TRANSFER OF A PROPERTY BY WAY OF SALE

Published by Flora Erasto

Sale of land in Tanzania consists of a complicated yet vital procedure that must be adhered for a successful legal transfer to occur. With all lands vested under the President, and individuals only granted the interest to the land. It is crucial for procedure to be followed to enable smooth change in ownership of these interests in land. These steps include;

OFFICIAL SEARCH. (Section 97, Cap 334)

This is the first and important step to be taken by the buyer of a property before signing of transfer documents. The purpose of conducting official search before embarking in the process of transfer is to identify the validity of the property and get all the subsisting memorials appearing in the land registry. This means that, the applicant of the official search will be in a position of not only  identifying the current owner of the property and but also identify if there are any encumbrances such as mortgage, leases, court injunction, caveat, charges from the government. This is conducted at the Land Registry.

VALUATION REPORT.

Valuation is conducted for the purposes of knowing the current market value of a property. This task is done by a registered valuer who will determine and prepare a report showing the actual price of the landed property. The valuation report must be signed by the chief valuer and endorsed with a seal of a chief valuer. The valuation report is to contain important details like the particulars of the seller and buyer, location of a property,  tenure of right of occupancy and  current price (market value) of the land.

PAYMENT OF LAND RENT

It is a requirement of the law that pursuant to section 33 of Cap 113, the Land Act, a holder of the right of occupancy must pay an annual rent for the right of occupancy. Rent shall be paid to the Commissioner or, an authorized officer at the Office of the Commissioner for lands or any other place which the Commissioner determines, or which may be prescribed. In determining the amount of rent, the commissioner shall consider the area of the land and the land use. Transfer of Land can not be done if land rent has not been paid. This                  

PREPARATION AND DRAFTING OF TRANSFER DOCUMENTS.

The following documents must be prepared,

  • Contract of Disposition of Right of Occupancy (sale agreement)
  • Transfer Deed (Landform No. 35)
  • Notification of disposition of Right of Occupancy (Landform No. 29)
  • Application for Approval (Landform No. 39)

 

PAYMENT OF CAPITAL GAIN

It is governed by the Income Tax Act requiring a person who derives a gain from realization of interest in land to pay tax. The main office involved here is Tanzania Revenue Authority. The purchaser of the landed property must ensure that, Capital Gain Tax has been paid by the vendor. While paying Capital Gain, the vendor has to fill and sign a declaration form. After filling the said form, then it should be taken to TRA accompanied with the certified copies of the following documents, certificate of occupancy, valuation report, Landform no 33, Sale agreement, Landform no 35, Original EFD receipt, Landform no 35, Original EFD receipt, Landform no. 30 & 29

SUBMIT THE DOCUMENTS TO THE LAND REGISTRY FOR REGISTRATION AND TRANSFER

This is the last step in the process of transfer of right of occupancy. Under this step, a lawyer or seller submit all the original documents of transfer including the original certificate of title to the office of registrar of title for registration After been satisfied the registrar shall register the buyer as the new owner of Certificate of Tittle.