You just bought a piece of land in Uganda. So, what next?
Here is a step-by-step guide to registering and transferring your plot in Uganda:
INITIATE A SEARCH AND CONSENT FORM REQUEST. The Ministry of Lands provides the consent form, allowing you to fill in the details of the parcel you intend to search and register.
Consequently, the Registry offers a Bank Advice Form, which facilitates the financial transaction for your search.
The Bank Advice Form also acts as the determinant of your tax requirements and execution of associated payments.
SETTLE THE SEARCH FEE. With the Bank Advice Form, you can pay your search fee at the bank. Upon payment, you should reserve the transaction receipts as you must present them at the Registry for your search to be executed.
PROGRESS WITH THE SEARCH AND DRAFT A TRANSFER AGREEMENT. T he Ministry of Land is responsible for conducting the search. Once done, you can obtain a consent form for the title transfer.
Additionally, it’s best practice to draft a transfer agreement with a lawyer at this point. It helps streamline the transfer process and saves you from any issues arising in the future.
EVALUATE THE VALUE OF YOUR PARCEL. The Chief Government Valuers is responsible for evaluating the value of your land. By determining the property’s value, you can calculate the Stamp fee, usually 1% of the property value.
OBTAIN A CLEARANCE FORM AND THE STAMP DUTY ASSESSMENT. Once the property value is approved, the documentation is forwarded to the URA desk, and you are issued with an assessment form for Stamp duty.
If your land value exceeds 50 Million(UGX), you are required to provide a tax clearance form indicating the source of your income for tax compliance.
Besides, the Tax Identification Number (TIN) is required for all land transfers involving Ugandan citizens.
PAY THE STAMP DUTY. Payment of the Stamp fee is exclusively made at the designated commercial bank. Following your payment, the bank informs URA of the completion of your transaction.
A mandatory 3-working-day reconciliation is then conducted between the bank and the Uganda Revenue Authority.
APPROVAL OF LAND TRANSFER BY KAMPALA LAND BOARD. After the reconciliation between the tax authority and the bank, your transfer documentation is submitted to Kampala Land Board for approval.
The receipts for the payment of consent forms are also required.
If your land transfer involves a corporate entity, you need special authorization from the Land Board, which costs sh. 20000.
ASSESSING REGISTRATION FEES. Your sales agreement is sent to Kampala Capital City Authority to confirm the registration fee.
Additionally, you are provided an assessment form with details to pay the registration fee.
The documents required at this stage include a receipt confirming payment of the stamp duty, a sales agreement, and the company’s decision to buy and sell.
VERIFYING THE LAND TRANSFER AT THE REGISTRY.
The transfer documents are stored at the Land Registry. They are then forwarded to the Registrar for formal processing of the transaction.
Once processed, it is sent to the land registration commissioner for verification.
APPROVING THE REGISTRY AND TRANSFER. The registrar nullifies the initial landowner and replaces the entry with the new owner. Passport photos of both the buyer and seller are provided to mark an end to the procedure.
There you have it. Your new plot is successfully registered, and the land title is transferred to your name.
FREQUENTLY ASKED QUESTIONS ABOUT AJABX TOKENIZATION (AJABX TK)
Ajabx Real Estate Investment Trust (AREIT)
Ajabx consult co.ltd was incorporated in 2021 under the constitution of Uganda. With a mission of "providing Quality affordable housing units" across the country. And with a vision of "improving standards of living and financial wellbeing of our stakeholders" through availing investment opportunities within the real estate sector.