UGANDA, Kampala | Real Muloodi News | Purchasing land in Uganda is simple if done correctly. Unfortunately, many people do not follow the proper processes when purchasing land and fall victim to fraud and/or exploitation. Land fraud is so prevalent in Uganda that “buying air” has become a common phrase to describe it.
Tinka, a poor girl, had saved her money working odd jobs in Kampala for a year and a half. She used her Shs2 million savings to pay to a company to facilitate her travel to Saudi Arabia to work as a housemaid.
While abroad, Tinka diligently sent her hard-earned money back home to her friend Morgana, whom she asked to purchase a plot of land on which to build rental homes. Morgana purchased a block of land in Ndeeba.
Tinka continued to labour to save enough for building. When she eventually returned with enough money to begin construction, she was astounded to learn that Morgana had accidentally purchased land in a wetland. She had bought the land without doing research.
Ten years ago, when Vincent Kirabo, a Kampala-based entrepreneur, returned from studying in the United Kingdom, he discovered that someone sold a portion of his land using forged paperwork. According to Reuters, his property had passed through the hands of multiple unsuspecting buyers. The long legal battle to regain his property is still underway.
Vincent, therefore, placed a “not for sale” sign on the perimeter wall on his other property, and hired security to guard it. The sign is to deter con artists from selling his land while he, the genuine owner, is away, as well as to warn unsuspecting buyers.
Fake land titles are one of the many tricks con artists use to dupe potential buyers, Geoffrey Tumusiime, a broker, tells Reuters.
Sometimes, con artists masquerade as elderly family members or pretend to be local officials to witness the transaction.
“He brings an old man and says this is my father. He makes an agreement, and when you come in, you find this person is not the owner,” Geoffrey Tumusiime explains.
According to Andrew Bashaija, the judge heading the land division at the High Court, fraud is “rampant.” Bashaija tells Reuters:
“Most of the cases we handle here, I can say 75 percent-plus, are fraud-related cases,”
Many individuals fall prey to such deceptions because of a lack of knowledge. Here is some advice to help you navigate these pitfalls when purchasing land in Uganda.
Visit the Site
According to Spectrum Properties, before buying land, visit the property and do a complete walk-through. Evaluate the topography, drainage, road networks, and land boundaries. The site tour also helps the buyer determine if the property suits his or her needs.
As part of the tour, ask about property type, the land tenure system, asking price, and legal ownership. Familiarizing with locals and local leaders in the area is often an excellent first step.
For low-lying land or areas that look swampy, contact the National Environment Management Authority (NEMA) for a report regarding the use of the property.
Appoint a Lawyer
A professional advocate is crucial at all stages of land purchase. A lawyer will advise you what to do at each step.
Land Title Search
You can use your lawyer to verify the authenticity of title of ownership in the Land Registry Office. You will need to obtain a photocopy of the land title deed from the seller to carry out the search. The Lands Office will provide a Search Report, which must show the names of the owner in question, plus other details as shown on the title.
It can take up to 3 days to get the Search Report. When purchasing from an incorporated company, first do a company registry search at the Registrar Of Companies to ensure that you are dealing with an appropriately incorporated company, and to identify shareholders and directors.
These searches are essential to verify the right property ownership, its genuineness, establish its existence plus identifying the conditions, caveats, pending rates or encumbrances on the title.
Meet and Negotiate with the Seller
Once you verify that land ownership is authentic, start the negotiation with the property owner. Where you cannot access the actual owner, the seller must hold a Powers of Attorney to authorise them to carry out the transaction on the owner’s behalf.
Disputes can sometimes arise when the landowner dies, and family members squabble over the inheritance. Michael Wanyeera, a local council chairperson in Kampala, dealt with one such incident.
“One side said they didn’t want the land sold, and the other one said we want to sell it,” he said. Eventually, some family members sold the land behind the others’ backs, Michael tells Reuters.
Onboard the Right Professionals
Besides your lawyer, a professional surveyor is a must. Verifying the property size before executing the transaction is essential. The surveyor will make precise land measurements, assure property boundaries, land topography, and give a survey report confirming the size and shape of the land. Additionally, your surveyor will verify measurements and other information against that shown on the title.
Having agreed to the terms, the seller’s lawyer will process the agreement, after which you only have to peruse and approve.
According to Spectrum Properties, a government valuer should also visit the site to prepare a requisite valuation report for Stamp Duty. This stamp duty acts as a registration fee for the property. The valuation aims to determine actual open market value at the transfer date.
Payment
Landowners should clear all pending matters concerning the land before transactions are complete. It’s their responsibility. Payments should flow through a law firm. A clearance certificate after that is essential.
Transfer Documents and Consent to transfer
According to spectrum properties, the buyer’s lawyer ought to prepare documents that are ready to share. The Uganda Commissioner of Lands then verifies these documents. Upon complete registration, lawful possession takes immediate effect.
There is hope on the horizon to combat the “buying air” issue. According to Dennis Obbo, a spokesperson for the Ministry of Lands, 752,000 land records entered the computerized land registry system have dramatically reduced fraud. Mr Obbo expects a year-end completion date to digitalize the entire system.
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