UGANDA, Naguru | RealMuloodi news | Purchasing a Kibanja on Kabaka’s land is a viable option for those who want to build on small budgets, and those starting real estate businesses.
However, fraud in these kinds of transactions is very high and therefore discouraging. When you decide to buy a Kibanja, you must be very careful and take precautions to avoid being duped.
Andrew Kansiime purchased one third of an acre of land in Naguru in 1994, which he occupied and used for sustenance farming. He had followed the proper procedures in registering his customary interest and was a bona fide Kibanja holder of this initial land.
In 1999, a neighbour sold an acre of land to Mr. Kansiime for Shs.200,000/= Unfortunately, this transaction occurred without the permission of anyone. Then in 2007, another neighbour sold Mr. Kansiime a further one-third of an acre. This transaction also occurred without permission, or being registered with the Uganda Land Commission (ULC).
ULC subsequently received various applications for leases on the land Mr. Kansiime had aquired, which were granted and registered in different names. Mr. Kansiime, believing he was the rightful owner, took the new tenants and ULC to court. However, because he was occupying the land without the content of the registered owner, he learned he was in fact illegally in occupation, which inevitably rendered him a trespasser on the land he believed he owned.
Isaac Mpanga, a renowned lawyer and a member of Buganda Lukiiko, notes that you need to do a background check before acquiring a plot on Kabaka’s land.
Once you identify the piece of land you want to buy, get the name of the area chairperson, the name of the seller, and any previous owner and other details.
The chairperson acts as a witness during the purchase. In addition, the chairperson should make a separate statement of what he knows about land ownership.
Most of the time, purchase agreements include the size of the plot, and the seller, buyer, witness, payment without covering or protecting the buyer.
Be equipped with a better agreement. Always include a clause in the understanding of what should happen if any act of fraud is determined.
Under the changes to the Land Act, a “Kibanja” holder is supposed to get permission from the landlord before selling the land.
The seller must introduce the buyer to the landlord to create an awareness of a new occupant, and the landlord signs the agreement.
Mpanga, notes that all those interested in acquiring Kibanja (plots) on Buganda Kingdom managed land must double-check with the regional Buganda Land Board (BLB) office or be willing to register after presenting the sales agreement.
The system of leasehold and Kibanja have conditions that one must put into consideration. Ground rent, commonly known as Busuulu, is the most prevalent among all, and it involves rent payable by a tenant on Kabaka’s land as provided by the law.
Mpanga reveals that the amendment to Article 31 of the Land Act provides that a tenant must pay annual ground rent to the property owner as determined by different district land boards.
The official Busuulu rates set by the government are; a kibanja holder in a city pays USh50,000, municipalities USh40,000, in the town councils USh30,000, town boards USh20,000 and the villages USh5,000 per year.
Paying ground rent provides security for your property against land-grabbing; your payments stand as further proof you are the legitimate Kibanja owner of the property.
According to information on the BLB website, one pays USh1,600,000 to cater for registration and survey of the kibanja.
Per the Buganda Land Board’s official website, BLB gives the lease offer to the applicant. The lease defines its duration, premium and ground rent. The premium paid depends on the size, location and capital value of the land.
Mpanga reveals that anyone on the Kingdom managed land has to get a lease title. The lease title has an automatic renewal clause. The Buganda lease ranges from 49 to 99 years, depending on the wish of the applicant.
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