Obtain an official search at the Land Registry
Agency: Registry of Titles
The buyer must conduct a search of any encumbrance before starting the transaction formally. The document obtained does not necessarily show all the owners of the property in the last 10 years. In practice, the buyer conducts the search to obtain confirmation of the ownership status and encumbrances registered on the property.
Time and cost: 7 days, TZS 40,000
Submit application letter to obtain evaluation at Ministry of Lands or Local Government Authority
Agency: Ministry of Lands or Local Government Authority
The seller can request the valuation report at the Ministry of Lands. The valuation report will be prepared by the Ministry of Lands or Local Government Authority (valuation department) and sent to a government valuer for approval. Regardless, final approval must be given by the Chief Government Valuer. It does not necessarily include or reflect cadastral value of the property. Valuation of the property is for purposes of ascertaining stamp duty and Capital Gains Tax.
The documentation shall include:
- Property title issued by the Land Office and/or Land Registry
- Cadastral map/plan of the property prepared by an architect if it is a lease of part of the property such as a flat in a block building
Time and cost: 7 days, TZS 156,806.08 (The official valuation fee is calculated by using the following formula: (Property Value – 200,000) * (1.25/1,000) + 550 + valuation approval fee of 0.01% of property value)
Obtain land rent clearance from the Land Ministry showing payment of rents
Agency: Land Ministry or Local Government Authority
The seller is required to obtain a land rent clearance from the Land Ministry, showing that all land rents have been paid
Time and cost: 1 day, no charge
A government valuer inspects the property to confirm its value
Agency: Ministry of Lands
A government surveyor must determine the value of the property and, where necessary, establish a cadastral value and prepare a cadastral plan. In certain instances, the Chief Government Surveyor may inspect the property valued to confirm that the valuation report accurately reflects the correct property value. The valuation report must be approved by the Chief Government Surveyor.
Time and cost: 7 days, paid in Procedure 2
Notarization and execution of the sale agreement and preparation of the transfer deed
Agency: Ministry of Lands or Private Advocate
A lawyer usually prepares and notarizes the sale agreement, and prepares the transfer deed, which takes about two days. Notarization of the sale agreement is mandatory. The process can be delayed if the seller fails to provide all the necessary documents for the preparation of the sale agreement and transfer deed. The process can also be delayed if the parties take a long time to negotiate and execute the documents. The cost of preparation is officially 3%, however this is negotiable with the lawyers involved.
Time and cost: 1 day, TZS 3,477,912.99 (Approximately 3% of property value)
Obtain approval for the transfer
Agency: Commissioner of Lands
This stage involves obtaining approval from the Commissioner of Lands for the disposition of the property.
Documentation shall include:
- Original Certificate of Title/Letter of Offer
- Original Land Rent receipt for the relevant year
- Original Valuation Report
- Original Valuation Approval receipt
- Transfer forms
- Form 30 (form for Application of grant of approval for disposition)
Together with form 30, the applicant will also be required to submit forms 29 and 35. Depending on the total asset value of the seller and buyer, an application to the Fair Competition Commission for approval may also be required. The current threshold is T.Shs 800 million.
- Copy of Passport/birth certificate (of two directors of the seller and buyer)
- Certificate of Incorporation and Memorandum and Articles of Association of the Company (seller and buyer)
- Board Resolution approving the disposition of the property in respect of the seller and Board resolution approving the purchase in respect of the buyer.
Time and cost: 19 days, TZS 5,000
Obtain a capital gains tax certificate from the Tanzania Revenue Authority
Agency: Tanzania Revenue Authority
A Capital Gains Tax Clearance Certificate is obtained from the Tanzania Revenue Authority before the name of buyer is recorded in the Land Office or the Land Registry.
Time and cost: 18 days, capital Gains tax is calculated as 10% of the amount gained by the Buying Company – Not included in our calculation
The transfer deed is delivered to the Registrar of Titles for its recording under the name of the buyer at the Lands Registry
Agency: Registry of Titles
The transfer deed is delivered to the Registrar of Titles for its recording under the name of the buyer at the Land registry. The Registrar of Titles also ensures that all the other taxes in respect of the property have been settled including Capital Gains Tax described in the procedure above.
Once all these fees are paid the transfer is then registered and the buyer is recorded as the owner of the property.
Documentation Requirements:
- Notarized sale agreement and transfer deed
- Capital Gains Tax clearance certificate from the TRA
- Consent letter from the Commissioner of Lands
- The original title deed
- Proof of payment of all necessary fees, i.e. land rent and registration fees
Time and cost: 14 days, TZS 2,319,108.66 (1% of property value (Stamp duty) + Registration Fee as follows: registration fee (1% of the property value + 500 for the instrument))
