Purchase of Registered Land In Tanzania- PART A

SOMA MAKALA HII KWA KISWAHILI

INTRODUCTION

Land is an important resource. We might be in a position to buy land at certain times in our life for purposes of residence, commerce, or farming, just to mention a few. It is therefore crucial to understand the mechanics of buying land.

The underlying principle in purchasing land is that of “Let the Buyer Beware”. This implies that the buyer of land should exercise great care in the purchase process. Is not land the abode of conflicts nowadays?

It is worth noting that there is “registered land” and “unregistered land”.

Registered land is the land which is planned, surveyed, and recorded in the official register of the government (in the Registrar of Titles’ office). Vice versa is true for unregistered land.

In this article we have explained the steps and important things to consider during the purchase of registered land in Tanzania.

The following are the major steps in purchasing registered land;

1. Thorough inspection of the plot
2. Preparation and signing of the legal documents
3. Making payment to the seller

FIRST STEP

THOROUGH INSPECTION OF THE PLOT

In this step, the buyer should consider to inspect two types of information;
i) Legal Information
ii) Physical Information of the Plot

i) LEGAL INFORMATION

These information are used to understand the legal status of the plot of land. The aim is to test whether the plot of land is owned legally or comply with the requirements of the law.

In executing the inspection task, the prospective buyer should first ask the seller, thereafter he/she should request the seller to provide the copy of the Certificate of Title in order to validate the information from the land office by requesting an Official Search.

The buyer must inspect the following;

a) Legal owner(s) of the plot

As a prospective buyer, you must make an effort to know the true and legal owner of the land to be sold. The land may be under individual ownership, corporate ownership, or joint ownership (matrimonial property or inheritance property). Therefore, showing up of one owner should not stop the prospective buyer from probing on the likeability of existence of another owner.

b) History of the plot

The prospective buyer should understand the means by which the current owner acquired the subject land (either by gift, purchase, inheritance, or allocation). This is the pertinent information as it enables the buyer to fully understand the plot and substantially prevent conflicts in the future.

c) Mortgage

The prospective buyer has to ask the seller if the subject land has been secured for a loan, and whether it has been discharged or not.

d) Payment of land rent

Here, the buyer should ask for the detailed information on land rent. For example, what is the amount of land rent? When was the last time the land rent was paid? Where are the receipts?

e) Lease

The seller might have leased the subject land and may not disclose that to the buyer deliberately. It is the duty of the buyer to probe for this piece of information. It will help the buyer to make wise decision whether to buy or not, and ultimately the conflicts in the future will be avoided.

f) Caveat

A caveat is a statutory notice preventing the taking of any action  in relation to the right of occupancy without first informing the person who gave the notice. The caveat is lodged by a person who has a priority interest in that property such as a husband or wife (in case of matrimonial property).

In order to continue with other proceeds of sale, the prospective buyer should be satisfied that the subject land has no caveat.

g) Any existing conflicts

Land conflicts are prevalent nowadays. The conflicts range from boundary conflicts, ownership conflicts (for example matrimonial property), inheritance conflicts, conflicts with authorities, to multiple sales/allocations of land.

Therefore, the buyer should practise due diligence in inspecting the existence of conflicts in the subject land.

What are the other legal information to be considered by the buyer before purchasing land?

The second part of this article we will explain other legal information, physical information of the plot, and the remaining steps in purchasing registered land.

Please consider reading the second part of the article. 

Thank you and welcome!

The Aliland Team