Lesotho

Registering Property in

Lesotho

Listed below is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standard Property Transfer

  • Property Value: LSL 448,353.36
  • City: Maseru

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No. Procedure Time to Complete Associated Costs
1 File for land inspection and surveying at the Ministry of Local Government

Parties should request an inspection at the Local Government. Chief Land Surveyor should be present at this request. The client or the lawyers files the lease and the other documents for the sales transaction at the Department of Land Surveys and Physical Planning (LSPP) within the Ministry of Local Government that has the authority to issue the lease documents as of the Land Act of 1979. An inspection is applied for separately from the Surveying and Evaluation Department. The inspection is done for valuation purposes.

Agency: Ministry of Local Government 		1 day no cost
2 Inspection and surveying of the property

The surveyors of the Municipality will inspect the survey and prepare a report. Parties must provide transportation to the surveyors if they do not have it.
14 days no cost
3 The lawyer conduct a deeds search

Most lawyers will conduct a deeds search to check for encumbrances and indicts on the property as part of their due diligence before drafting the deed of transfer. The title search can be done both at the Registry of Deeds or the Department of Land Surveys and Physical Planning (LSPP) within the Ministry of Local Government that also issues the ministerial consents (see procedure 4). Both agencies have essentially the same records. Because all land in Lesotho is Crown Land, the LSPP will always have a record.

Agency: Registry of Deeds 		1 day LSL 3 + LSL 2,000 (lawyer fees)
4 Submit the deed of transfer and application to a lawyer or legal practitioner

The Deeds Registry Act 1967 requires that a deed of sale has to be lodged by a lawyer. The deed of sale is the sales contract and the deed of transfer is prepared for the purpose of registration.
5 days LSL 2,500
5 Land transfer application filed for government approval at the Ministry of Local Government

Ministerial consent is required by section 35 of the Land Act Nº.17 of 1979. The consent is requested by the seller or his lawyer who will need an id to prove that the same person is the title holder. In the case of a company the memorandum and the articles of association must be presented. When the ministerial consent has been signed, the LSPP prepares another form (Form LB) which is attached to the deed of transfer.
This step can take up to 3 years. If this is not completed within the 12 month fiscal year beginning April 1, one must start the process again.

Agency: Ministry of Local Government 		75 days LSL 10
6 Lodge the deed with the Registrar of Deeds

The parties lodge the deed with the Registrar of Deeds for examination of compliance with the provisions of the Deeds Registry Act No. 12 of 1967. Registration fees, Stamp Duty, and Transfer Duty are paid at the Registrar of Deeds. Parties collect original + one copy, and one copy is left at the Registry of Deeds.
The formula to calculate Stamp Duty payable on immovable property is:
Transaction amount Duty payable
Under LSL 7000 1%
Over LSL 7000 LSL 70 + 3% for value exceeding 7000

The formula to calculate Transfer Duty payable on immovable property is:
Transaction amount Duty payable
Under LSL 10000 3%
All other amounts 3% on first LSL 10000 + 4% for value exceeding 10000

It is not unusual for a few people to hold a title to the same piece of land.

Agency: Registry of Deeds 		5 days (LSL 70 + 3% of purchase price over LSL 7,000) (Stamp Duty) + (LSL 300 + 4% of purchase price over LSL 10,000) (Transfer Duty) + LSL 2.50 (registration fee)
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