. Different processes and legislations have been put in place to improve the real estate sector in Uganda. Below are some laws that govern real estate in Uganda:
The Land Act
The Land Act of 1998 established a comprehensive land registration system in Uganda. This system is designed to provide secure and transparent land transactions and reduce land disputes. Under this system, all land in Uganda must be registered, and any transfer of ownership must be recorded with the government.
The land registration process in Uganda involves several steps. The first step is to obtain a certificate of title, which provides proof of ownership. The certificate of title contains information about the property, including the size, location, and any encumbrances. Once the certificate of title is obtained, the property can be transferred to a new owner through a sale or gift.
The land registration process can be complex and time-consuming, but it is essential to ensure that the transaction is legal and valid. Any mistakes in the registration process can result in disputes and legal issues down the line.
The Real Property Act of Uganda
This guides the real estate transactions in Uganda and outlines the rights, duties and liabilities of parties to a transaction. According to Article 26 of the Constitution of Uganda, every person has the right to own property individually or with others. While this suggests that women also have the same right to own property, it also recognises that husbands have the right to own property already registered in their name.
The Condominium Property Act, 2001 provide for the division of buildings into units and common property; provides for individual ownership of those units by issuance of certificates of title in relation to the units; provides for ownership of common property by proprietors of units as tenants in common; and provides for the use and management of the units and common property and for other connected matters.
The Mortgage Act, 2009 is the major law governing mortgages in Uganda defines a mortgage to include any charge or lien over repayment of an existing or future or contingent debt or other money’s worth or performance of an obligation and includes a second or subsequent mortgage and a third-party mortgage.
Survey Act, 1939 This Act concerns official survey of lands on order of the Commissioner of Lands or the Minister. It also establishes the Surveyors Licensing Board and provides for licensing of land surveyors.
Registration of Titles Act makes provision with respect to the registration of and certification and rectification of titles respecting land. It also provides rules relative to lease of land and other matters regarding land such as mortgage and legal actions regarding land and the bringing of land under this Act. Certificates of title shall be in one of the forms in the Third Schedule to this Act.
The Tenant and Landlord Act 2022 is meant to regulate the relationship between landlords and tenants. It will also reform and consolidate the law relating to the letting of premises and related responsibilities.
Types of land real estate ownership in Uganda
Customary Land
In some parts of Uganda’s real estate industry, a communal land ownership system exists, where certain groups in specific areas hold the land. The elders, clan leaders, or a designated administrative body typically govern the use of the land under this tenure. This customary tenure system is prevalent in the North, Eastern, North-east, North-west, and some parts of Western Uganda and covers over 70% of the country’s land.
In some cases, individuals may possess land with corresponding rights to it, but lack official land titles. According to Uganda Real Estate Laws, tenants may mark these specific areas with distinct and agreed-upon boundaries, often marked by ridges, trenches, and trees.
Freehold Land
The system allows for permanent land ownership and was established through an agreement between the Kingdoms and the British Government. Land in freehold was primarily given to church missionaries, academic institutions, and a small number of individuals. Under English law, Freehold is the main type of private land ownership and is recognized by the Land Act as one of the four ways to obtain access to land rights. This type of ownership includes perpetual registration of title and complete power of ownership, which allows for the use, abuse, and transfer of the land. The Registration of Titles Act governs real estate transactions with freehold land in Uganda, but it is not commonly used as a form of land tenure.
Mailo Land
Mailo tenure system is a type of land tenure mostly found in Buganda (Central region) and some parts of Western Uganda. The tenure system was established during the colonial period, where the colonial government granted freehold ownership to Buganda in return for political alliances under the 1900 Buganda Agreement. The system operates in a feudal manner and acknowledges tenants, commonly referred to as bibanja holders. The 1998 Land Act regulates the relationship between tenants and landlords. Mailo land is registered under the Registration of Titles Act, just like freehold land. All transactions related to Mailo land must be recorded in a register that is guaranteed by the state. If you own a Mailo land title, you have absolute ownership of that land. However, if the government needs the land for national interests, you may lose ownership but will be compensated for relocating peacefully.
Leasehold Land
In Uganda, there is a system where you can temporarily own land for 49 or 99 years by obtaining a lease from an individual, a local authority, or the government. This leasehold Real Estate process is based on a contract that allows both parties to set the terms and conditions for land use that work for them. A piece of land can be granted to someone by the owner of freehold, customary or Mailo, or by the Crown or Uganda Land Commission, for a specific duration of time. The person who receives the lease for the agreed period is entitled to a certificate of title.
Public Land
In Uganda, the government controls land ownership and can lease it to companies or individuals with specific terms and conditions. This type of land tenure is primarily for business and is usually located in urban areas like Kampala. Non-citizens can only obtain a leasehold interest in Ugandan land as the country’s land real estate belongs to its citizens.
Conclusion
Uganda real estate laws provide a comprehensive legal framework for property ownership, land tenure, and land registration. Understanding these laws is essential for anyone looking to invest in Uganda’s real estate sector. While there are some challenges in the country’s land tenure system, such as the ongoing conflict between customary and mailo systems, the government has implemented policies to address these issues and protect the rights of all landowner