6 Important Things TO DO When Buying Land in Uganda
The best investment on earth is earth.” -Louis Glickman …but we all must guard ourselves against losses incurred in dealings with unscrupulous individuals through due diligence.
With the increased financial literacy and desire to improve individual net worth, many Ugandans are buying land wherever they can. Some of these cases end in joy, while others end in frustration. This article breaks down six simple things you must do for due diligence when buying land.
A. Conduct a Physical Inspection
The purpose of this inspection includes the following;
- To understand its location and whether it is suitable for what you want to use the land for
- To understand the terrain of the land with the advice of a surveyor.
- To establish the boundaries of the land to avoid errors in the acreage and future trespass cases.
- To establish who the neighbours are and whether they know the owner of the piece of land that you are interested in purchasing
- To confirm whether there are any legal and or Bonafide occupants on the land
- To confirm whether there are any land wrangles on the land
- To visit the Local Council Officials to confirm the history of ownership, any agreements made with Kibanja holders in respect to the land.
B. Appoint professionals to handle the transaction
i. Surveyor
Appoint a surveyor to confirm the acreage and terrain of the land. The surveyor should have a valid Practising Certificate. The surveyor should conduct a physical visit of the site.
ii. Lawyers
Appoint a lawyer to help you with checking whether there are any occupants on the land, conduct a search with the Registry of Lands and obtain a Search Report signed by the Commissioner. They should identify the Registered Proprietor, negotiate and draft the land sale agreement and ensure that the right parties sign the agreement.
Appoint a surveyor to confirm the acreage and terrain of the land. The surveyor should have a valid Practising Certificate. The surveyor should conduct a physical visit of the site.
ii. Lawyers
Appoint a lawyer to help you with checking whether there are any occupants on the land, conduct a search with the Registry of Lands and obtain a Search Report signed by the Commissioner. They should identify the Registered Proprietor, negotiate and draft the land sale agreement and ensure that the right parties sign the agreement.
C. Valuation of the Land
Stamp Duty payable upon purchase of land is not computed out of the purchase price of the land as agreed by the parties, but is instead assessed from the value given to the land by the Government Valuer. Any variations to the proposed assessment would make the transaction null and void.
D. Execute a Sales Agreement
Under the Contracts Act, 2010 – contracts above UGX 500,000/= should be in writing. If the person is illiterate, ensure that the signing meets the provisions of the Illiterates Protection Act Cap 78. Illiterate persons are incapable of entering into transaction if the document does not indicate that it was read to them in a language that they understand. Ensure that the Agreement contains the right acreage of land and avoid cases of mistaken belief.
E. Transfer of the Property
Ensure that you view the original identity card of the seller, obtain a photocopy of the national identification card and Tax Identification Number (TIN) in cases where the value of the land is above UGX 10M/=
F. Take possession of the land
Ensure that upon completion of the transaction, you take possession of the land, to avoid land grabbers using your land.
Due diligence in land transactions is something that of ignored can lead to a world of hurt that could have been avoided. Do not allow yourself to grow lax in any land transaction to prevent avoidable losses.
Contact DVIC Investments Ltd today. We have in place a team ready to help you navigate through that to-do list when buying land smoothly and make your dream of owning land a reality.
Reference: 6 Simple Must-Dos When Buying Land In Uganda by Brendah N. Mpanga
Due diligence in land transactions is something that of ignored can lead to a world of hurt that could have been avoided. Do not allow yourself to grow lax in any land transaction to prevent avoidable losses.
Contact DVIC Investments Ltd today. We have in place a team ready to help you navigate through that to-do list when buying land smoothly and make your dream of owning land a reality.
Reference: 6 Simple Must-Dos When Buying Land In Uganda by Brendah N. Mpanga
