HOUSING

Uganda is arguably among the friendliest countries in Africa. The peace and continued growth over the years have attracted a good number of visiting tourists, foreign embassies, and large multinationals, who carry along staff when setting up shop here. It’s no surprise therefore that many visiting expats have chosen to settle, long after serving out their work contracts. If you are considering a permanent move to Uganda, accommodation and housing should be high on your priority list. Worry not, we decided to run a special for you in this edition of Expats In Uganda. The development of new residential areas in the outskirts of Kampala has increased the options for luxury housing, and this has opened up neighborhoods like Naalya, Kira, Kisaasi, and Kiwatule, to expat residents.Renting/Leasing:Your options when it comes to long term housing are split between leasing and renting a house.The 1996 Constitution grants land ownership rights solely to citizens of Uganda, foreign nationals and corporations may, however, obtain leases for 49 or 99 years. If you are on a budget and willing to trade in your privacy for a more affordable option, sub-letting to split costs with a housemate could work. In Uganda, there are no tenant protection laws, rent can be freely negotiated between tenant and land lord,but will most likely require a security deposit which is worth one month’s rent. Advance payment from three months to a year’s rent is typically paid and succeeding rent is paid quarterly in advance. Typical rental agreements last for one to two years. Normally, a three month’s notice period is included in the contract, and in some cases, a break-off or diplomatic clause is included. According to Knight Frank, a local real estate firm, there are old and new expatriate dominated areas in and around Kampala. The old areas have been established expatriate housing areas for more than a decade, are located in and around the city center (Bugolobi, Naguru, Kololo, etc.), and are generally of higher cost. The new areas are in the outskirts of the city, usually have better views, and are less expensive.

LISTINGS,

CENTRAL TOWN

SERVICED APARTMENTS

Rules for Moving in Successfully

• Ensure that all your belongings are insured for their replacement value before being shipped.
• With the help of friends or recommended realtors, look for a suitable house before arrival of your goods to avoid all subsequent storage costs.
• Ensure that water and electricity are properly connected; working perfectly and the bills are up to date.
• Do not pay your rent unless the landlord has documented proof that all bills are up to date. Otherwise, you risk inheriting them to avoid disconnection.
• Do not pay your rent to realtors unless you have seen the actual landlord.
• When taking delivery of your goods, show the removal team around the house first; you may even put signs on each door with the name of the room in a language they understand (most removal companies use English).

REMOVALS

RENTING

To rent there is always an agreement drawn up between the landlord (usually the owner of the building being rented out) and a tenant, relating to occupying the building, subject to payment of rent. If you rent a property ‘furnished’, it usually has furniture, crockery but does not normally include sheets, etc. Sign an inventory as this will help you in the event of dispute. If you rent ‘unfurnished’, you should be aware that the majority of decent apartments include kitchen appliances but curtain rails, carpets and lighting appliances are not usually included. After identifying the property and inspecting it to ensure that it meets your desired standards; you are advised, as a first time resident, to preferably engage the services of a lawyer. The landlord will be expected to provide you with a copy of the title deed and identification documents. The first time resident should provide; A copy of his/her passport, photographs and both parties (landlord/lessee) will be required to sign a copy of the tenancy agreement.

Payable by the Tenant

Private consumption of water, gas, electricity. Plus communal management charges in flats.

Payable by the Landlord

Repair of buildings, rire insurance, purchase of communal materials, maintenance and repair of tanks, tiles, and electrical installations.

Tenants’ Deposit

Tenants usually pay a deposit which is refunded at the end of the tenancy, less any costs of damage agreed between the two parties.

Ugandan law stipulates that a foreigner cannot buy land but can only get a lease. However the same law allows you to buy land in the name of a company. After locating and identifying the desired property, you are advised;

1. To find a recommended lawyer
2. To ensure that you get a copy of the title and have it verified at the Ministry of Lands to ensure that the title is genuine.

3. After confirmation that the title is genuine, when ready to pay for the property, have a lawyer draft a sales agreement for the property which should be signed by both parties i.e. the seller and buyer plus witnesses and a lawyer subsequent to which payment is finalized.
4. Proceed and register the title deed in your names.

Purchase is carried out in 3 stages: the signature of a provisional sales agreement (key document that shows evidence of purchase),followed by issue of transfer forms (documents used to indicate evidence of property transfer) and the title deed (legal document that shows evidence of ownership of a property). Also required during purchase is a copy of the vendor’s/buyer’s identification documents, along with 2 passport photographs of the vendor/buyer.

ACQUIRE A LEASEHOLD LAND TITLE

Procedure

Required documentation:

•  You must have fully completed forms 8, 10, 18, 23 from the Ministry of Lands, Housing and Urban Development http://mlhud.go.ug/lands-management-forms/.
• A set of authentic deed plans.
• 3 passport photos
• Area land Committee report
• District land officer technical report
• Receipt of payment
• Forwarding letter requesting for a leasehold title signed by the District Land officer of the respective District where the land is located.
• Present original copies and photocopies (of the above documents) to the department of land Administration for processing where Photocopies are stamped “Received” and returned to you.
• Check for approval of documents within a period of ten working days.
• Once approved the documents are then forwarded to the office of titles for preparation and issuance of lease agreements, sealing by the chairperson and secretary of the respective district land board. This takes ten working days.
• Pay stamp duty ( 1% of premium of 1 % of annual rent X years granted)
• Once the lease documents have been fully signed, sealed and Embossed at URA, you’re then issued photocopy of lease agreement (signed, stamped “Received”).
• On presenting the stamped “Received” copy you’re then issued a Leasehold title.

Fees paid to URA – 1% of the premium ground Rent.4Fees paid to Ministry and District Registration fees: UGX. 10,000 Assurance of Title: UGX 20,000 Issuance of Title: UGX. 20,000 Preparation of lease: UGX 20,000

Real Estate Agencies

Crane Management Services Limited

38, 1st Floor, Crane Chambers t: 0414 343 607/608/552, M: 0752 711 750/903/035 e: cms@rupareliagroup.com w: www.cms.co.ug

National HousingHead Office t: +256 312 119 300 e: sales@nhcc.co.ug, w: www.nhcc.co.ug