Sabiiti Herbert

Just like I have shared with you before, I subscribe to a number of whats app groups and from time to time, I cross roads with stories and insights. Yesterday in particular, I read a comment on one of them that “land in Uganda seemed to be cursed because land dealers end up with issues”. Even then, Bold is mine to say Real Estate business remains one of the best solid shots on investments across the global divide, it’s only a question of how you manage your cash flows and risk mitigation.

I’ve realized Ugandans purchase land but do not complete transactions. For titled land, completion of the transaction is making 100% payment to the seller. The seller gives you all necessary documentation for land transfers. These documents include National ID, passport size photo, signed transfer forms written on thus “THE REGISTRATION OF TITLES ACT” and “APPLICATION FOR CONSENT TRANSFER” ( this is submitted in duplicate)

Surprisingly, people receive these transfer forms yet never transfer the title(s) into their names. Have a look at the risks associated with this laxity;

1. Land value can only keep appreciating, consequently you end up paying higher stamp duty if you delay your transfers, this duty is value correlated.

2. Land policies may/could change, these forms you’re keeping could become obsolete, imagine starting a search for the sellers afresh or what if the seller passed on, what happens? The hustle with estate administrators then begins.

3. Tax policies change, we used to pay 1% of market value for stamp duty but now it is at 1.5% it could go higher sometime some day. Please transfer your title today.

4. When a land title is lost, the owner applies for special title, if your land is not transferred to your names, even if you have an original title the seller who could be a fraudster can apply for a special title, goes ahead to mortgage it and fails to pay the loan and then you unfortunately find self sharing ownership with a financial institution. No one should go into this kind depression.

5. In case you have a financial need, some financial institutions require you to first transfer your title. It could be costly if you let bank lawyers do the transfers on your behalf.

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In case you’re into the business of lending, whether as a bank or SACCO, I advise you not to keep un transferred titles however much you’re in possession of those signed land transfer forms.

God bless you as you invest in Real Estate. sabiiti10@gmail.com