Introduction:

As you may know by now, Uganda follows the “Torrens System” of land registration. The Torrens system was first introduced in Uganda by the Registration of Titles Act.

It automatically applies to all Mailo land included in any final Mailo certificate and all lands alienated in freehold or leasehold and any transaction relating to such land. It is so supreme; it prevails over any other inconsistent law dealing with registered land. The system revolves around a centralised “Register Book.” This Register book contains all information and particulars relating to each registered land.

In 2013, the President of Uganda, HE Yoweri Kaguta Museveni, in a bid to reduce the enormous fraudulent land transactions taking place in Uganda, commissioned the National Land Information centre. The digitisation of the land registry was kickstarted. The process to move files from the manual form into a computerised system called the Uganda National Land Information Systemwas kick-started.

It is not rare to conduct a search on behalf of a client only to find that ownership in the system still indicates the land’s previous owners. In such cases, we are often instructed to formally write and follow up the updating process with the Ministry of Lands registry. Ensure you conduct a search on all your properties at least twice a year to confirm your ownership and to ensure no caveats or easements have been registered thereon.

The crux of this article though was about what the law provided in regard to conducting due diligence prior to land purchase.

Section 56 of the Registration of Titles Act, Cap 240 of the Laws of Uganda provided that the certificate of title shall be conclusive evidence of all particulars and endorsements thereon, and that the person named in the certificate as the proprietor is possessed of the estate or interest described. This largely meant that while purchasing land, the interested buyer only needed to file with the Registrar a – 01 formal search application and on the basis of the search report, would be comforted in the knowledge that they would be protected if they went ahead to transact on the basis of the results of the search report.

Unfortunately, the scope of carrying out due diligence continues to be expanded day by day, which makes doing business is Uganda and buying land in Uganda even more complicated. Not only is an interested buyer required carrying out a search and obtaining an official search report, one is one required to conduct a physical site inspection, open boundaries, involve local authorities and ensure beyond measure of the certainty of ownership of the land.

The ruling of Bageire vs Ausi Matovu (CACA No. 7 of 1996) threw the spanner in the works. The judge emphasised that “Lands (sic) are not vegetables that are bought from unknown sellers. Lands are valuable properties and buyers are expected to make thorough investigations; not only of the land but of the sellers before purchase.”
Therefore, a mere search at the registry is not enough to constitute due diligence, the standards of the due diligence have been raised, so land purchasers must meet the standard.