Things to consider before buying land in Tanzania. (T.I.C)

Buying land is different in Tanzania than in most other countries. It’s important to understand how the land-buying process works, because there are a lot of misconceptions. Here are seven things that you need to know.

1.You Are Buying the Rights to Land – Not the Land Itself

When you purchase land in Tanzania, you don’t have the same rights as landowners in other countries. There are several laws governing land use and ownership, which include:

• Tanzania National Land Policy in 1995
• Land Act No. 4
• Village Land Act No. 5 of 1999

These laws stipulate that the Tanzanian government technically owns all land in the country. However, Tanzanian citizens can purchase the rights to use the land.

You can purchase the rights to use land for a variety of purposes, such as building your own home or starting a farm. However, there are a couple of restrictions:

•  You can’t directly sell the land to another party. If you want to sell the land, you need to return the land to the government and they’ll issue a new Certificate of Occupancy.
•  You can’t simply pass the land along to your heirs. The land would return to the government, so your children would need to purchase their own Certificate of Occupancy after your death.
•  The village determines the duration of the Certificate of Occupancy. It usually expires within 30 to 99 years.

You need to understand these drawbacks before deciding whether it’s worth purchasing land or not.

2. Foreigners Can’t Buy Land for Personal Use

The Tanzania Investment Act allows foreigners to purchase land for investment purposes; they cannot buy land for their own personal use, however.

If you are a foreigner and want to own property, you’ll need to purchase it through a Tanzanian national. Keep in mind that they’ll actually own the rights to the land. You only want to go this route if the person is someone that you trust, such as a spouse with Tanzanian citizenship.

3. Be Careful When Purchasing Land Online

Buying land in Tanzania is a complicated process. Unfortunately, some people try to make it sound like it will be very straightforward, because they are trying to scam unsuspecting buyers.

Here are a couple of things to watch out for:

•  The seller claims that they will give you the Certificate of Occupancy after the sale is completed. Unfortunately, they don’t actually have the authority to do that. You have to submit an application to the Commissioner for Lands.
•  The seller isn’t willing to sign a contract that tentatively surrenders their right to land ownership. They could take your money and hold onto their Certificate of Occupancy. Without a clear contract in writing, you probably will not be able to contest it.

While most advertisers that use Kupatana and other online platforms to sell land are honest people, there are some scammers out there. You can reduce the risk of being scammed by understanding the process.

4. Have a Clear Purpose for Your Land

Buying land is a very time-intensive process. It also costs a bit of money. You need to know that your investment will be put to good use.

There are a few reasons to consider buying land, but one of the biggest ones is for investment purposes.

Demand for land is rising throughout Tanzania. Many people are selling land to foreign investors.

One journalist recently reported that foreign direct investment in Tanzania is rising sharply.

“According to Britain's Guardian newspaper, Tanzanian officials are still in talks to sell 1,500 square kilometers near the famed Serengeti National Park to a private company connected to the royal family in Dubai, the wealthy Gulf city-state that's part of the United Arab Emirates… The case is eye-catching for the cast of characters involved, but is only the tip of the iceberg when it comes to overseas firms buying up land in Africa. Between 2000 and 2012, some 5 percent of all of Africa's agricultural land has been leased by outside investors. According to a 2011 report by the rights group Oxfam, international investors have bought, sold or leased some 227 million hectares of land in Africa – a figure equivalent to a good chunk of Western Europe.

Since the global financial crisis in 2008 spurred chaos in global food markets, Africa's supposedly under-used arable land became a coveted asset for governments and firms elsewhere.”

If you own property, you could generate a decent amount of money selling it to the right third party.

5. Choose the Location Wisely

For over a century, experts have said that there are three keys to making money in real estate: “Location, location, location.” This is a bit of an exaggeration, because there are obviously other factors, such as timing and improvements made to the property. However, the importance of finding the right location cannot be understated.

•  If you are purchasing land to start a new farm, you’ll need to make sure it is farmable. This sounds obvious, but you’d be surprised by how many people don’t do their research. You probably won’t grow many crops on the top of Loleza Mountain, so you wouldn’t want to purchase land there.
•  Are you planning on selling land to a foreign developer? It makes a lot more sense to purchase land in an urban or suburban community where their new ventures have some potential.
•  Do you want somewhere to build a home and raise your family? It needs to be close enough to your job and your children’s school.

Take some time to really understand what it takes to succeed with your new venture.  

6. Understand How to Deal with Land Disputes

Unfortunately, land disputes happen all the time for a variety of reasons. This is just one of the headaches you need to be prepared for before buying property.

If you run into any problems, you will need to bring them up with the court or Village Land Council in the jurisdiction where the land is located. You should read the Land Disputes Courts Act of 2002 and the Village Land Act to learn which body has jurisdiction.

The Village Land Council consists of seven members. Here is an excerpt from the Village Land Act that specifies their functions:

“The grant of a lease, a licence, a usufruct or an equivalent interest in customary law from year to year or for a lesser period to a person ordinarily residing in the village from a person ordinarily residing in the village; and the creation of –  a small mortgage; or a mortgage for an amount equal to or less than the amount for which a small mortgage may be created; or a mortgage, reasonable sale or pledge under and in accordance with customary law in favour of a person ordinarily residing in the village by a person ordinarily residing in the village for a sum not greater than the sum which may be obtained by a loan through a small mortgage… prepare a draft sharing arrangement for the continued dual use of the land either for a limited period or indefinitely  based on the claimed uses of the land modified so as to reduce the likelihood of disputes…”

It’s a good idea to find out who is on the Village Land Council before buying land. You want to make sure that they can do their job effectively and help you with any disputes, especially if the seller doesn’t want to give up the land after taking your money.

7. Understand the Types of Land Recognized Under Tanzanian Law

According to the Tanzanian Investment Centre, there are three types of land, which are subject to different regulations. Here is an overview of them:

• General land has been surveyed by the government. It is typically located in an urban area like Dar es Salaam or neighboring communities.
• Village land is located within the borders of a given village. It generally has not been surveyed yet. Unsurveyed land can be sold for personal use, but may not be used for commercial purposes.
• Reserved land is specifically designated for government purposes, such as national parks and forestry.

Never purchase land without verifying its status. Unscrupulous people may claim that they own reserved land and try to sell it. They may also make an honest mistake, because they forgot where the boundaries were drawn. They may also not know whether land was surveyed or not, so they may not be able to tell you whether the land is available for commercial development.

Speak with the Village Land Council if you have any questions. They can address your concerns before you spend money.