What does it take to buy land in Uganda?
Because of some unscrupulous land agents and dealers, many Ugandans get scared when it comes to buying land, especially for development.
Indeed many have been conned of their hard-earned money and on several occasions by people they had a lot of trust and confidence in.
It is that confidence and, in many cases, lack of knowledge of procedure in land acquisition that has led to many lose their money yet it would save them a lot of time and hassle had they put their trust in professional real estate agents.
One valuable asset that investors do not have is time. Therefore the procedure of visiting the land in question, ascertaining the authenticity of the papers/documents pertaining to the land, searches at land offices and all the other details will turn out to be cumbersome to the buyer. Yet if not followed to the detail something could go wrong along the way, hence loss of money in the process.
Site visit
Once a buyer has expressed interest is land (or any other property) they must make a site visit to see the land physically. This will help the buyer to check whether the land in question suits what they intend to do on it. After the visit, the buyer or their agent will have got a good picture if indeed they should proceed with the process of acquiring it.
Search at the area land offices
The next step is to visit the area land offices to make a search of the land title and also check if there are no encumbrances on the land in interest. The search will show that the said land is of that Block Number and Plot Number as indicated by the seller and the ownership tallies with what the seller is indicating.
An own search can also be conducted though this is unofficial. It avails chance to talk/chat with the local leaders and neighbors about the said land. The buyer would get first-hand information about the land.
Negotiations
After all the above has been proved to be in agreement, round table discussions between the seller and buyer, or their appointed agents can begin to agree on terms to be put in the sales agreement. These may include the price of the land or property, the down payment, the time when the buyer will start using their acquired property and the mode of payment.
Professional surveyor
At this stage a surveyor will be needed to open up the boundaries of the land and also ascertain the actual size. This step is necessary especially for the buyer because it spells out the size of the land physically as opposed to just hearsay from the seller and neighbors.
Sales agreement
A sales agreement can be drafted at this stage and a down payment can be made pending other modalities.
Government valuer (property evaluation)
When the seller set their price, the value may not necessarily be the same as that perceived by government in that part of the country and at that particular time. Yet before transfer forms are processed, the property in question must pay stamp duty, a percentage based on the official value of the property. The current rate is 1.5% of the value as determined by the Government valuer.
Therefore the Government Valuer will have to be contacted to ascertain the value of the property to also determine the stamp duty to be paid.
Transfer of rights - from Registered Proprietor (RP) to new owner
When all that has been done, the land transfer forms (from seller to buyer) will be processed at the lands registry. It is highly advisable that professional legal minds are engaged in the whole process.
Stamp duty
After the stamp duty has been paid and the Commissioner of Lands is satisfied that all the processes have duly been adhered to, he/she will authorize the registration of the title in the new names (buyer).
The final activity will only be for the title to be handed over to the new proprietor.