Tanzania

Registering Property in

Tanzania

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

This information 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 189 economies. The most recent round of data collection was completed in June 2014.

This year, Doing Business has collected new data in 170 economies on the overall quality of land administration systems through a set of indicators on reliability, transparency, coverage and dispute resolution. The new data is available under the “Methodology Expansion” tab, below. The data are preliminary and do not have any impact on the Ease of Doing Business 2015 rankings. This data may differ from what will be published in Doing Business 2016.

Compare Tanzania to 188 other economies.

  • Standard Property Transfer

  • Property value: TZS 55,109,995.9
  • City: Dar es Salaam
No. Procedure Time to Complete Associated Costs
1 Obtain an official search at the Land Registry
Agency: Registry of Titles

The seller must obtain the search of any encumbrance before starting the transaction formally. The document does not necessarily show all the owners of the property in the last 10 years.
7 days (simultaneous with Procedures 2, 3, and 4) TZS 40,000
* 2 Submit application letter to obtain evaluation at Ministry of Lands
Agency: Ministry of Lands

The seller can request the valuation report at the Ministry of Lands. The valuation report can will be prepared by the Ministry of Lands (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 • Land rent payment clearance for the current year (obtained in Procedure 3) • ID of the seller (citizenship, photo, if married and property is matrimonial property to prove spouse consent to the transaction) • 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
7 days (1 day to submit application + 6-day waiting period for evaluation appointment) (simultaneous with Procedures 1, 3 and 4 ) 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
* 3 Obtain land rent clearance from the Land Ministry showing payment of rents for the past 10 years
Agency: Land Ministry

The seller is required to obtain a land rent clearance from the Land Ministry, showing that all land rents have been paid for the past 10 years.
1 day (simultaneous with Procedures 1, 2, and 4) no cost
4 A government valuer inspects the property to confirm its value
Agency: Ministry of Lands

A government valuer 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 Valuer 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 Valuer.
7 days (1 day to complete valuation + 6-day waiting period for delivery of valuation report). Paid in Procedure 4
5 Notarization and execution of the sale agreement and preparation of the transfer deed
Agency: Notary

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.
1 day Approximately 3% of property value
6 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 • Original Land Rent receipt for the relevant year • Original Valuation Report • Original Valuation Approval receipt • Transfer forms • Forms 29 (form for Notification of a disposition) • Form 30 (form for Application of grant of approval for disposition) • 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 Minutes approving the disposition of the property in respect of the seller and Board minutes approving the purchase in respect of the buyer
14-21 days TZS 5,000 approval fee
7 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.
14-21 days Capital Gains tax is calculated as 10% of the amount gained by the Buying Company
8 The transfer deed is delivered to the Land Officer for its recording under the name of the buyer at the Lands Registry
Agency: Registry of Titles

Once approval has been obtained (see Procedure 8) the seller then pays the stamp duty and registration fees and also ensures that all the other taxes in respect of the property have been settled including Capital Gains Tax described in Procedure 9 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
14 days 1% of property value (Stamp duty) + Registration Fee as follows: registration fee (0.25% of the property value + 500 for the instrument)
  * Takes place simultaneously with another procedure.
Answer
Reliability/Land Registry
Are the records held in a paper format or in a computerized format? If they are computerized, are they scanned documents or fully digital documents? Paper
Is there an electronic database for checking for encumbrances (liens, mortgages, etc.)? no
Reliability/Cadastre
Are the maps held in a paper format or in a computerized format? If they are computerized, are they scanned documents or fully digital documents? Paper
Is there an electronic database to record property boundaries, check maps and provide cadastral information (Geographic Information System)? No
Reliability/Interconnection
Are the land registration agency and cadastre unified in one system under one agency, or is there a dual system of separate land registry and cadastre agency? If the latter, are the land registration agency and cadastre linked? Dual system/Not linked
Do the land registration agency and cadastre use the same identification number to search for properties? No
Transparency/Land Registry
Who is able to consult titles/deeds at the land registration agency? Please select all that apply Anyone
How can they be accessed? Please select all that apply In person
If online, please provide the link
Is the list of documents required to complete any type of property transaction made publicly available? Please select all that apply In person;On public boards;
If online, please provide the link
Is the applicable fee schedule for any property transaction at the land registration agency made publicly available? Please select all that apply In person;On public boards;
If online, please provide the link
Does the land registration agency provide service standards for any property transaction (e.g. 5 working days for a transfer)?Please select all that apply In person;
If online, please provide the link
Are there official statistics tracking the number of transactions at the land registration agency? No
If yes, are they made available to the public?
What is the source of these statistics?
Is there a complaints mechanism through a hotline, address, e-mail or other means? No
Please provide the contact information
Transparency/Cadastre
Who is able to consult maps/surveys? Please select all that apply Anyone
How can they be accessed? Please select all that apply In person
If online, please provide the link
Is the applicable fee schedule to get access to maps and surveys made publicly available? Please select all that apply In person;On public boards
If online, please provide the link
Is there a complaints mechanism through a hotline, address, e-mail or other means? No
Please provide the contact information
Coverage/Land Registry
Is every privately-owned land plot in the country formally registered at the land registry? No
Is every privately-owned land plot in the biggest business city formally registered at the land registry? No
Coverage/Cadastre
Is every privately-owned land plot in the country mapped? No
Is every privately-owned land plot in the biggest business city mapped? No
Disputes/Legal Background
Does the law require that all property sale transactions be registered at the land registry to make them opposable to third parties? Yes
What is the legal basis? Land Registration act Art. 1
Is the system of property transfer and land registration guaranteed by the state? Yes
What is the legal basis? Land registration act
Is there any compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the land registry? No
What is the legal basis?
Who is held responsible for verifying the identity of the parties to a property transfer? Please select all that apply Registrar
What is the legal basis? Art. 34 of Land registration act
Dispute Resolution
Does the law provide for specific mediation procedures for land disputes? No
If yes, what is the legal basis?
Does the law provide for any specific land dispute resolution mechanisms? No
If yes, what is the legal basis?
How long does it take on average to obtain a decision in a standard land dispute over a property transfer between two domestic businesses in the first instance? 2 years
Are there any statistics on the number of land disputes in the first instance? Not available
What is the source of these statistics?

  Please send any comments and inputs on the data above to rru@worldbank.org

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