Real Estate Procedures: The Process of Sale and Purchase of Land in Tanzania
Real Estate Procedures: The Process of Sale and Purchase of Land in Tanzania
IN TANZANIA.
ToC The Process of Sale and
TABLE OF CONTENTS
Purchase of LAND IN
TANZANIA
3.0 INTRODUCTION
3.1 NATURE OF TITLE TO LAND
3.2 PRE-CONTRACT INVESTIGATION
OF TITLE
3.3 VENDOR’S DUTY OF DISCLOSURE
3.4 SALE OF UNIT TITLE PROPERTIES
3.5 REGAINING POSSESSION BY THE
VENDOR
3.6 CONCLUSION
INVESTIGATION OF – Proving a good title is relatively simple with the system of land registration. The purchaser (or his
lawyer) can investigate the title by searching the land register. The land register will disclose the
TITLE registered encumbrances on a search by the purchaser. Thus, registered titles make the whole process
simpler.
– A good title is one that is free from interests that may adversely affect the use and enjoyment of the
property. It has to be in conformity with the client’s instructions. The lawyer must ensure that no
deficiencies in title, which may reduce the property’s value or adversely affect the client, exist. In case
there is an enforceable covenant that has been breached, the seller has to be asked to remedy the
breach immediately.
– The purchaser’s lawyer must check the entries and other documents referred to in the register and
compare them against the information given in the draft contract/questionnaire. The search will help to
INVESTIGATION OF TITLE reveal the position of the title. With a search report, the purchaser can know whether the land is
encumbered or not, or if the vendor is the registered owner of the land.
– Official searches can be carried out at different stages of conveyancing in order to confirm the validity
REGISTERED TITLE of the title at the time of signing the contract. It is also advisable to confirm the class of use for the
property. This may include considering the use group and class referred in the certificate of title against
REGISTRY OF TITLES the Urban Planning (Use Groups and Use Classes) Regulations, 2018, or as may be amended to
ensure they match.
UNREGISTERED TITLES UNREGISTERED TITLES
– title investigation for unregistered land is difficult. It can, however, be done by showing the purchaser
REQUISITIONS & the records of past transactions in the land e.g. sales, grants of probate, or the events of death. The aim
of exhibiting the records is to persuade the purchaser that the vendor has a valid title to the land.
QUESTIONAIRES TO THE REQUISITIONS & QUESTIONNAIRES TO SELLER
– Due to the increasing need to have clear and adequate information on the property, requisitions
SELLER (requests for information) need to be done when investigating the title. It is advisable that
requisitions are done prior to the exchange of contracts. Requisitions include the purposeful desk
review/ interview of the particulars of the property to establish the veracity of the vendor and the
subject matter of disposition (See Table 1 hereunder).
– Such requisition, if done, is not a hindrance to further enquiries, or clarification on the preliminary
information. As shall be seen later, such request for information should go hand in hand with official
searches, except for unregistered land.
PRE-CONTRACT by
Vendor
Completion
i. Clarify that on completion, the vendor must produce receipts for the last payments of outgoings
which he either claims reimbursement of an advance payment or from which arrears could be
recovered.
ii. Seek to know where and when completion will take place.
iii. Seek to know the preferred mode of payment and if the purchaser can remit the completion money
directly to vendor’s bank account or not. If vendor accepts bank payment, get particulars of the
account, name and branch of the bank.
• PURCHASERS’ Title Documents - Unregistered Land
REQUISITIONS & i.
ii.
iii.
Seek to know what documents will be handed over to the purchaser on completion.
Seek to know if there are any documents that will not be handed over and why.
Indicate that documents of title will remain to be examined and the right to raise further requisitions which may
QUESTIONNAIRE
arise upon examination of replies or knowledge of new facts is reserved.
Mortgages
i. Indicate that all subsisting mortgages, must be discharged on or before completion.
ii. In each of the subsisting mortgage seek to know if:
iii. Vacant receipt, discharge of registered mortgage or consent to dealing will entitle the purchaser to take the property will be free of the mortgage on
completion.
iv. There will be any suggested terms of undertaking.
Possession
i. Confirm if vacant possession will be given on completion and that every person in possession of the property or any part of it will
vacate on or before completion.
ii. Seek to know the kind of arrangements that will be made to hand over the keys to the purchasers.
iii. Highlight that, if the property is leased, the vendor must on completion hand over vacant possession or provide a written authority
for each tenant to pay all future rent to the purchaser or at his direction.
• ITS JURISPRUDENCE
Covenants
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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SALE AGREE…
THE LAYOUT
NATURE OF DISPOSITION
(TITLE)
DATE: When the Contract is made as
between the parties (to be inserted
upon exchange).
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■ Names & Addresses
■ Capacity to Contract
■ NATURAL PERSONS
– CITIZEN OF TANZANIA
– AGE OF MAJORITY
– FREE CONSENT
– NOT UNDISCHARGED BANKRUPT
– OF SOUND MIND [non compos mentis] Ss.10-12
PARTIES ■
Cap. 345
CORPORATE PERSONS
– COMPANY [Cap. 212]
■ BRELA REGISTERED
■ MAJORITY MEMBERS MUST BE
CITIZENS
■ WHERE MAJORITY MEMBERS ARE NON
-CITIZENS TO BE TREATED AS FOREIGN
COMPANY…S 19 & 25LA
■ CONSENT SUBJECT TO MEMARTS…who
has power?
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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Parties….
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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LEGAL PHYSICAL
DESCRIPTION DESCRIPTION
MAPS
GRANTED RIGHT OF SURVEY MAPS
OCCUPANCY [Usually Attached
TIME
to the Certificate of
CLASSIFICATION Occupancy]
S 32 LA UNREGISTERED-
SKETCH MAPS
PLANNING AREA
SUBJECT
USE
CLASSIFICATION REFERENCES
PROPERTY/ASSETS
GN 77/2001
MATTER…
INVENTORY
Regls. Immovable [Valuation
CUSTOMARY RIGHT
Report]
OF OCCUPANCY S. 29. Chattels [Valuation
Report
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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Chattels
If any chattels are to be
included in sale,
have a separate list of them
SUBJECT
which can be attached to the
final form of contract (e.g., a
copy of fixtures, fittings and
MATTER…
contents form).
A clause could read:
‘The chattels on the
Property and set out
on the attached list are
included in the sale.’
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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■ SALE PRICE
– OTHER VALUABLE
CONSIDERATION [e.g. Exchange
of Properties]
– -How it shall be paid. Lumpsum,
CONSIDERATION Installment –how many, when each
installment?
…
■ GIFTS
– MUTUAL LOVE & AFFECTION
– DEED OF GIFT required instead
of Agreement for Sale [CGT]
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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■ CONDITIONS
PRECEDENT/SUBSEQUENT
– If your client must satisfy the
condition, draft it so that the client
can satisfy it easily.
TERMS AND – If the other party must satisfy the
condition, consider how difficult it
CONDITIONS should be in the context of the
transaction.
– SUBJECT TO SECURING LOAN?
■ ANY BINDING COVENANTS: A
covenant is a promise to do or not to do
something.
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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■ It creates a duty to perform.
■ Use shall to signal a covenant
– All non-physical defects and
encumbrances
– All disclosed and known defects and
TERMS
encumbrances should be included in a
special condition to prevent buyer from
raising objection afterwards.
AND… ■
■
DEPENDENT ON APPROVAL
REGISTRATION OF TRANSFER.
■ WHEN SHOULD VACANT POSSESSION
BE ASSUMED
■ -DELIVERY ETC.
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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WARRANTIES AND
REPRESENTATIONS
THE FOUNDATION OF THE VENDOR’S QUESTIONNAIRE.
Representations and warranties are common law concepts.
They establish standard of liability and carry with them
legal remedies.
If representing the maker, draft representations and
warranties narrowly, and qualify them as much as possible.
If representing the recipient, draft representations and
warranties broadly and with as few qualifications as
possible.
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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BREACH ■ GOVERNING LAW
– BREACHES
OF TERMS ■ WHAT SHALL
AND BE THE
REMEDY.
REMEDIES
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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DISPUTE
RESOLUTION
HOW TO RESOLVE DISPUTES SHOULD THEY
ARISE.
WHAT SHOULD BE THE FORUM.
■ Consider the potential of dispute arising.
(this is often ignored).
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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GOVERNING LAW
BREACH BREACHES
OF TERMS WHAT SHALL
BE THE
AND REMEDY.
REMEDIES See Above Slides
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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THERE MUST BE
ATTESTATION CLAUSE
PARTIES MUST SIGN
BEFORE A WITNESS /
WITNESSES.
ATTESTATION S. 63LA & SS 91-94LRA
ATTESTATION CLAUSES
– Land Registration Rules, 1954
12. Attestation clauses
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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SCHEDULE
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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LAYOUT
(Check FORMATS in SLIDE BELOW – Tina Stark & Haigh*)
Heading
Commencement
Description of Parties
Interpretation
Description of Subject Matter
Any Special Terms
Consideration
Covenants/Conditions
Rights and Obligations of Parties
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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LAYOUT..
Warranties& Representations
Governing Law
Dispute Resolution
Attestation Clause
Schedule
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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SALE AGREEMENT
Parts of an Agreement Parts of a Commercial Contract:
1. Preamble. 1. Names and addresses of the parties
2. Recitals.
2. Recitals
3. Words of agreement.
3. Definitions
4. Definitions.
5. Action sections.
4. Conditions precedent
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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Gondwe, Z.S. Manual of Transfer of Right of Occupancy in
Tanzania. Mkuki na Nyota. 2001
Tenga W.R. & Mramba S.J., Disposition and Conveyancing
in Tanzania: Law and Procedure, Law Africa. 2017.
Tenga, R.W. & Sist J. Mramba, 2020 Conveyancing and
Disposition of Land in Tanzania: Law and Procedure.
Juris-Publishers DSM;
Abbey R. & Richards M., A Practical Approach to
Conveyancing, 15th Edn. Oxford University Press. 2013.
Chapters 2-5.
REFERENCES Onalo P.L. Land Law & Conveyancing in Kenya. Law Africa.
2008. Chapters 15 & 18.
Farrand LL.D. Contracts & Conveyance 2nd Edn. London
1963. Chapters 2-4, 6 & 15.
Bowman E.G & Tyler E.L., The Elements of Conveyancing.
Sweet & Maxwell 1972. Chapters 2,& 5.
Harwood M., Conveyancing Law and Practice. London.
1998.
THE ENCYCLOPEDIA OF FORMS & PRECEDENTS
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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THE END
The Process of Sale and Purchase of Land in Tanzania. - Dr. Ringo Tenga (TLS - Remedial CLE -
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