Uganda Real Estate Laws
If you're planning to Investment in Africa, Uganda Real Estate is one of those safe investment opportunities you should consider. Over the past 20 years the value of the Real Estates Industry in Uganda has grown steadily and this trend is expected remain so for some good time.
How long this Real Estates bubble will last..? I don't know...!
But my guess is that it can last long enough for you to start and operate a profitable Real Estates Business in Africa.
This section of The Real Estate Guide outlines for you some of the most relevant Uganda Laws governing Real Estates Transactions.
Acquiring Land Real Estate in Uganda
Currently land Real Estate is one of the most marketable commodities in the Uganda economy.
Whether you want to start small or big in Uganda Real Estates development, you can always find Land to cut into small portions and sell to your clients.
Running your Uganda Real Estate development business may however become difficult at some point in time, especially if you're planning to buy a property within the highly marketable areas of Kampala and its surroundings.
Your first hurdle will be to figure out how you will deal with the squatters on your Land real estate without jeopardizing your profitability.
Usually the best way is to sit down with your tenants and involve them in your project rather than fight them.
Use the information in this guide to formulate a strategy on how you will work with your tenants to obtain a win-win deal in your Uganda Real Estate business.
Your next hurdle is to obtain a genuine certificate of title from the person who has sold you the Land Real Estate before you sink more money into developing it.
Never consider your Uganda Real Estate Transaction a done deal without a genuine certificate of title in your hands.
Guiding documents in Uganda Real Estates Transactions.
Types of Land Real Estate Ownership in Uganda.
The underling principle is that Land Real Estate in Uganda belongs to Ugandan citizens.
Therefore, if you are not a Ugandan citizen, you can only acquire Leasehold interest in Uganda Land.
How your Company can own Land Real Estates in Uganda
Your company can own freehold land if it is Ugandan, but not when it is foreign.
Your company will be considered foreign if the controlling interest lies with Non Ugandans.
Family Land is where:
You cannot purchase Family Land Real Estate from an individual without prior consent with his/her spouse, because the sale shall be considered void.
However, you can claim your purchase from the purported seller if your Real Estate transaction is canceled.
Land Real Estate Owners Vs Tenants.
Before you buy a Uganda Land Real Estate, you need to find out the occupancy status of the tenants on that land.
This is a critical due diligence step in your land real estate transaction because it will contribute to the valuation of the land you intend to buy.
The obvious buying trend is that a plot of land with many tenants should cost you less than a similar Uganda Real Estate with fewer tenants.
The status of occupancy becomes of great importance when you want to utilize your plot of land and yet you have to compensate your tenants first.
Land which is occupied by many tenants protected by law is likely to cost you more in terms of compensation to the tenants than a similar plot of land with unprotected tenants.
A tenant by occupancy means a lawful or bonafide occupant according to the land act.
Who is a Bonafide Occupant in Uganda Real Estate Transactions?
Who is a lawful Occupant in Uganda Real Estate Transactions?
If you occupy land on basis of a license by the owner, you’re not a lawful or bonafide occupant.
If you acquire interest from a bonafide occupant you become a bonafide occupant.
You cannot become a bonafide occupant on unregistered land.
How should you treat the tenants on your Land Real Estate?
If your tenant fails to pay you the approved rent for over 2 years , you need to serve her a notice to show cause why you should not terminate her tenancy.
If your rent is not paid within one year after the notice , you should refer the matter to the land tribunal.
If you want to sell your land real estate, you are obligated by the Uganda law to give your tenant the first right of opportunity to buy.
Your tenant by occupancy can apply to you (the registered owner) for a certificate of occupancy.
A tenant by occupancy can create a new interest in the land but must obtain the consent of the land owner.
If your tenant makes a sale of your land without your consent, that real estate transaction is considered void by the Uganda Laws.
Find more info about acquiring Uganda Real Estate Property.
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