A Buyer Due-Diligence Manual (2025)

Uganda Land Tenure + Condominium Ownership: A Buyer Due-Diligence Manual (2025)

1) What you can legally own

Uganda recognises four tenure systems: customary, freehold, mailo, and leasehold. Only citizens can own freehold or mailo; non-citizens may only acquire leases (up to 99 years).

Foreign buyers

Leasehold only. No freehold or mailo. Max term 99 years. Applies to individuals and companies with foreign controlling interest.
Constitutional basis: land vests in citizens; non-citizens acquire leases per law.

Mailo and kibanja (occupants)

Mailo often has protected occupants (lawful or bona fide “kibanja” tenants) who have security of occupancy and transaction rights, subject to landlord consent. Always verify occupant claims and ground rent status.

Spousal consent

Family land cannot be sold, leased, or mortgaged without the spouse’s prior written consent. Build this check into every deal.

2) Condominium basics you must verify

Uganda’s Condominium Property Act, 2001 creates unit titles, common property, an owners’ corporation, and by-laws. Units may sit on mailo, freehold, or leasehold land; your title is for the unit, plus a share in common property. Confirm registration of the deed of declaration and condominium plan with the Registrar of Titles.

Key documents to see:

Registered Condominium Plan and Deed of Declaration.
Unit Title draft or issued CoT.
By-laws and unit factors for service-charge apportionment.
Any amendment regulations applied (2002, 2012).

3) Taxes, fees, and government valuations

Stamp duty on transfers: 1.5% of value as assessed by the Chief Government Valuer (CGV). Leases: 1%. Mortgage: 0.5%. Use the CGV assessment for duty computation.
VAT: 18% on taxable supplies. Residential sales by non-VAT-registered sellers are typically exempt; developer sales may trigger VAT. Get a written tax position from your adviser.
Capital gains: taxed as business income (corporate 30%; individuals at marginal rates). Plan for this on exits.
Withholding tax: if you buy a business asset, buyer must withhold 6% from the seller. Clarify where the unit is held as trading stock by a company.

4) Title searches that actually de-risk the deal

Use Uganda National Land Information System (UgNLIS) for searches, then backstop with physical file checks where needed. Typical search fee ≈ UGX 10,000, with a formal search letter issued.

Do both:

UgNLIS e-search: confirm proprietor, tenure, encumbrances, caveats, parcel attributes.

Physical registry check: retrieve registry copy and obtain a registrar-signed search letter.

If any risk emerges, lodge a caveat under the Registration of Titles Act, s.139 to freeze dealings pending resolution.

5) Developer and project compliance (don’t skip)

Ask for copies and numbers you can verify:

Building Control Act compliance: building permit issued by the Building Committee and an occupation permitbefore move-in.
EIA/ESIA: for qualifying projects, insist on the NEMA Certificate of Approval under the 2020 ESIA Regulations.
Utilities and safety: fire alarm commissioning, lift certification, generator tests, potable water tests; keep OEM certificates on file. (Align with Building Control Regulations.)

6) End-to-end transaction flow (buyer’s checklist)

A. Pre-contract

Identity and KYC for seller/developer; if a company, retrieve URSB file.
UgNLIS search + physical search letter; check encumbrances/caveats.
Confirm tenure and, if mailo, check for kibanja occupants and ground-rent status.
Obtain spouse consent if land is family land.
Verify condo plan + declaration registration; read by-laws and unit factor.
Verify permits/EIA and construction stage certifications.

B. Contracting

Signed Sale Agreement referencing the registered condo documents.
Escrow or stakeholder account terms for deposits.
Long-stop date, defect liability, force majeure, currency and FX terms.
Snagging and completion lists as schedules.

C. Transfer and registration

Submit to CGV for valuation and stamp-duty assessment. Pay duty and registration fees.
Obtain consents where applicable (e.g., controlling authority for leases).
Lodge transfer for unit title issuance; collect <strong>occupation permit</strong> before handover.

D. Post-completion

Register any mortgage.
Join the owners’ corporation; get by-laws, budgets, and service-charge schedule.
Keep a compliance file: permits, tests, warranties, EIA certificate.

7) Contract clause examples you can adapt

Long-Stop Date

“If registration of the Transfer and issuance of the Certificate of Title to the Unit has not completed by [date] for reasons not attributable to the Buyer, the Buyer may terminate and receive a full refund of all sums paid, less any agreed escrow costs.”

Defects Liability

“The Developer shall remedy, at its cost, any latent or patent defects notified within 12 months of practical completion, within 30 days of notice, failing which the Buyer may rectify and recover reasonable costs.”

Change Control

“No material variation to unit area, spec, or common-area facilities shall be effected without Buyer’s written consent; where variation reduces value, the Purchase Price shall adjust pro-rata or Buyer may rescind.”

Spousal Consent Warranty

“The Seller warrants that the land is not family land or, if it is, that valid spousal consent per Land Act s.39 is annexed; breach is a fundamental breach.”

Foreign Ownership Acknowledgment

“Buyer acknowledges title will be leasehold under Land Act s.40; term: [x] years; renewals as allowed by law.”

8) Diaspora path (power of attorney, remote deal)

Execute a Power of Attorney before a notary or consular officer; file it with the land registry.
Use escrow with clear milestones tied to permits and CGV assessment.
Require digital copies of valuation, duty payment, and registration receipts; confirm status on UgNLIS.

9) Red flags that kill value

Condo not yet created in law (no registered plan/declaration).
Missing building or occupation permits.
Mailo with unresolved kibanja rights.
Duty computed on sale price instead of CGV value.
Foreign buyer offered freehold/mailo. Decline.

Sources

Land Act Cap.227: tenure, spousal consent, foreign ownership.
Constitution Art.237: land vests in citizens; non-citizens acquire leases.
Condominium Property Act 2001 and Regulations.
UgNLIS: official land-information system and search process.
Building Control Act 2013 and Regulations 2020.
ESIA Regulations 2020: NEMA certificate requirement.
Stamp duty and CGV assessment.
Caveats under the Registration of Titles Act.