LEASEHOLD LAND TENURE

Lease hold can be defined as holding land for a known time frame based on conditions in an
agreement between the registered owner and the tenant.

Lease tenure involves a land owner giving another person called a tenant/lease the right to possess
or control the land in exchange for payment. The owner of the land grants another person
undisturbed/exclusive use of the land usually for a period of time.

Section (1) of the Land Act Cap 236 defines leasehold tenure as holding of land for a given period
from a specified date of commencement on such terms and conditions as they may be agreed upon
by the leaser and lease

Section (3)(5) of the Land Act Cap 236 also talks about leasehold tenure is a form of tenure;

(a) Created either by contract or by operation of law.

(b) The terms and conditions of which may be regulated by the law to the exclusion of any
contractual agreement reached between the parties.
(c) Under which, one person normally the landlord/lesson, grants or is deemed to have granted
another person, normally the tenant or lease exclusive possession of the land usually but not
necessarily for a period defined directly or indirectly by reference to specific period or date
of commencement and a specific date of ending.
(d) Usually but not necessarily in return for a rent which may be for a capital sum known as
premium or for both rent and a premium but maybe in return for goods or services or both
or may be free of any required return.
(e) Under which both the land and the tenant may, subject to the terms and conditions of the
lease and having regard of the interest of the other party, exercise such of the powers of a
freehold owner as are appropriate and possible given the specific nature of leasehold tenure.

Land may also be leased from the state to individuals for typical lease period of 5, 45 or 99 years.
In return, the tenant usually pays an annual rent or service under specified terms and conditions.

Leasehold tenure is most evident on public land of which they are granted the District Land
Board and Uganda Land Board Commission on behalf of the Government leases that are granted
on public land are called public leases while those granted on private are known as private
leases.

Non-citizens of Uganda can acquire leases on land for a period of time not exceeding 99years,
non-citizens must register a lease if it exceeds a period of 5 years.

Private leases can be converted to freehold with the consent for the landowner. Any lease (public
lease) that was granted to a Uganda citizen out of former public land might be converted into
freehold. A person can also acquire a lease on public land from the district land board such
leases are usually granted for a duration of 49 years.

A registered lease is provided by possession of a certificate of title and unregistered lease can be
provided by a lease agreement between the lease.

Note; Non-Ugandans whether individuals or companies can only own land under leasehold
tenure in Uganda.
FEATURES OF LEASEHOLD TENURE SYSTEM

The leaser transfers exclusive possession to the lease.

Transfer is made upon payment of an agreed rent called premium.

A lease is given for a specified period, the start and end of which is clearly stated in the lease
agreement.

It is the only form of holding land allowed to foreigners in Uganda.

A non-citizen cannot be granted a lease of more than 99 years.

It is common in urban areas such as towns, municipalities and cities where public land is held
and managed by institutions like the Uganda Land Commission and the District Land Board.

CONVERSION OF LEASES INTO FREEHOLD

A lease that was granted to Ugandan citizens out of formerly public land can be converted to
freehold as stated under Article 237(5)

Also a lease of land exceeding 100 hectares can be converted into freehold, the owner of the
land is required to pay market value as determined by the chief government value for a new
interest before the conversion becomes effective and the money paid becomes part of the land.

Note; Market value is an estimated amount for which an asset or liability should be exchanged or
the valuation date between a willing buyer and a willing seller.

Section 28(1) of the Land Act provides for the conditions that must be fulfilled leasehold is
converted into freehold and these include;

(a) The leasehold is authentic and genuine.

(b) That there were no customary tenants on the land at the time of acquisition of the lease.
(c) That if there were any customary tenants on the land at the time of acquisition whose
tenancy was disclosed, those tenants were duly compensated.
(d) That all development conditions and covenants have been complied with.
(e) That any other conditions imposed by from time to time have to be complied with.
(f) That the conversion shall be limited to 100 hectares and that any area in excess on the 100
hectares shall be converted only if the board has verified it and satisfied that it desirable in
the public interest that it should be converted to freehold.

Section 28(2) 0f the Land Act Cap 236 provides that where a board approves the conversion of
the land exceeding 100 hectares into freehold the owner shall pay market values as determined
by the chief government values for the new interest before the conversion becomes effective
and that money paid shall become part of the land fund.

Section 28(3) of the Land Act

Section28(4) of the Land Act provides that upon conversion, the registrar of titles shall endorse
on the leasehold certificate of titles the words “Converted to freehold write the applicable land
and append his/her signature.

Section 28(5) of the Land Act cap 236 provides that The commissioner shall have power to ask
for the production of the duplicate of the certificate of the title for endorsement in accordance
with subsection .(4)
 Section 28 (6) of the Land Act cap 236 provides that The commissioner shall endorse on a sub
leasehold deed to which subsection (3) applies the words “converted to Leasehold ’’cite the
applicable law and append his or her signature.

Section 28(7) provides that for the avoidance of doubt , the Registrar of Titles shall issue a
certificate of title in respect of any sublease upgraded to a lease under this section

Section 28(8) of the Land Act Cap 236 provides that Any person aggrieved by the decision of the
board under this section may appeal to the District Land Tribunal against the decision ; and the
District Land Tribunal may confirm , reverse ,vary or modify the decision and make such order as
it may think fit.

CUSTOMARY TENURE SYSTEM.

Is a system of land ownership based on customary rules formed from norms and cultures of
clans, families, or communities.

In Uganda most land is held under customary tenure system. This is where the owners have no
papers of land but are still the legal owners of the land.

subject to Article 237 of the constitution of Uganda; All land shall vest in the citizens of Uganda
and shall be owned in accordance with the following land tenure systems;

(a) Customary
(b) Freehold
(c) Mailo land
(d) Leasehold

People in customary tenure system usually don’t have or own land tittles.

Although it is usually characterised by non registration of interests, lack of registration doesnot

invalidate a customary tenure.

Rights to control, use and ownership of customary land are derived from being a member of a clan,
family, tribe or a given community. Membership is retained by fulfilling certain obligations in
accordance to the clan, tribe or community one is affiliated to.

According to land Act cap 236 section3 expounds on the customary land system

In the 1900 Buganda agreement Article 15, land was divide into land for properties of his highness
including land for forests, plantations and land for Namasoole some for the princes, princesses to the
Abamasaza to the reagents the Mbogo, some for the government.

In the case mtoro bin Mwamba v Ag (1952) TLR 327

In Uganda two general customary systems can be distinguished;

1) The communal land system where land is owned by the community, where user rights are
guaranteed for farming and seasonal grazing, access to water, pasture etc.
2) Under individual/family/clan where the family and clan rather than the whole community
has control over land.it is usually allocated to the male children.

FEATURES OF CUSTOMARY TENURE.

 1) Land is owned and disposed off in accordance with the customs, norms and practices of
a specific family.
2) It is applicable to a specific area of land and a specific class of people.
3) It provides for communal ownership and use of land.
4) Land is owned perpetuity
5) Customary land maybe converted to freehold tenure by registration.

CONVERSION OF CUSTOMARY LAND TO FREEHOLD

According to section 9 of the Land Act,

(1) Any person, family, community or association holding land under customary tenure on
former public land may convert the customary tenure into freehold in accordance with the
act.
(2) The decision of the land approving the conversion to freehold tenure shall be in the
prescribed form.

PROCEEDURE

(1) An application for conversion from customary tenure to freehold tenure in prescribed form.
(2) It shall be submitted to the committee with the fee.
(3) On receiving of the report and recommendation of the committee, the board shall cause the
land in respect of which the application is made to be surveyed.
(4) When the board approves an application for conversion, the board may attach conditions.
(5) Any party aggrieved by the decision of the board may appeal to the district land tribunal.
(6) The tribunal may confirm, reverse, vary or modify the decision and make orders as it
empowered to make by this act.s

CORTIFICATION/CERTIFICATION OF CUSTOMARY OWNERSHIP/RIGHTS

Artical 237(4) of the constitution empowers all Uganda citizens owning land under customary
tenure to acquire a certificate of ownership in a manner prescribed by the parliament.

On the basis of section 4(1) of the Land Act provides that individuals, families or communities
owning land under customary tenure on former public land may acquire a certificate of
customary ownership in respect of the land in accordance with the Act.

PROCEDURE FOR APPLICATION OF CUSTOMARY CERTIFICATION

The applicant must submit an application in the prescribed form together with the registration
fee to the land committee of which the parish the land is situated.

Upon receipt of the application, the committee is required to advertise the application by posting
a motion in a prescribed forum in a prominent place in the parties and on the subject land.
The notice should specify the location of the land and its approximate area. In addition, the
notice should contain an invitation to any person with an interest or claim in the subject land
including owners of adjacent land, to attend a meeting of the committee at a specified time to
make his/her claim.

The meeting should not be scheduled earlier than two weeks from the date of publication of the
notice.

The land committee must meet to her and determine the application on the day advertised in
the notice. Section6(1) states that the committee shall determine, verify and make the
boundaries of all interest to which the land to which the land is subject. Claim of other persons
over the subject land must be heard and determined. These may include; rights of way or any
other accusment and third party rights over the land.

If in course of its proceeding the committee deems it necessary it may adjourn its hearing and
invite an officer from the district land board office or any other person with recognised
knowledge of local matters to conduct for investigations on the claim.

In making its determination in the land, the committee is obliged to safe guard interests and
rights in the land of women, minors, persons with disabilities and absentee. The committee is
also required to take account of any interest in the land in respect of which no claim is made.

In each event of any dispute claim, the committee must use its best endorsers to mediate the
land between the revival parties in order to arrive at an agreed settlement. However, the
committee is required to adjudicate in accordance with customary law any dispute refereed to it
by any person with interest in the subject land or refereed to it by any owner of adjoining land.

CONDITIONS ON CONVERSION OF CUSTOMARY TENURE/ LEASEHOLD TO FREEHOLD

Regulation 14 of the Land Regulations 2004 provides for conversion of leasehold out of its former
public land to freehold, it provides that an application for conversion of leasehold out of its
former public land into freehold shall be in forms 5 specified in the first schedule;

Regulation 16 of the Land Regulations of 2004 provides for application for leasehold, it provides
that an application of a leasehold in case of land held by the land commission shall be in form 7
and in case of land held by a board shall be in form 8.

The following are the conditions on conversion customary tenure or leasehold to freehold;
section 13 of the Regulations 2004 provides for these conditions;

(a) The freehold owner shall keep and use the land in accordance with the rules of good
husbandry, due regard being had to the customary practices of land use in the area and to
planning regulations in case of planned areas.
(b) Any buildings or other structure on the land shall, while they are in use, be kept in good and
substantial repair.
(c) Obstructions shall not be placed on the land which may impede the use at any easement or
profit a prendre or usufructuary rights over the land which have been determined by the
board to exist and to which the conversion or grant is made subject.
(d) Any condition, restriction or limitation which is binding on the freehold owner shall, unless
otherwise expressly provided for in the document of conversion or the grant, be binding
upon all persons claiming an interest in the land.
(e) Any other condition the board may consider necessary or desirabl
In conclusion