GUIDELINES FOR DISPOSITION RIGHT OF OCCUPANCY IN TANZANIA

1. Meaning of Disposition/Transfer

As business or individual when acquire property from other part it is safe to change ownership legally in order to avoid conflict, but also it give both part a full right of enjoyment on such property. 

Simply the transfer or disposition of property is an act to change the ownership of the Right of Occupancy from the person or group of persons, institution and company. 

The transfer can occur due to the  following scenario; ordinary sales, auctions, tender and Gift (natural love and affection).

The main requirement for disposition of right of occupancy guided by land Act of 1999. According to section 37 of the Act  gives the authority to the Commissioner for Lands or authorised land officer to provide consent or approval of the transfer of property, thus form the root of transfer process. The permission applicant will be required to submit for request such approve as addressed accordingly. Note that any disposition without consent of commissioner is void.

1.1 Requirement Application for Grant Approval of Disposition in case of Persons part

1. Submit original certificate right of occupancy or letters of offering if certificate of title not produced.
2. Original payment receipt of letters of offer and acknowledgement of payment if the title not released.
3. Two passport small size similar for two part involved in the contract.
4. Proof of citizenship both part as non-citizen not allowed owning land in Tanzania[1]. The document required is either certificate of birth, travel document National Identity and affidavit of birth  must be certified copy.
5.  At least three (3) copies of sale agreements.
6. Valuation report prepared by registered valuer and approved by Chief Valuer. Attached with the receipt of approval fee. Fee is 20,000/ for market valuer below 100 million and above is 0.02% of market value, exclude valuer consultation fees.
7. Receipt of the rent of land for the year of financial concerned.
8. The form for the intended purpose of transfer/notification (Land Form No. 29) is three copies.
9.  Form of application for approval of the transfer (Land Form No. 30) three copies.
10. Transfer deed (Land Form No. 35) three copies.
11. Receipt real the payment of an application for approval disposition. The fee  it change time to time but currently 2020; Notification of Disposition TZS 40,000/ and Grant Consent of Disposition 80,000/

1.2 Requirement Application for Grant Approval of Disposition between Person and Company or Group

1. All the requirements specified in part (1.1).
2. Certificate of registration / registration of company, partnership or group or extract.
3. Memorandum and Articles of Association of the transferred company or Constitution for partnership or trustee.
4. Information for in the company showing stock of the company (Annual returns).
5. Approval of the Administrator General if is the trustees and are registered.
6. Certified as copy of citizenship proof for majority shareholders.
7. Resolution of Board or trustee to acquire /dispose such property.

1:3 Requirement Application for Grant Approval of Disposition to the Foreign Embassy.             

1. All the essential requirements outlined in the part (1: 1).
2.  Acknowledgement letter from the Ministry of Foreign Affairs and International Cooperation to prove non-objection.

1: 4 Requirement Application for Grant Approval of Disposition to the Non-Citizens  

1. Demand the entire requirement in the part (1: 1)
2. Certificate  of incentive  from the Tanzania  Investment centre (TIC)
3. Centre of investment  will  transferred possession of property and then they will give the Derivative Right to non- citizens accordingly

1: 5 Requirement Application for Grant Approval of Disposition Under power of Sale by Auction and Tender.

1. Provide all requirement in part 1:1, except valuation report and sale contracts.
2. Advertisement for tenders or auctions issued to the newspaper to the community.
3. Certificate of sales at auctions from the auctioneer
4. Letter of enlightenment of who won the tender if the sale is made in a way that.

1:6 Requirement for Grant Approval of Disposition made by Legal Personal Representative 

1. Inheritance procedures must completed first, according to the laws and regulations.
2. If the land contain certificate of title, the administrator of the estate should submit Application by Legal Personal Representative, together with certificate of Title to the Registrar of Title for the application to be registered.
3. If the land contains a letter of Offer, the administrator of the estate should submit the application for recognition as the administrator of the estate to the Regional Land Commissioner or Authorised Land Officer. 
4. The Regional Assistant Commissioner of Land or Authorised Land Officer will grant permission, if possession is not objectionable.
5. All the requirements outlined in the part (1: 1).
6. Consent or oath of heirs to approve such disposition.

NB. All transaction documents should state the transferor as Legal Personal Representative 

1: 7 Procedures to follow when submit all required Documents          

1. After the documents mentioned presented the Commissioner for Land or Authorised Land Officer shall approval such disposition. The consent shall be issued after clearly prove that there is no objection whatever in possession.
2. After the approval disposition the part required to pay Stump Duty. The stamp duty  as one percent of whichever is greater between consideration per sale agreement and market value per valuation report.
3. The original payments receipt shall be submit to the Commissioner of Land or Authorised Land Officer who will prepare and sign the Land Form No. 33 or consent of disposition.
4. All submitted transfer document will handed over to Transferee in order to submit to the office of Tanzania Revenue Authority for making payment of Capital Gain Tax, except transfer under power of sale.
5. After Payments have taken place, the Transferee will present original Capital Gain Tax Clearance Certificate. As well as all transfer documents to the Registrar of the document and Title for the registration stage  for plots have certificate of title. In this stage, the part shall pay registration fees, which is 1% of whichever is greater between consideration and Market value. For the case of transfer under power sale is 2% of consideration. After Registration is completed, the document will presented to the Transferee.
6. In case of the property issued letter of offer, transferee shall present Capital Gain Tax Clearance Certificate. The process of preparing certificate right of occupancy for the name of the Transferee should be made at the office of the Commissioner for Land or local Government .

 

NB. Other cost for advocate and valuer it depending on the nature of the work but you must paid that consultation fee.

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[1] Foreigner can get derivative right under Tanzania Investment Center for investment purposes