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LAND REGISTRATION & TRANSACTIONS

September 2021

MUGABI John Bosco

119-053011-20244

0705872009

LLB, Islamic University In Uganda

Covers dealings in Land Registration,

Servitudes over Land, Leases, Mortgages, Condominium

Properties and Expropriated Properties in Uganda.

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TABLE CONTENTS

UNIT ONE: REGISTRATION OF LAND

1. Introduction…………………………………….

a. History of the Torrens Systems

b. Application of the system in Uganda

2. Essential features of Torrens System

a. Title by Registration & Effect of Unregistered Instruments

b. Indefeasibility of Title & its Exceptions

3. Protection by of Unregistered Interests (Caveat)

a. Definition of caveat

b. Lodging of caveat

c. Duration of caveat

d. Liability of wrongful lodgment of caveat

e. Termination of caveat

4. Remedies for Deprivation of Land

a. Ejectment

b. Damages
c. Compensation

UNIT TWO: SERVITUDES OVER LAND

1. Introduction

a. Definition of servitudes

b. Types of servitudes ( Easement, Profit aprendre, Restrictive Covenant,

License & Customary Rights)

2. Easements

a. Definition

b. Essential features of easement

c. Creation of easement

d. Termination/ discharge of easement

3. Profits A Prendre

a. Definition

b. Distinguish of Profit aprendre from Sale of Goods

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4. License

a. Definition

b. Types of License

5. Restrictive Covenant

a. Definition

b. Enforcement of Covenant at Common law and Equity

c. Scheme of development

d. Restrictive Covenant under RTA

e. Remedies for breach of Restrictive Covenant

f. Termination of Restrictive Covenant

6. Customary Rights

a. Definition

b. Enforceability of Customary rights


UNIT THREE: LEASES

1. General Introduction

a. Definition of lease and leasehold tenure

b. Distinction between lease and license

c. Classification of Leases

2. Essential features of a Lease

a. Duration

b. Exclusive possession

3. Creation of a Lease

a. By contract

b. Tenancy by estoppel

c. Registration and effect of unregistered Lease

4. Conditions & Covenants (Rights & Obligations of Landlord & Tenant)

a. Definition of Condition and Covenant

b. Express covenant

c. Covenant implied under general law against the landlord (quiet

possession, non-derogation from grant, fitness for human habitation).

d. Covenant implied against the tenant

e. Covenants implied under the RTA

5. Sublease & Assignment

a. Definition of sublease and assignment

b. Enforcement of covenant in a lease and sublease

c. Registration of transfer of a lease

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d. Assignment of a reversion

6. Remedies for breach of contract ( Landlord and tenant remedies)

a. Damages

b. Injunction
c. Termination of lease

d. Mesne profit

e. Distress for rent

f. Forfeiture

g. Relief from forfeiture

h. Waiver of forfeiture

7. Termination of a Lease

a. Forfeiture

b. Effluxion of time

c. Notice to quit

d. Surrender

e. Merger

UNIT FOUR: MORTGAGES

1. Introduction

a. Definition of Mortgage

b. Definition of Mortgage deed and Deed of Release

c. Laws governing Mortgage in Uganda

d. Distinction of Mortgagee and Mortgagor

2. Creation of a Mortgage

a. Equitable Mortgage

b. Registered Mortgage

c. Mortgage on customary land and tenancy by occupancy

3. Rights of Mortgagor

a. Right of redemption

b. Right to transfer to the third party

c. Right to inspection and production of documents

d. Right to redeem separately or simultaneously

e. Right to accession

f. Right to grant a lease


g. Right in case of a waste

4. Liabilities of Mortgagor

a. Covenant for the title

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b. Covenant for the defense of title

c. Covenant for payment of public charges

d. Covenant for payment of rents\covenant for the discharge or prior

mortgage

5. Rights of Mortgagee

a. Right to foreclosure of sale

b. Right to sue for mortgage money

c. Right to sell

d. Right to appoint Receiver

e. Right to accession

f. Right of renewal of mortgaged lease

g. Right of mortgagee to spend money

h. Right to proceeds of revenue sale or compensation on acquisition

6. Liabilities of Mortgagee

a. Mortgagee bound to bring one suit on several mortgages

b. Liability of mortgagee in possession

7. Equity protection of Mortgagor

a. Equity maxim

b. Collateral advantage

c. Judicial intervention

UNIT FIVE: CONDOMINIUM PROPERTY

1. Introduction

a. Definition of Condominium

b. Historical development of Condominium


c. Law governing condominium in Uganda

2. Division of Building into Units & their Registration

a. Condominium plan ( Section 2)

b. Division of building into units and their registration (Section 8)

c. Registration of condominium plans & units ( Section 3,10,11,16)

d. Change of use of units ( Section 8)

e. Requirement for Condominium plan

f. Forms of register of Condominium plan

3. Management & use of Condominium Property

a. Common Property & Corporation (S.21,22)

b. Establishment of Corporation ( Section 19)

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c. Easement in Condominium Property (Section 14,15,16 & 17)

d. Termination of a condominium status of property [S. 25,48,49]

4. Pros and Cons of Condominium Property

a. Pros

- Better land utilization

- No maintenance worry

- Condominiums are secure with security

- Luxury amenities

- They are affordable

- Promotes price competiveness

- Proximity to city life

- Cheaper insurance

- Great sense of community

b. Cons

- Low privacy factor

- Payment of homeowner association fee


- There are rules to follow in condos

- Potentially mismanaged funds

- Difficulty to sell

- No outdoor space

- Pet restrictions

- Limited parking

- Lack of storage facilities

UNIT SIX: EXPROPRIATED PROPERTY

1. Historical background of expropriated property

a. Asian economic dominance

b. Corrective measures

2. The Expropriation

a. Cancelation of entry permits

b. Prohibition of new liabilities

c. Declaration of assets

d. Agents of sale of properties to Ugandan citizen

e. Vesting the properties in the board and government

f. Constitutionality of the expropriation

g. Management of expropriated property

h. Compensation to departed Asians

3. Reversing the Expropriation

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a. The pressure for repossession

b. Purpose of expropriated properties Act 1982

c. Properties to which the Act applies

d. Re vesting of property in the government and nullification of dealings

e. Dealings by the minister

f. Dealing with encumbered properties


g. Compensation to departed Asians

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UNIT ONE: REGISTRATION OF LAND

THE TORRENS SYSTEM OF LAND REGISTRATION1

a. History of the Torrens Systems

Torrens title is a system of land title where a register of land holdings maintained

by the state guarantees indefeasible title to those included in the register. The

system was formulated to combat the problems of uncertainty, complexity and

cost associated with old system title, which depends on proof of an unbroken

chain of title back to a good root of title. The Torrens title system was introduced

in South Australia in 1858, formulated by then colonial Premier of South Australia

Sir Robert Torrens. Since then, it has become pervasive around the Commonwealth

of Nations and very common around the globe. In the United States, only Iowa has

all its land under the Torrens system; other states with a limited implementation

include Minnesota, Massachusetts, Colorado, Georgia, Hawaii, New York, North

Carolina, Ohio and Washington.

The Common law

At common law, land owners needed to prove their ownership of a particular piece

of land back to the earliest grant of land by the Crown to its first owner. The

documents relating to transactions with the land were collectively known as the

"title deeds" or the "chain of title". This event could have occurred hundreds of

years prior and could have been intervened by dozens of changes in the land's

ownership. A person's ownership over land could also be challenged, potentially

causing great legal expense to land owners and hindering development.

Even an exhaustive search of the chain of title would not give the purchaser

complete security, largely because of the principle nemo dat quod non habet ("no

one gives what he does not have") and the ever-present possibility of undetected

outstanding interests. For example, in Pilcher v Rawlins (1872) the vendor


conveyed the fee simple estate to P1, but retained the title deeds and fraudulently

purported to convey the fee simple estate to P2. The latter could receive only the

title retained by the vendor - in short, nothing. The case referred to here was

actually decided in favour of the subsequent purchaser of the legal title, over the

owners of the equitable title. The courts of equity could not bring themselves to

decide against a totally innocent (without notice) purchaser. (Pilcher v Rawlins

1 This Article was downloaded from www.wikipedia.com

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(1872) 7 Ch App 259, Court of Appeal, viewed in Bradbrook, MacCallum and Moore,

2007, Australian Property Law; Cases and Materials, Lawbook Co., NSW)

The common law position has been changed in minor respects by legislation

designed to minimise the searches that should be undertaken by a prospective

purchaser. In some jurisdictions, a limitation has been placed on the period of

commencement of title a purchaser may require.

Deeds registration

The effect of registration under the deeds registration system was to give the

instrument registered "priority" over all instruments that are either unregistered or

not registered until later. The basic difference between the deeds registration and

Torrens systems is that the former involves registration of instruments while the

latter involves registration of title.

Moreover, though a register of who owned what land was maintained, it was

unreliable and could be challenged in the courts at any time. The limits of the

deeds registration system meant that transfers of land were slow, expensive, and

often unable to create certainty of title.

Creation of the Torrens system

In order to resolve the deficiencies of the common law and deeds registration

system, Robert Torrens introduced the new title system in 1858, after a boom in

land speculation and a haphazard grant system resulted in the loss of over 75% of
the 40,000 land grants issued in the colony (now state) of South Australia. He

established a system based around a central registry of all the land in the

jurisdiction of South Australia, embodied in the Real Property Act 1886 (SA). All

transfers of land are recorded in the register. Most importantly, the owner of the

land is established by virtue of his name being recorded in the government's

register. The Torrens title also records easements and the creation and discharge

of mortgages.

The historical origins of the Torrens title are a matter of considerable controversy.

Torrens himself acknowledged adapting his proposals from earlier systems of

transfer and registration, particularly the system of registration of merchant ships

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in the United Kingdom. James E. Hogg, in Australian Torrens System with Statutes

(1905), has shown that Torrens derived ideas from many other sources and that he

received assistance from a number of persons within South Australia. Stanley

Robinson, in Transfer of Land in Victoria (1979) has argued that Ulrich Hübbe, a

German lawyer living in South Australia in the 1850s, made the most important

single contribution by adapting principles borrowed from the Hanseatic

registration system in Hamburg.

Nevertheless, it cannot be denied that Torrens' political activities were

substantially responsible for securing acceptance of the new system in South

Australia and eventually, in other Australian colonies and New Zealand. He oversaw

the introduction of the system in the face of often vicious attack from his

opponents, many of whom were lawyers, who feared loss of work in conveyancing

because of the introduction of a simple scheme. The Torrens system was also a

marked departure from the common law of real property and its further

development has been characterised by the reluctance of common law judges to

accept it.

Overview of the Torrens system


The Torrens title system operates on the principle of title by registration (i.e. the

indefeasibility of a registered interest) rather than registration of title. The system

does away with the need for a chain of title (i.e. tracing title through a series of

documents). Each parcel of land is given a separate folio in the register and is

identified by reference to a registered plan. The folio records the dimensions of

the land and its boundaries, the names of the registered proprietors, and any legal

interests that affect title to the land. The State guarantees title and is usually

supported by a compensation scheme for those who lose their title due to its

operation.

The Register

The land register is the central aspect of the Torrens system. Originally the register

was a bound paper record, but today the register consists of computer

information.

On the first registration of land under the system, the land is given a unique

number (called a folio) which identifies the land by reference to a registered plan.

The folio records the dimensions of the land and its boundaries, the name of the

registered owner, and any legal interests that affect title to the land. To change the

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boundaries of a parcel of land, a revised plan must be prepared and registered.

Once registered, the land cannot be withdrawn from the system.

A transfer of ownership of a parcel of land is effected by a change of the record on

the register. The registrar has a duty to ensure that only legally valid changes are

made to the register. To this end, the registrar will indicate what documentation he

or she will require to be satisfied that there has in fact been a change of ownership.

A change of ownership may come about because of a sale of the land, or the death

of the registered owner, or as a result of a court order, to name only the most

common ways that ownership may change. Similarly, any interest which effects or

limits the ownership rights of the registered owner, such as a mortgage, can also
be noted on the register. There are legal rules which regulate the rights and powers

of each of these interests in relation to each other and in relation to third parties.

The State guarantees the accuracy of the register and undertakes to compensate

those whose rights are adversely affected by an administrative error. Claims for

compensation are very rare.

Between 1908 and 1922, there were efforts to establish a comprehensive titling

system in Uganda. It culminated into the enactment of the Registration of titles

Ordinance no 2/22. It never came into force immediately. It was extensively

amended in 1923 by ordinance 12 and it came into force in 1924.

Initially, it was then said that our law would be based on the South Australian

statute but eventually our law was modeled on the transfer of land Act of the state

of Victoria.

It was then the most modern in Australia then. The statute operated for about 14

years and had some problems as seen by the administration. In 1937, a study was

commissioned by government headed by Shepherd and came up with a report on

survey and titling system in Uganda in 1938. He was quite critical on the Australian

law on which our statute was based. He thought that it was obtuse* and illegal

phraseology and the most complicated machinery of record to be found in

Australia. In his view, it was unfortunate that such legislation was chosen as a

model for Uganda. Shepherd reasoned that the different law was necessary for each

of the Australian states. It followed that no particular Australian Act would suit

another country and he added far less a primitive African country like Uganda. In

his view, there was no state of difference between Victoria and Uganda in terms of

laws, customs, size, so the law was inappropriate for Uganda.* He advocated for a

simple ordinance based as far as possible on local custom adopted to the

conditions of life in Uganda and readily understood by African land owners.

Unfortunately, these proposals of a simple ordinance tailored around local

customs were not embraced.

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Three principles of Torrens system

The Torrens system works on three principles:

Mirror principle - the register (Certificate of Title) reflects (mirrors) accurately and

completely the current facts about a person's title. This means if a person sells an

estate; the new title has to be identical to the old one in terms of description of

lands, except for the owner's name.

Curtain principle - one does not need to go behind the Certificate of Title as it

contains all the information about the title. This means that ownership need not be

proved by long complicated documents that are kept by the owner, as in Private

Conveyance system. All the necessary information regarding ownership is on the

Certificate of Title.

Insurance principle - provides for compensation of loss if there are errors made

by the Registrar of Titles. Note that this is not relevant to oil companies due to

maximum claims.

Application of then Torrens system in uganda

The first step was establishment of the office of titles. The system is administered

by the office of titles. S.3 of the RTA, Registrar of Titles is to be appointed hence

the charge and control of the office of titles. He is assisted by a deputy and other

registrar. S.3 (2) these officers are public officers like any other.

S.4 requires all courts, judges and persons acting as judicial officers to take

judicial notice of the signature of the registrar.

S.5 office of titles has to have a seal that fits the description set up in that section

and all certificates of title and other documents purporting to be sealed with such

seal and signed by the registrar. If a fact has to be proved and a certificate of title

is given without seal, it is taken to be proven unless the other party proves

otherwise i.e. contrary evidence is adduced by the other party.

The office of titles established branches – mailo office in Mukono, Mityana and

Masaka, Rukingiri, Kabale, Mbarara and Fort portal to register land granted under
the Toro and Ankole agreements- native freeholds.

Under the land Act, there would be distinct registries- s.60 (6) Land Act.

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2nd establish land register itself. S.37 (1) register is obliged to keep a register book

where he/she registers all titles and particulars of their dealings in priority; it may

not be practical to keep a real book. S.37 (2)(a) provides for the register to have a

loose leaf.

You can keep it in two parts, relating it to districts, counties or any geographical or

any geographical area. In practice a register is kept in loose leaf and each loose leaf

is given a number as a folio and 25 folios constitute a volume, for a seal, you’ll

meet freehold registration volume 1 folio 1.

The mailo register is also kept in loose leaf and is grouped in blocks and plots.

Each county e.g. Busiro, Kyagwe, Kyadondo would be broken into blocks e.g. block

1. The loose leaf certificate of titles end up as a registry book consequently.

Authenticity of this is from s.38(1) this is when the registrar endorsed it as a

volume and a folio number or plot and block number because this is the

identification of each piece of land.

s.38(1) prescribes the form of certificate of title to that as provided in the third

schedule of the Act, basically there are three variants whichever one chooses, a

certificate of tile has three parts.

Part 1 Description of the property i.e. volume and folio references/ the plot and

block numbers where the property is situated. It will also give the physical element

in terms of measurement. It also gives the tenure of the land, lease mailo etc.

Part2. This deals with proprietorship (ownership), here you will see the name and

address of the property (required by s.38 (3)). You will know the date on which

ownership was acquired and the number of the instrument under which the

proprietorship was acquired.

Part 3 This part deals with encumbrances i.e. interests and claims which burden
the rights of the proprietor things that reduce the value of the owners interests,

mortgages, caveat e.g. it shows details of the encumbrance and particulars, date

and instrument number of registered etc.

There must be a seal of the office of titles. The seal must be endorsed on the

certificate of title. S.53. Subsequent endorsement of certificate of titles discharges

must be endorsed on the title under the signature of the registrar. Under s.48 and

49, once an instrument is registered, you don’t only endorse the entry on the

certificate of title but the registrar must also endorse memoranda on the

instrument to show that it has been entered in the register. When an instrument is

presented for registration e.g. mortgage, it is given a number and time of

presentation e.g. 10.00 AM 26/03/02. It may not be signed immediately. It could

even be after a week for purposes of priority. S.42 says that the effective date of

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registration was when it was given a number so that if ¾ documents are brought

differently, they follow that priority.

Under S.55, the proprietor of land is entitled to be issued with a certificate of

title/COT and if he is a minor/ under a disability, the registrar should state the age

of the minor or the state of disability to protect them. If you want to subdivide

land you can surrender your certificate under s.67 and you are issued with others.

Sometimes, people lose their duplicate certificate. S.67 provides for insurance of

special certificates of tile after following procedure in s.67. It is also possible to

issue a COT under s.68 where the land has been sold pursuant to court order and

certificate has not been surrendered.

The legislature also envisaged misplacement or mismanagement of files by public

servants and thus loses of COT making the register useless.

S.71 RTA authorizes the replacement of the original title in case it goes missing.

This is called a substitute title. There are four types of title.

1. Original – Register book kept in office of titles.


2. Duplicate – owner/ issued to proprietor.

3. Substitute- given when original is lost s.71

4. Special – given when duplicate is lost s.67

COT is important in terms of the law because once issued, it is conclusive evidence

of title. S.56

Title by registration

Under the Torrens system, interests in land are created or transferred not be

execution of documents as under the Common law but by registration in the

manner prescribed by RTA. Section 54 stipulates that an instrument purporting to

confer an interest in land is not effective to pass any estate or interests in land or

bind the land by way of mortgage until the instrument is registered as provided

by the Act. Read: Ndigejjerawa vs. Isaka Kizito and Sabane Kubulwamwana

(1953)7 ULR 31; where the Court of Appeal observed that no document or

instrument can be registered unless it fulfills the statutory requirements is

effective to transfer and interest in land until it is registered.

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It is only upon the registration of the instrument that the state or interest in the

land passes and the land becomes liable and subject to the covenants and

conditions set forth in the instrument.

The RTA provides that a registered proprietor of any estate or interest in land

wishing to transfer, create an easement, lease or mortgage may do so by

completion of relevant prescribed forms as per the Act. Any instrument for

transfer or registration of interest must first be signed by the proprietor and

witnessed and presented to the Registrar together with the duplicate certificate of

title, plus such other documents or consents as may be required by law. It is only

after proper documentation has been submitted and payments made that the

instruments can be registered in the centralized register book and on the

duplicate title certificate.


THE EFFECT OF Unregistered instruments

The RTA states the no estate or interest can be created or transferred until the

instrument is registered in the manner provided for by the Act. Read: Section 54.

However, the RTA does not deny registered instruments/ transactions legal

efficacy. Read: Berry vs. Heider & Another (1914)19 CLR 197: Souza Figueiredo

& Co. Ltd vs. Mooring Hotel Co. (1960) E.A 926. It discusses the nature and

effect of unregistered instruments under the RTA. The appellant refused to pay

rent claiming that the tenancy was not effective in law because the landlord did

not register.

The Court in this case observed an unregistered instruments executed by the

parties constitutes a contract inter parte and they are bound by its terms.

It is now commonly taken from the position of the above case that an unregistered

lease constitutes a contract inter parte as observed in the following cases and not

an equitable lease. City Council of Kampala vs. Mukibi (1967) E.A 368 &Somalia

Democratic Republic vs. Anoop Syndirial Treon CA No. 4 of 1988

On the contrast however, there are several cases where the courts have held that

an equitable interest is created by virtue of the contract between the parties. In

Katarikawe vs. Katwiremu and Another [1977] HCB 187, Sekandi J held that

though in a contract of sale of land an unregistered instrument of transfer is not

effective to transfer title, the purchaser acquires an equitable interest in the land

which is enforceable against the vendor. Read: Alibhai & Another. vs. Karia &

Another CA No. 53 of 1995 where the Supreme Court observed that;

“After the contract of sale, property in the suit property passed to the first

respondent, who obtained the equitable estate thereto and retained it after

the appellants left Uganda. The appellants in whom the legal estate remained

become trustees of the first respondent and where under a duty as such to

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transfer the legal estate in the suit property to the respondents on


completion of the contract. It is that legal estate, in my view which vested in

the (Board).”

It is therefore very important to note that whereas the RTA does not recognize an

unregistered instrument, case law treats it as a contract between parties and

enforceable. The provisions of the RTA do not avoid the contract behind the

instruments or render it in operative. It is that contract and not the instrument

which is rendered as effective in accordance with the principles of the equity so

as to bring into existence an interest in land as intended by the parties in the

agreement.

INDEFEASIBILITY OF TITLE

Indefeasibility of title applies to the registered proprietor or joint-proprietors of

land. Different States have different laws and provisions.

It is the second most essential feature of the tenure system. It means that once a

person is registered as a proprietor of an estate or interest in land, the

government guarantees his/her title cannot be diverted or attacked by rival claims

to the land except as prescribed under the Registration of Titles Act.

The word indefeasibility of title is not used in the RTA but it is derived from the

various sections which protect the titles from impeachment once registered.

Upon registration of his interest and subsequent recording on Title of his interest,

the registered owner's claim to his interest in that land is superior to all other

interests in the land other than the circumstances summarized below.

The registered interest holder will be free from all encumbrances other than inter

alia:

 THOSE listed on the title;

 THOSE claiming the land on a prior folio;

 WHERE the land is included by wrong description on the part of the Registrar and

the proprietor is not or has not derived title from a purchaser ‘for value’;

 PARAMOUNT interests - these interests, although even possibly unregistered, are

'superior' to interests that are registered.


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Additionally, there exist exceptions or circumstances that can 'penetrate' the

indefeasibility. Common factors that, when evidenced by a party may penetrate and

defeat the registered holder's claim include:

 FRAUD - where fraud is committed by the registered interest holder [principle of

immediate indefeasibility];

 IN PERSONAM - where it can be shown that there was some contractual promise

or undertaking by the registered party vis-a-vis the unregistered party.

 INCONSISTENT LEGISLATION - where legislation is enacted after the Torrens

legislation is inconsistent with the Torrens legislation, the later piece of

legislation will prevail;

 VOLUNTEER - where the registering party acquires the interest for no

consideration (e.g. bequeathed in a will). Note, contrast with Victorian law, in

NSW volunteers will become indefeasible.

Indefeasibility of title in details

Section 59 on Certificate of titles as conclusive evidence of ownership, Section 64

on the fact that the estate and the interest of a registered proprietor is paramount

and prevails over all other unregistered interests or estate except as stated in the

Act.

Sections 181 & 176 of the RTA on the protection of a registered proprietor

against any action for the ejectment or damages. Except as stated in the RTA,

production by a person of a certificate of title in his/her name is deemed to be an

absolute bar and estoppel against any legal action. Read: Kampala Bottlers Ltd Vs

Damanico (U) Ltd C.A No. 22 of 1992. Also in Breskvar & another V Wall [1971]

126 CLR 376

There are two main objectives of the principle of indefeasibility:-

a. To protect the title of the registered proprietor from unregistered interests.

b. To save the persons dealing with the registered land from the trouble and
expense of going behind the register book in order to investigate the validity

of the title or possible invalidate claims to the land and thus simplify and

expedite the process of transfer.

Read: Lwanga Vs the Registrar of Titles (1980) HCB 24; it was observed that one

of the paradoxes of registered conveyance is that through registration obtained by

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fraud is void, it is capable of becoming of good root of title to a bona fide

purchaser for value.

Read:

 Olinda De Souza Vs Kassamali Namji (1962) E.A 756

 Nazarali Hasanali Sayani Vs Edward Mperese Nsubuga C.S No. 364 of 1993

Exceptions to the principle of indefeasibility of title

It is worth noting that the principle of defeasibility under the Torrens system is

not absolute and is subject to several exceptions both within the RTA, other

statutes and by the exercise of the inherent jurisdiction of courts. Section 64 of

the RTA provides for several exceptions to the indefeasibility principle among

others as stated below:-

a. Encumbrances notified on the folium: a registered proprietor takes his/her

title on subject to estate or interests which are endorsed on the register book

and certificate of title at the time of the purchase. If the land is subject to a

mortgage, he/she shall ascertain the amount that is outstanding for obviously

it would affect the value of the land.

b. Fraud: the title of a registered proprietor is indefeasible except In the case of

fraud. Such fraud must be proved to as orchestrated by the registered

proprietor and it should be attributable to him/her. The fact that a registered

proprietor bought land from a rogue or a person who acted fraudulently in

transferring the land does not mean the transferee’s title was acquired

through fraud.
Read:

 Lusweswe Vs Kasule and Conlibally

 Hotel international ltd Vs the administrator of the Estate of the Late Robert

Kavuma

Read: Musisi Vs Grindlays Bank (U) ltd & Ors in which Court observed that a

person registered through fraud is one who becomes registered proprietor through

fraudulent act by him or to which he is a party or with full knowledge of fraud.

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All courts agree that the transferee must be guilty of the same fraudulent act or

must have known of such act by somebody else and taken advantage of such act.

The proprietor must have gained registration through participation in fraud.

Read:

 Kampala Bottlers Ltd Vs Damanico (U) ltd

 Rurangaranga Vs Mbarara municipal council.

What is fraud then?

Note that the Act does not provide definition. Fraud in the Torrens system means

actual fraud. It means dishonesty of some sort or desire to cheat on the part of the

proprietor whose title is being challenged.

Fraud has been defined in numerous legal authorities. Kerr on the Law of Fraud

and Mistake 5th edition part 1 page 1: states that civil courts of justice have

always avoided hampering themselves by defining or laying down as a general

proposition what constitutes fraud.

Fraud is infinite in variety with the ever dynamic operations of mankind. Thus Kerr

defined fraud in the contemplation of a civil court of justice to include all acts,

omissions, and concealments which involve a breach of legal or equitable duty, trust

or confidence, justly reposed, and are injurious to another, or by which an undue or

unconscientiously advantage is taken of another. All surprise, trick, cunning,

dissembling and other unfair way that is used to cheat anyone. Fraud in all cases
implies a willful act on the part of anyone, whereby another is sought to be

deprived, by illegal or inequitable means, of what he is entitled to.

In the American authority of Husky International Electronics, Inc vs. Ritz No. 15–

145of 2016 the Supreme Court of United States of America expanded the meaning

of actual fraud as encompassing fraudulent conveyance schemes that can be

affected without a false representation. Such fraudulent conveyances typically

involve a transfer to a close relative, a secret transfer, a transfer of title without

transfer of possession or grossly inadequate consideration

Supreme Court decision of Frederick J. K. Zaabwe versus Orient Bank & 5 Others;

SCCA NO. 4/2006; for the definition of fraud thus;

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“Fraud, according to Black’s Law Dictionary 6th Ed. at page 660, means an

intentional perversion of truth for the purpose of inducing another in reliance

upon it to part with some valuable thing belonging to him/her or to surrender

a legal right and fraudulent means acting wilfully and with specific intent to

deceive or cheat, ordinarily for purposes of either causing some financial loss

to another or bringing about some financial gain to oneself”.

This case further defined fraud to mean;

“Anything calculated to deceive, whether by a single act culmination, or by

suppression of truth, or suggestion of what is false, whether it is by a single,

direct falsehood or the innuendo by speech or silence, word of mouth, or look

or gesture …….. a generic term embracing all multifarious means which

human ingenuity can devise and which are resorted to by one individual to

get advantage over another by false suggestions or by suppression of truth

and includes all surprise, trick, cunning, dissembling an any unfair way by

which another is cheated. . “Bad faith” and “fraud” are synonymous, and

also synonymous of dishonesty, infidelity, faithfulness, perfidy, unfairness,

etc.
As distinguished from negligence, it is always positive, intention. It comprises

all acts, omissions and concealments involving a breach of a legal or

equitable duty and resulting in damage to another. And includes anything

calculated to deceive, whether it be a single act or combination of

circumstances, whether the suppression of truth or the suggestion or what is

false whether it be by direct falsehood or by innuendo, by speech or by

silence, by work or mouth, or by look or gesture……” ”

Further in Kampala Bottlers Ltd vs. Damanico (U) Ltd, SCCA No.22 of 1992, it was

also held that fraud must be strictly proved, the burden being heavier than one on

balance of probabilities generally applied in civil matters. It was held further held

that;

“The party must prove that the fraud was attributed to the transferee. It must

be attributable either directly or by necessary implication, that is; the

transferee must be guilty of some fraudulent act or must have known of such

act by somebody else and taken advantage of such act.”

This court will be guided by principles enunciated in these decisions in the

evaluation of the evidence in this case. Section 59 of the Registration of Titles Act,

Cap 230, provides to the effect that a certificate of title is conclusive evidence of

ownership. Also under Section 64 (1) RTA the estate of a registered proprietor is

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paramount and is indefeasible except in case of fraud. Further, Section 176 (c) RTA

accords protection to a registered proprietor on registered land from ejectment

except on grounds of the fraud attributable to the registered proprietor.

Section 141 RTA also provides that;

“So long as any caveat remains in force prohibiting any registration or

dealing, the registrar shall not, except in accordance with some provision of

the caveat, or with the consent in writing of the caveator, enter in the Register

Book any change in the proprietorship of or any transfer or other instrument


purporting to transfer or otherwise deal with or affect the estate or interest in

respect to which that caveat is lodged.”

In the case of Nabanoba Desiranta & Another vs. Kayiwa Joseph & Another, HCCS

No. 496 of 2005 quoting the case of UP&TC vs. Abraham Katumba [1997] IV

KALR 103, it was held that as the law now stands, a person who purchases an

estate which he knows to be in occupation and use of another other than the

vendor without carrying out the due inquiries from the persons in occupation and

use commits fraud.

Further citing Taylor vs. Stibbert [1803 – 13] ALL ER 432, the court held that the

failure to make reasonable inquiries of the persons in possession and use of land

or the purchaser’s ignorance or negligence to do so formed particulars of fraud.

Similarly, in the case of Hajji Nasser Katende vs. Vithalidas Halidas & Co. Ltd.,

CACA No.84 of 2003 citing the case of Sir John Bageire vs. Ausi Matovu, CACA

No.07 of 1996, at page 26, Kikonyogo, DCJ, quoting Okello JA. (as he then was)

emphasized the value of land property and the need for thorough investigations

before purchase, and held inter alia that;

“Lands are not vegetables that are bought from unknown sellers. Lands are

valuable properties and buyers are expected to make thorough investigations;

not only of the land but of the sellers before purchase.”

Waimiha Saw Milling Co. Ltd v. Waione Timber Co. Ltd (1926) A.C 101 at page

106, quoting Lord Buchmaster that fraud implies some act of dishonesty. I believe

these authoritative definitions exhaustively encapsulate all aspects of what

constitutes fraud.

Secondly, in David Sejjaaka v. Rebecca Musoke, Civil Appeal No. 12 of 1985, it

was held that fraud must be attributable to the transferee, either directly or by

necessary implication. The transferee must be guilty of some fraudulent act or

must have known of such act by somebody else and participated in it or taken

advantage of it.

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Thirdly, in J.W.R Kazzora v. M.L.S Rukuba, S.C.C.A No. 13 of 1992, it was held

that fraud must be specifically pleaded and strictly proved and cannot be left to be

inferred from the facts.

In Matovu & 2 others vs Ssenviri and another [1979] HCB 187, it was held that

when a person Procures Registration to defeat unregistered interest of others,

then such person is guilty of fraud. It therefore follows that once such fraudulent

registration is found out, then the Certificate in respect thereof is null and void

and has to be cancelled under Section 177 of the R.T.A.

What remedies are available to the parties?

Section 177 RTA provides that;

“Upon the recovery of any land, estate or interest by any proceeding from the

person registered as proprietor thereof, the High Court may in any case in

which the proceeding is not herein expressly barred, direct the registrar to

cancel any certificate of title or instrument, or any entry or memorial in the

Register Book relating to that land, estate or interest, and to substitute such

certificate of title or entry as the circumstances of the case require; and the

registrar shall give effect to that order.”

Section 27(2) of the Civil Procedure Act Cap 71 provides to the effect that costs

shall be in the discretion of the court and shall follow the event unless for good

reasons court directs otherwise.

Section 59 of the RTA to argue that possession of a Certificate of title by a

registered person is conclusive evidence of ownership of land described therein.

He also referred to Section 176 (c) of the RTA to argue that a registered proprietor

of land is protected, save for fraud ‘fraud’. He referred to cases of John

Katwiremu & Anor (1977) HCB 187, and Mudiima Issa & 8 Others versus Elly

Kayanja & 2 Others; Civil Suit No. 232/2009 for emphasis of the holding that

under Section 61 (now 59) of the Registration of Titles Act, once a person is

registered as proprietor of land, his title is indefeasible except for fraud.


Counsel argued that no evidence implicating the Defendant in forgery of the

documents was led in Court. He referred to case law including Mayanja J. B

versus Lawrence Maggato Guta; HCT CS NO. 727/2006, to argue that fraud must

be proved by evidence, not by submissions based on pleadings. The Plaintiff’s

Counsel argued for the dismissal of the counterclaim on grounds above.

In reply, Counsel for the Defendant/Counter claimant referred to Section 101(1) of

the Evidence Act to argue the law applicable on the standard of proof. He argued

that it is provided therein that whoever desires any Court to give Judgment as to

any legal right or liability dependent on the existence of facts which he or she

asserts must prove that those facts exists. He also referred to the authority of

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Frederick J. K. Zaabwe versus Orient Bank and 5 Others SCCA No. 4/2006 for the

definition of fraud. He then referred to the evidence of Kiwanuka Joseph (DW2, as

evidence which proved that the suit land still belongs to the estate of the late

Stanley Kitaka Kisingiri and the transfer of the same into the Plaintiff’s names was

done fraudulently and illegally.

He referred to the authority of Edward Gatsinzi & Mukasanga Ritah versus

Lwanga Steven; Civil Suit No. 690/2004, which inferred fraud from an illegality.

Edward Gatsinzi& Mukasanga Ritah versus Lwanga Steven (supra) to re-echo the

Hon. Judges’ Ruling that;

“Where sale of land is involved, the purchase cannot be by mere presumption,

there must be actual purchase with written memorandum or not duly signed

by the parties, and the failure to prove the same would render the said claim

baseless”.

Finally, on the illegalities above, Counsel referred to the authorities of Konde

Mathias Zimula versus Byarugaba Moses and Grace Nampijja HCCS NO.

66/2007, that;

“Courts of Justice will not allow a person to keep an advantage which he


obtained in bad faith……..”

National Social Security Fund & Anor versus Alcon International Ltd. SCCS

No.15/2009 when Odoki CJ (as he then was) held that;

“One of the principles of law is that as long as there is an illegality, it can be

raised at any time as a Court of law cannot sanction that which is illegal”.

In Uganda Railways Corporation vs Ekwaru & others [2008] HCB 61, it was held

that a trial Judge has a duty to use a judicial microscope to see all those

illegalities that may not be seen by ordinary eyes of parties, including those of

their counsel who may not have seen it. So even if some irregularities were not

pleaded, it is the duty of this court to use its judicial microscope to point out those

irregularities in the interests of justice.

The burden to prove the alleged fraud however falls on he who alleged it (Per

Section 103 of the Evidence Act). Any person who puts up a defence of being a

bona fide purchaser has the burden of proof to adduce evidence that establishes

that he or she is actually a bona fide purchaser for value without Notice of any

fraud. He must prove the following elements of this defence:-

(a) That he has a valid Title from a person registered as a proprietor.

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(b) Must have paid valuable consideration.

(c) Must have acted in good faith without Notice of fraud whether actual or

implied.

See David Sejjaka vs. Rebecca Musoke Supreme Court, Civil Appeal No. 12 of 1985.

The learned Author, L. VOUMARD Q.C. in SALE OF LAND IN VICTORIA, 2nd Edition

page 402 stated:

“The duty of a purchaser or a mortgagee to investigate the Title is not a duty

owing to the holder or the possible holder of a latent Title or security. It is a

merely the course which a man dealing bona fide is proper and usual manner

for his own interest ought by himself or his solicitor to follow that course the
omission of it may be a thing requiring to account for or explained. It may be

evidence of a design inconsistent with what a bona fide dealing to avoid

knowledge of the true state of Title... a purchaser who knows that the property

purchased is in occupation of some person other than the Vendor is affected

with constructive notice of the right of the occupier but if he registers a

conveyance without making further inquiries he will lose the benefit of

registration only if in the circumstances of the case abstention from inquiry

evidences a want of good faith.”

The law has not been static and the duty to do due diligence in the designs of

fraud requires the intending purchaser to do more than merely looking at the

Certificate of Title but to investigate the validity of the Title. The mischief of

fraud and elements of fraud have overtime mutated to involve the Registrars of

Titles.

Sir John Bageire vs. Ausi Matovu C.A. NO. 7 OF 1996 (C.A.U.)

The Court of Appeal considered what was expected, in that case, to discharge the

burden of proving the plea of being a bona fide purchaser for value without Notice

and His Lordship G. M. OKELLO, J. A, (as he then was) stated:-

“It must be noted that Lands are not vegetables which are bought from

unknown sellers. Lands are very valuable properties and buyers are expected

to make thorough investigations not only of the land but also of the owner

before purchase.”

In order for one to seek the protection of Section 181 (supra), he/she must

prove that he/she is a bona- fide purchaser. The purchaser must act in good

faith, ought to have given due consideration and purchased the land without

notice of the fraud. Such notice covers both actual knowledge and

constructive notice of the fraud. In Jones vs. Smith (1841) 1 Hore the

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Chancery Court held that: a purchaser has constructive notice of a fraud if he


had actual notice that there was some encumbrance and a proper inquiry

would have revealed what it was, has abstained either deliberately carelessly

from making those inquiries which a prudent purchaser would have made.

The law as per the case of Makula International Ltd. versus His Eminence Cardinal

Nsubuga & Anor (1982) HCB 11, is that Courts of Law cannot sanction what is illegal

and an illegality once brought to the attention of the Court, overrides all questions

of pleadings including admissions made thereon. This same position was re-

emphasised by the Supreme Court in the case of National Social Security Fund and

Another versus Alcon International Ltd SCCA No. 15/2009, when CJ Odoki (as he

then was) observed inter-alia that;

“One of the principles of law is that as long as there is an illegality, it can be

raised at any time as a Court of Law cannot sanction that which is illegal.

Counsel for the Appellant maintains that the Arbitral award was procured by

fraudulent means which is an illegality, which this Court must act upon!

Basing myself on the above authority, I find that the evidence raises issues

which boarder on fraudulent acquisition of the title by the Plaintiff, using

illegal or unexplained irregular methods and this Court must act upon this

evidence and deal with the said illegality.

Honourable G. Okello J. A. (as he then was) stated in the case of John Bagaire Vs

Ausi Matovu C.A. 7 of 1996 (C.A.) where his Lordship stated:

“Lands are not vegetables that are bought from unknown sellers.

Lands are very valuable properties and buyers are expected to make

thorough investigations not only the land but also of the seller before

purchase.”

Uganda Posts & Telecommunications vs. A.K.P.M Lutaaya SCCA NO. 36 of 1995

wherein Court inter alia held that: if a person purchases an estate which he knows

to be in occupation of another other than the vendor, he is bound by all the equities

which the parties in such occupation may have in the land.

According to the Civil Procedure Rules: O.6: R. 2; fraud is a very serious allegation
to make and it is required all such allegations must be specifically pleaded with the

particulars stated and must be strictly proved by the party alleging it. The

standard of proving fraud is not beyond reasonable doubt but merely proving on

the balance of probabilities.

Read: Alibhai & Anor. Vs Karia & Anor

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The effect of notice of unregistered interest and fraud

In equity, a purchaser of a legal estate is bound by any prior equitable interest over

the land which he/she had notice prior to purchase.

Notice is in two forms:-

 Actual notice.

 Constructive notice.

Actual notice is where the purchaser was actually aware of the existence of the

equitable interest before purchase. Constructive notice is knowledge the purchaser

would have acquired if he/she had take reasonable steps to investigate the title.

E.g. if someone {a third party} is in possession of the land at the time of purchase

Read: Uganda Post and Telecommunication Vs AKM Lutaya

In equity, notice of the unregistered interest on the purchaser’s side is deemed to

constitute fraud. In the contrary, under the Torrens system, notice by itself is not

fraud. Section 136 of the RTA provides that except in the case of fraud, a dealer is

not required to inquire or investigate the antecedents of the title he/she sought to

purchase or be concerned with unregistered interests. It further states that mere

notice of unregistered interests, whether actual or constructive, notwithstanding

any rule of law or equity to the contrary does not impute fraud.

Read:

 Shah Vs Modern Sweet mart ltd (1956-57)8 ULR 99

 Kyazze Vs Eunice Busigye CA No. 13 of 1990 compare with the Uganda post &

telecommunication Vs AKM Lutaya.


In applying this section, the courts have held that this section specifically

prohibits the application of the rules of equity, even where the purchaser was

aware of the unregistered interests of a third, the purchaser will not be bound by

it.

It is however important to note that where knowledge of the existence of the

unregistered interest is accompanied amount to fraud. Read: Katarikawe Vs

Katwirimu & Anor. (1977) HCB 187 where there was conspiracy to defeat interests

known to the parties.

i. The estate of a proprietor claiming under prior instruments of title.

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The title of a registered proprietor is not indefeasible as against the interest of

another proprietor claiming the same land under a prior registered title as per

Section 64 of the RTA. The provision envisages a situation where the same land is

erroneously included in two or more certificates of title.

Cases:

 Sewanyana Vs Martin Aliker CA No. 48 of 1976

 Makerere university Vs St. Mark Education Centre & Anor CS No. 378 of 1996

ii. Land included by wrong description.

Section 64 of the RTA further states that the title of a registered proprietor is not

absolute as regards any portion of land that may have been included in his or her

certificate of title by wrong description of the parcel or boundaries.

Read: Awamntatiri Vs Kimono

iii. Public right of way and easements.

The public right of way and easements acquired by enjoyment or user or

subsisting over or upon or affecting registered land constitutes an exception to

indefeasibility under section 64 of the RTA.

A public right of way is a dedication to the public of the occupation of the surface

land for the purpose of passing and re-passing. Makumbi (Mrs. K) & Anor Vs
Puran, Singh Ghana & Anor (1962) EA 331

An easement on the other hand is a right over another’s land for the benefit of

some other land. An easement may be acquired by express or implied grant or by

prescription.

Read: section65 on easements existing under deed or writing to be noticed as an

incumbrance.

iv. Adverse possession.

Under the Limitation Act, if a land owner does not eject or commence proceedings

against an intruder in adverse possession within a period of twelve years, the land

owner effectively losses his/her land to the intruder.

Read:

 Nambalu Kintu Vs Effulaimn Kamira CA No. 26 of 1973 [1975] HCB 221

 Kenyan case of Kisee Maweu & ors Vs Kitu Ranching & co-operative society

Ltd (1982)1 KLR 746

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v. Interest of any tenant of land.

Section 64 states that the interests of any tenant whose possession is not adverse

prevails over the title registered proprietor even though his/her interest is not

entered as an encumbrance on the register book. The effect of the exception is that

the possessor’s claim under the tenancy agreement prevails over whosoever is the

registered proprietor even though the tenancy is not registered.

Read: Uganda Post and Telecommunication Vs AKM where it was held that the

respondent’s registered leasehold was subject to the appellant’s title acquired by

possession with the consent of the landlord prior to the leasehold.

It is therefore important that a person who deals in land must conduct a physical

inspection of the land to ascertain whether person is in possession or not.

vi. Lease, Licence or other authority granted by the Minister.

They override registered interests, ministers’ powers under the road act to declare
any land a road reserve.

vii. Unpaid rates, taxes and charges.

Section 64 of the RTA states that a registered proprietor takes land subject to any

outstanding rates or charges which without reference to the provisions of the RTA

are declared under a written law to be chargeable on the land in favor of the

government or public body.

viii. Registrar’s powers as exception to indefeasibility.

The law gives the Registrar certain powers that may constitute an exception to the

indefeasibility and includes the powers to correct errors and omissions in the

register book and the certificate of title. Powers of the Registrar to recall a

certificate of title and cancel them {Section 91 of the Land Act}

It should be noted that the Registrar’s powers should be exercised with caution to

avoid an open gate to litigation against the registrar.

Read: Rurangaranga Vs Mbarara Municipal Council & Ors.

ix. Overriding statutory exceptions to indefeasibility.

The exception applies here there exists another statute that may create rights that

are enforceable against a registered proprietor or by destruction of existing

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registered interests. E.g. Access to Roads Act that creates right of way over

another’s land.

Provisions of the Land Act on the prohibition of transactions affecting family land

are neither statutory overriding the indefeasibility of title. A transaction can be

avoided in the absence of the spousal consent for family land.

Also statutes that provide for the conservation and protection of certain sensitive

lands for public interest also override the principle of the indefeasibility of title.

Such statutes include the national forestry and tree planting act, the national

environment act, mining act, Uganda wildlife act among others. These statutes may

require cancellation of the titles or impose an obligation on the registered


proprietor to use the land in accordance with the requirements of such laws.

x. Judicial in roads – rights in personam

Section 64 provides for several exceptions but does not deter the courts from

making additional in roads to the principle of indefeasibility on the basis of their

inherent equitable jurisdiction as per the judicature act.

Read the case of Fraser Vs Walker where the judicial powers to intervene without

statutory sanction was espoused. Courts will apply the doctrines of equity where

the registered proprietor enters into a contract for sell of his land and later

transfers to another, the courts will enforce the contract as against him.

Read:

 Adonia Vs Mutekanga [1970] EA 429

 Katarikawe vs Katwirimu & Anor

RIGHTS OF A REGISTERED PROPRIETOR OF LAND

 No action of ejectment or other action for recovery of land shall lie against a

registered proprietor under Section 176 RTA

 The production of a certificate of title shall be held in any court to be an

absolute bar and estoppel to any action against such person named in the

title as proprietor,

 No certificate of title issued under this Act shall be impeached or defensible

by reason of any informality or irregularity in the proceedings previous to

the registration.

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 The certificate shall be conclusive evidence that the person named is seized

or possessed of that estate or interest under section 59 RTA

In Anderea Lwanga V Registrar of Titles [1980] HCB 24Odoki Ag.J held that a title

of a bonafide purchaser for value cannot be impeached. A person registered

through fraud can pass good title to a bonafide purchaser, unless the purchaser

was not bonafide. And in Kampala Bottlers Ltd V Damanico (U) Ltd SC CA
22/1992Platt JSC explained that the registered title cannot be set aside for mere

irregularity in the preliminary stages. Fraud must reside in the transferee. The

learned judge found fraud in the officials of KCC and the land office and not on the

transferee. This was not sufficient to impeach the title bonafide obtained.

PROTECTION OF UNREGISTERED INTERESTS BY CAVEAT.

The registration of an interest provides that the best security against a principle of

indefeasibility. Any person claiming interest over land may protect it by

registration of a caveat.

A Caveat Definition

A caveat is a statutory injunction to the registrar to prevent registration

of any dealings which may not affect the interest, the subject of the caveat. A

caveat serves as an interim measure, usually pending judicial determination of the

caveator’s claim over the land as was in the caee of Kazzora vs Rukuba. It serves

as a notice to the caveator and the public of the nature of the claim the caveator

has over the land.

LODGING A CAVEAT.

Section 20 of the RTA provides that any person claiming any estate or interest in

the land described in any notice issued by the registrar under this Act may, before

the registration of the certificate, lodge a caveat with the registrar forbidding the

bringing of that land under this Act. Every caveat lodged shall be signed by the

caveator or by his or her agent, and shall particularise the estate or interest

claimed; and the person lodging the caveat shall, if required by the registrar,

support the caveat by a statutory declaration stating the nature of the title under

which the claim is made, and also deliver a perfect abstract of the title to that

estate or interest. And no caveat under this section shall be received unless some

address or place in which a post office is situated shall be appointed in it as the

place at which notices and proceedings relating to the caveat may be served.

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Section 139 deals with caveats when land is already registered under the RTA. Thus

any beneficiary or other person claiming any estate or interest in land under the

operation of this Act or in any lease or mortgage under any unregistered

instrument or by devolution in law or otherwise may lodge a caveat with the

registrar forbidding the registration of any person as transferee or proprietor of

and of any instrument affecting that estate or interest until after notice of the

intended registration or dealing is given to the caveator, or unless the instrument

is expressed to be subject to the claim of the caveator as is required in the caveat,

or unless the caveator consents in writing to the registration.

Sections 21 and 140 RTA provide that upon receipt of a caveat the registrar shall

notify the receipt to the person against whose application to be registered as

proprietor or to the proprietor against whose title to deal with the estate or

interest the caveat has been lodged; and that applicant or proprietor or any person

claiming under any transfer or other instrument signed by the proprietor may, if

he or she thinks fit, summon the caveator to attend before the court to show cause

why the caveat should not be removed; and the court may, upon proof that the

caveator has been summoned, make such order in the premises either ex parte or

otherwise, and as to costs as to it seems fit.

Kazzora VS Rukuba it was pointed out that in Uganda, a pending suit affecting

land does not bar continuation of dealings with such land. That therefore the best

way to protect one’s interest would best be achieved through a caveat or an

injunction.

A caveat may be lodged by not only the private party but by the registrar as

well, on behalf of government or a disable person. Section l7O (a)

It must be noted that lodging a caveat does not serve to prove title but rather

maintains the status quo, until the ultimate title ids determined. lt follows from

the foregoing that the duration of a caveat envisaged by the Act is only for a

limited period.

Nature of caveats [WHO LODGES, DURATION, TERMINATION] (sections 20, 21,


22, 139-145 RTA)

 can be lodged by anybody claiming an interest in land

 can be lodged before, during or after land is registered

 it must contain the names and address of the caveator

 it should be supported by an affidavit of the caveator

 it should specify reasons for its lodgement

 once a caveat is filed, the caveator must file a suit in High Court and ask for

its extension (interim injunction)

 a caveat under section 20 lapses after 30 days, if no case is filed in the High

Court

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 a caveat under section 139 lapses 60 days after notice of application to

remove caveat is served upon the caveator

 a caveat lodged by or on behalf of a beneficiary claiming under any will or

settlement or by the registrar does not lapse except as ordered by court

 a registrar can also lodge a caveat on his own motion

 the Registrar has to inform the proprietor of land about the lodged caveat

 a caveator can write to the Registrar to withdraw or remove a caveat

 caveat can’t be renewed except by order of court& for good cause & after

furnishing security for costs

 No entry can be made in Register Book while caveat continues in force.

 A person who lodges a caveat unnecessarily may be compelled to pay

compensation to the land owner

 In case of a caveat by a beneficiary under a will or settlement, a change

of proprietorship may be registered in spite of a caveat if the Registrar

finds that it is authorised by the will and the beneficiary has not

protested the registration within 14 days after receiving the notice from

the Registrar.
 A Registrar can remove a caveat which has been withdrawn or has

lapsed or has otherwise ceased to affect the lands or any interest in the

lands in respect of which it was originally lodged

 A spouse, not being the owner of the land may lodge a caveat on the

certificate of title, certificate of occupancy or certificate of customary

ownership of the person who is the owner of the land to indicate that the

property is subject to the requirement of consent.Such a caveat shall not

lapse while the caveator’s right to security of occupancy subsists. (Section

39 A (7) of the Land Act.)

CASES ON CAVEATS

IMPORTANCE OF A CAVEAT

In John Katarikawe V William Katwiremu [1977] HCB 187where the plaintiff

bought land and agreed that transfer would be effected upon payment of the last

instrument. The purchaser did not handover the duplicate certificate claiming that

it had been lost and that he was processing a special certificate for this purpose.

The plaintiff occupied the land but later discovered that the 2nd defendant had

already been registered in respect of the same land. The second defendant claims

that he had bought the land earlier in 1968 on an oral contract and had had no

transfer effected due to lack of funds. That no agreement of sale was made but

took the title deeds. The transfer was effected on 4th May 1972 while the plaintiff

had taken possession immediately after the sale on 24th April 1971and had been

occupying the land ever since.

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Ssekandi J observed and held that a purchaser of land would ordinarily protect his

interest by filing a caveat or a charge. Mere taking possession of title deeds is

useless unless a caveat is lodged on the title. In case of default however, the

purchaser can sue on the contract and is entitled to damages. He could also obtain

the equitable remedy of specific performance in certain cases.


WHO LODGES CAVEAT AND IMPACT OF LODGING S CAVEAT WRONGFULLY

In Sentongo Produce &Coffee Farmers Ltd V Rose Nakafuma Muyiisa HC MSC

690/1999Arach Amoko J that for a caveat to be valid, the caveator must have

a protectable interest, legal or equitable to be protected by the

caveat;otherwise the caveat would be invalid.

EFFECT OF THE CAVEAT AND HOW A CAVEAT CAN BE REMOVED

In Edward Musisi V Grindlays Bank (U) Ltd SC CA 5/1986the court held that

nothing should be done on land while a caveat is in force prohibiting the same. The

trial judge’s finding that the sale was proper without first having proceedings for

the removal of a caveat was in breach of principles of natural justice as it sought to

condemn unheard the caveators.

In Mohamed & Ors V Haidara [1972] EA 166Lutta JA held that an application for

the exclusion of a caveat must be treated in the same way as an application for an

interlocutory injunction. That applicants must therefore show a prima-facie case

with a probability of success.

LIABILITY FOR WRONGFUL LODGMENT OF CAVEAT

In Haji Zubairi Musoke V Betty Nagayi Civil Suit No. 389/2010, Tuhaise J held

that a person who lodges a caveat without reasonable cause is liable under section

142 RTA to pay compensation to the person who has sustained loss or damage

because of the caveat. Evidence was accepted that the plaintiff was unable to sell

his land due to the presence of a caveat and was therefore entitled to 5,000,000 as

compensation and costs of the suit.

Section140 (1) of the Act empowers courts at any time revoke caveat at the

instance or the caveatee where the caveator fails to show reasonable cause why the

caveat should not be removed.

Wrongful lodgment of a caveat may occasion loss the owner and court may order

compensation to such owner by any person who enters a caveat without reasonable

cause.

DURATION AND TERMINATION OF CAVEAT


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 once a caveat is filed, the caveator must file a suit in High Court and ask for

its extension (interim injunction)

 a caveat under section 20 lapses after 30 days, if no case is filed in the High

Court

 a caveat under section 139 lapses 60 days after notice of application to

remove caveat is served upon the caveator

 a caveat lodged by or on behalf of a beneficiary claiming under any will or

settlement or by the registrar does not lapse except as ordered by court

In Olojo V Rajah, where a caveat was for twenty years, court observed that a

caveat was only meant to be a temporary measure and was not intended to give an

everlasting protection in the sense that the caveator should be hulled sleeping over

his caveated interest perpetually.

Unfortunately the Act does not stipulate a time limit within which a caveat should

expire. It merely provides that it shall lapse automatically; when withdrawn by the

caveator, and where the proprietor applies for its removal and the caveator does

not commence legal proceedings or apply for extension of the caveat within sixty

days of notification of such application.

 In Kazzora V Rukuba SC CA 13/1992 the Supreme Court held that a caveat

which has lapsed is of no effect and cannot be relied upon to imply fraud on

the part of a purchaser with notice of a lapsed caveat. The registrar has

power to remove a lapsed caveat without being moved by either court or

anybody else. The court further stated that a transfer effected while a caveat

is in force is void and ineffectual to pass title. That a caveat which has

lapsed cannot be renewed (to protect the same interest); except where the

court is so convinced and has received security for costs that may arise from

the extension of the caveat and so Orders that registration of a new interest

be delayed for a specified period.


In Katarikawe VS Katwiremu; it was said by SSENKANDI J that taking possession of

deeds is insufficient to protect an unregistered interest, unless a caveat is lodged

thereafter. According to Namususi VS Ntabazi (1988), to lodge a caveat one must

have a caveatable interest.

Municipal District of Concord, Vs Coles,acaveatable interest is defined as a claim

of a proprietary or quasi proprietary nature of interest in a particular piece of land.

Examples of caveats include; claims under wills, leases, mortgages etc.

Boyes VS Gathure; Court rejected a caveat because it did not properly identify the

interest claimed as prescribed by the relevant statutory provisions.

Mutual Benefits Vs Patel a caveat prohibiting all dealings in land was held to go

beyond what was necessary to protect a leasehold interest.

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In Desouza V Talbot, the appellant entered into a sublease agreement with the

respondents, and on entering into possession, he expended some money on

repairing house. He then lodged a caveat purporting to be an equitable mortgagee

in the sublease agreement. It was held however that the agreement referred only to

a sublease and did not refer to the appellant as an equitable mortgagee hence his

caveat as a mortgagee was un founded.

REMEDIES FOR DEPRIVATION OF LAND

1. EJECTMENT and EVICTION . Under the RTA, a person wrongfully deprived of

his/her land may bring an action of ejectment and /or for damages against the

person responsible.

NATIONAL HOUSING & CONSTRUCTION LIMITED V T.N BUKENYA Civil Appeal

No 02 of 2009 HC

Eldad Mwangusya J

I would not fault the Landlord for evicting ‘strangers’ from the flat and the tenant

who is supposed to defend them from their eviction if indeed they are her family

members does not explain their presence in the trial of her alleged breach of
tenancy agreement. I do not believe that the occupants of the flat were family

members of the tenant given the evidence adduced by the appellant that occupants

were paying for their stay. The occupation of this flat by persons other than the

tenant with whom the appellant has a tenancy agreement were in the

circumstances of this case in breach of the tenancy agreement and in view of the

breach the respondent cannot seek protection of the same agreement.

This is irrespective of whether the agreement in force is the one of 1988 or that of

2006. So to answer the 1st and 3rd grounds of appeal this Court finds that the

learned trial magistrate erred in law in holding that the appellant unlawfully

terminated the tenancy agreement entered into with the Respondents. The

appellant was entitled to terminate the tenancy agreement with the respondent

following investigations and finding that the respondent was no longer occupying

the flat and had not informed the appellant of the persons whom she had left in

the flat.

After a careful evaluation of the evidence adduced on record and order of

injunction granted by the trial magistrate the finding of this court is that there was

no basis for the Respondent to be given a right to purchase the suit property under

the Condominium Law as the respondent was in breach of the tenancy agreement.

Secondly even if there was no breach of the tenancy agreement the Landlord

remains with the prerogative to negotiate with the occupant of the flat as to the

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terms of sale under the condominium Law and this court would not interfere with a

Landlord’s right over his or her property especially when the relationships are

governed by a tenancy agreement.

Eviction orders

OSOTRACO LIMITED V ATTORNEY GENERAL HC CS No. 380/1986 [2003] 2 EA

654the plaintiff is the registered proprietor of plot 69 Mbuya Hill. The employees

of the ministry of Information and Broadcasting were in occupation and refused to


vacate when the plaintiff bought the land from Uganda Times News Paper Ltd.

He instituted proceedings against government seeking the orders of Eviction,

Permanent injunction, Special damages, General damages, Mesne profits, Interest,

and Costs of the suit. The defendant argued that an injunction and eviction could

not issue against government against in view of section 15 of the Government

Proceedings Act.

Frederick Egonda Ntende J held that it was much the duty of the state to render

justice against itself in favour of citizens, as it is to administer the same between

private individuals. A declaration order was not appropriate in this case. Section 15

is contrary to the constitutional rights to property and the section would be

construed and qualified accordingly.

That:

“No legal or political system today would place the state above law as it is unjust

and unfair for a citizen to be deprived of his property illegally by the negligent

acts of officers of the state

2. DAMEGES. A person who suffers loss as a result of the registration of another

as proprietor may bring an action for damages against the registrar if the

person is barred by the a court from suing for ejectment.

FREDRICK ZAABWE V ORIENT BANK LTD& 5 Others Civil Appeal No. 04/2006

SC[2007] HCB 24 (Katureebe JSC)

With regard to exemplary damages, the appellant seems to equate them with

aggravated damages. SPRY, V.P. explained the difference succinctly inObongo V

Kisumu Council[1971] EA 91, at 96;“The distinction is not always easy to see and is

to some extent an unreal one. It is well established that when damages are at large

and a court is making a general award, it may take into account factors such as

malice or arrogance on the part of the defendant and this injury suffered by the

plaintiff, as, for example, by causing him humiliation or distress. Damages

enhanced on account of such aggravation are regarded as still being essentially

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compensatory in nature. On the other hand,exemplary damages are completely

outside the field of compensation and, although the benefit goes to the person who

was wronged, their object is entirely punitive.”

In the circumstances of this case, as discussed in this judgment, I do not think this

is a case that qualifies for an award of exemplary damages as envisaged in Rooks -

Vs- Barnard and Others[1964] A.C. 1129, which is very well considered by SPRY –

VP in his judgment in the Obongo Case at page 94. The gist of that decision is

that exemplary damages may be awarded in this class of case. In the words of

SPRY, V.P. at P. 94 these are:“first, where there is oppressive, arbitrary or

unconstitutional action by the servants of the government and, secondly, where the

defendant’s conduct was calculated to procure him some benefit, not necessarily

financial, at the expense of the plaintiff. As regards the actual award, the plaintiff

must have suffered as a result of the punishable behaviour; the punishment imposed

must not exceed what would be likely to have been imposed in criminal proceedings

if the conduct were criminal; and the means of the parties and everything which

aggravates or mitigates the defendant’s conduct is to be taken into account. It will

be seen that the House took the firm view that exemplary damages are penal, not

consolatory as had sometimes been suggested.”

It has to be borne in mind that the respondent were private persons and not acting

on behalf of any government or authority.

I think this is a case where the appellant should receive enhanced compensatory

damages not only for the unwarranted and wrongful deprivation of his property,

but also because of the conduct and apparent arrogance of the respondents. In my

view, this is not the type of case where the respondents are likely to repeat their

wrongs on the appellant.

In considering an award of enhanced or substantial general damages, I must take

into account the station in life of the appellant. He is a senior lawyer and a

respected member of society. He has a family who all lived on the property from
which they were wrongfully evicted. Part of the property was used as offices for

his law chambers. The appellant testified that as a result of this eviction, he had to

find alternative accommodation for his family. He lost not only some of his books

and files but also his clients. His livelihood as a lawyer was compromised. He

suffered much humiliation and distress.

He has since been denied use of his property for the period of about 10 years.

The appellant had made a total claim for shs.307,000,000=. I am of the view that

this a case where substantial damages should be awarded. Given the

circumstances of this case, I would award to the appellant Shs.200,000,000/= (two

hundred million) as aggravated damages.

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3. COMPENSATION. They may also bring an action for compensation in an

appropriate case where they are entitled to it from government or a public

body.

In EDWARD FREDERICK SSEMPEBWA V ATTORNEY GENERAL Const. Case. No.

1/1986, 27/03/86 the main issue was whether Legal Notice No 1 of 1986 as

amended by LN 8/1986 is inconsistent with the provisions of Article 8(2) (c) of the

1966 Constitution. The LN as amended provided that:

“Any suit, motion or proceedings against the government or Local

Administration arising out of the acts or omission referred to in para.

2(i) of this paragraph, pending before any court before the 23rd day of

August 1986, shall forthwith lapse and any judgment, decree, or order

arising out of such suit, action or proceedings which is not fully

executed or satisfied immediately before that date is hereby nullified.”

Kityo P, Oder JA, Kato JA

Statutes interfering with individual property rights must be strictly

interpreted against the party or authority taking away the rights and liberty

of the individual whose right is being taken.


I cannot see why judgment decree already validly in possession of Mr.

Ssempebwa or by anyone else similarly situated should not be treated as

property which cannot be taken away unless reasonable compensation has

been given to him. I cannot find any justification for departing from the

decision in Shah V AG

While I agree that the legislative power of the NRC is unlimited to effect any

new changes for the good government of this country, from the time it took

over sovereign power, but my view is that it should not resurrect the dead to

come back and answer the new created charges, which were not in existence,

at the time when they lived or take away the rights of those who are now

living which were accrued in the lawful or legal manner, at the time when

they were acquired. Therefore the retrospective nullification effect should not

be extended to apply to the already completed cases, like that of Mr.

Ssempebwa or any others who may similarly be situated, but in such cases the

living successful litigants should be allowed to enforce their judgments.

4. COSTS OF THE SUIT

Section 21 of the Civil Procedure Act provides that subject to such conditions and

limitations as may be prescribed, and to the provisions of any law for the time

being in force, the costs of incident to all suits shall be in the discretion of the

court or judge, and the court or judge shall have full power to determine by whom

and out of what property and to what extent those costs are to be paid, and to give

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all necessary directions for the purposes aforesaid. The fact that the court or judge

has no jurisdiction to try the suit shall be no bar to grant costs but the costs of any

action, cause or other matter or issue shall follow the event unless the court or

judge shall for good reason otherwise order. The court or judge may give interest

on costs at any rate not exceeding 6 percent per year, and the interest shall be

added
In Mungecha V AG [1981] HCB 55 Manyindo J held that under section 26 (1) CPA

costs should follow the event unless court orders otherwise. This provision gave

the judge discretion, but that discretion must be exercised judicially. That a

successful party can only be denied costs if it is proved that for his conduct the

action would not have been brought. The costs should follow the event even where

the party succeeds only in the main purpose of the suit.

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UNIT TWO: SERVITUDES OVER LAND

Servitudes defined; refers to rights of use of another's land in a specified way. It

is important to note that the thnese rights constitute interests on land and

enforceable against whoever is the land owner except for the licence.

Types of servitudes include the following:

1. easements,

2. profit a prendre,

3. restrictive covenants,

4. customary rights and

5. licence.

1. Easements defined

An easement is the right to do something or the right to prevent someone

else from doing something over the real property of another. The right is

often described as the right to use the land of another for a special purpose.

Unlike a lease, an easement does not give the holder a right of "possession"

of the property, only a right of use. It is distinguished from a licence that

only gives one a personal privilege to do something even more limited on

the land of another. It is a right attached to a particular piece of land that

entitles the owner of land either to use the land of another person in a

particular manner or to restrict that other person's use of his/her land to a

certain extent.
The land to which the right is attached is called the "dominant" land and

that over which the right is exercised is the "servient" land.

Essential features of easements [four features]

An easement is an interest in land and is enforceable against any proprietor of the

servient land.

An easement must have the following four essential features

1. Existence of a dominant and servient land:

An easement is a right granted for the benefit of a dominant land as against the

servient land. The object of granting the right is to benefit the use of land and not

the owner independently. Makumbi (Mrs. E) & Puran Singh Ghana & Another

{1962] E.A 331 in which Bennet J said that:

"A plea that a certain road used by members of the public was a customary

easement was unfortunate since an easement enjoyed by the public at large was

unknown to law.

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However, it is important to note that the requirement of the existence of a

dominant land may be waived by statute like the Water Act which may create a

statutory easement for the whole public without a specific dominant land.

2. Easement must accommodate the dominant land:

An easement must confer a benefit on the dominant land as against the servient

land. The right created should reasonably and necessarily better the enjoyment of

that dominant land. It is therefore important that the dominant and servient land

should be close enough to each other so as to confer a practical benefit but need

not necessarily be adjoining.

In Ellen borough Park [1956]3 ALLER 667, the right must be connected to the

normal enjoyment of the dominant and not just enhancing its value.

3. The dominant and servient land must not be owned or occupied by the same

person:
It is a requirement that the dominant and servient land must be owned by different

persons for the easement to exist. This is because an easement is a right

exercisable over another person's land. Case: Re: Ellen borough Park (1956)3

ALLER 667: Roe Vs Siddons (1888)22 QBD 224.

However, an easement may be created in respect of land owned by the same

person where different persons occupy the 'dominant' and 'servient' land.

4. The right must be capable of forming the subject matter of a grant:

This requirement embraces several things:-

i. It means that there must be a grantor and grantee.

ii. It means that the right must be capable of reasonable definition.

iii. The right granted must be within the general nature of rights capable of

existing as easements which include rights of way, right to light, support

and the right to water among others. Re: Ellen borough park; Miller Vs

Encer Products ltd (1956) Ch. 304

In contrast, the courts have refused to recognise as an easement, a right of privacy

as was in the case of Hansraj Thakkar Vs the Vanik Mahajan [1960] EA 208.

Examples of easements

Easements include:

 Right to light. The right to receive a minimum quantity of light in favour of

a window or other aperture in a building which is primarily designed to

admit light.

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 Aviation easement. The right to use the airspace above a specified altitude

for aviation purposes. Also known as aviation easement, where needed for

low-altitude spraying of adjacent agricultural property.

 Railroad easement.

 Utility easements including:

o Storm drain easements. These carry rainwater to a river or other body


of water.

o Sanitary sewer easements. These carry used water to a sewage

treatment plant.

o Electrical power line easements.

o Telephone line easements.

o Fuel gas pipe easements.

 Sidewalk easements. Usually sidewalks are in the public right-of-way, but

sometimes they are on the lot.

 Solar easements. Prevents someone from blocking the sunlight.

 View easements. Prevents someone from blocking the view of the easement

owner, or permits the owner to cut the blocking vegetation on the land of

another.

 Driveway easements, also known as easement of access. Some lots do not

border a road, so an easement through another lot must be provided for

access. Sometimes adjacent lots have "mutual" driveways that both lot

owners share to access garages in the backyard. The houses are so close

together that there can only be a single driveway to both backyards. The

same can also be the case for walkways to the backyard: the houses are so

close together that there is only a single walkway between the houses and

the walkway is shared. Even when the walkway is wide enough, easements

may exist to allow for access to the roof and other parts of the house close

to a lot boundary. To avoid disputes, such easements should be recorded in

each property deed.

 Beach access. Some jurisdictions permit residents to access a public lake or

beach by crossing adjacent private property. Similarly, there may be a

private easement to cross a private lake to reach a remote private property,

or an easement to cross private property during high tide to reach remote

beach property on foot.

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 Dead end easement. Sets aside a path for pedestrians on a dead-end street

to access the next public way. Could be contained in covenants of a

homeowner association, notes in a subdivision plan, or directly in the deeds

of the affected properties.

 Recreational easements. Some U.S. states offer tax incentives to larger

landowners if they grant permission to the public to use their undeveloped

land for recreational use (not including motorized vehicles). If the

landowner posts the land (i.e., "No Trespassing") or prevents the public from

using the easement, the tax abatement is revoked and a penalty may be

assessed. Recreational easements also include such easements as equestrian,

fishing, hunting, hiking, biking (e.g., Indiana's Calumet Trail) and other such

uses.

 Conservation easements. Grants rights to a land trust to limit development

in order to protect the environment.

 Historic Preservation Easement. Similar to the conservation easement,

typically grants rights to a historic preservation organization to enforce

restrictions on alteration of a historic building's exterior.

 Easement of lateral and subjacent support. Prohibits an adjoining land owner

from digging too deep on his lot or in any manner depriving his neighbor of

vertical or horizontal support on the latter's structures e.g. buildings,

fences, etc.

Creation of easement

Easements can be created under the following circumstances

1. Creation of easement by statute

2. Creation of easements by express grant or reservation

3. Creation of easement by implied grant or implied reservation

4. Creation of easement of way of necessity

5. Creation of an easement by intention or implication


6. Easement acquired by long user or prescription

7. Creation of an easement by access to public road

8. Easement under the Registration of titles Act

Easements may be created by statute, express grant, or reservation and by implied

reservation or grant. They also be created by way of necessity, implication from

the parties' agreement and by prescription.

1) Creation of easement by statute:

A statute may authorise a public authority to create easement for carrying out their

activities e.g. Water Act allowing the Director of Water Development to create ways

on other lands to pass water for the benefit of others.

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Easements created by statutes need not to have all the essential characteristics of

easements and it is wholly dependent on the statute provisions even if it may fulfil

the common law requirements for easements.

2) Creation of easements by express grant or reservation:

An easement may be created by express grant which involves an open offer of the

use of the servient land by the dominant land as provided in the agreements/

documentation.

An easement by express reservation is created where the instrument or agreement

specifically reserves a right of use of land which has been transferred to the third

party as the transfer retains easement in the agreement.

3) Creation of easement by implied grant or implied reservation:

The court of law will imply an easement where the owner of the land grants part of

his land to another person without expressly providing for an easement and this is

usually referred to as quasi-easement.

A quasi-easement is a continuous and apparent easement which is necessary for

the reasonable enjoyment of the land. Read: Shah Champsi Tejshi Vs Attorney

General of Kenya (1959) EA 630: Wheeldon vs. Burrow [1874-80] ALLER Rep 669
Where the instrument of transfer does not reserve an easement in favour of land

retained by the vendor, subject to two exceptions which we shall presently discuss.

Courts are reluctant to imply for reservation of an easement in favour of such land.

This is because of a well established maxim that “a grantor shall, not derogate

from his/her grant” Read Wheeldon Vs Burrows above.

Courts have observed that with the exceptions of easement of necessity and an

intended easement, a reservation of an easement could not be implied in favour of

the land retained by the grantor. It is stated that if a grantor grants to reserve an

easement in favour of the land retained, he/she must do so expressly.

4) Creation of easement of way of necessity:

Where a land owner sells part of his/her land and the part he/she retains is left

without any legally enforceable means of access to the public road, an easement of

way of necessity will be implied over the land sold. An easement arises by

operation of the law because it is a matter of necessity and vital to the effective

ownership of that part of the land that the owner should have access to. Otherwise

the land would not be much use to him/her. Read: Barry Vs Haseldine [1952]2

ALLER 317: Barclays Bank D.C.O Vs Patel [1970] E.A 88.

It is important to note that an easement of way of necessity does not arise if there

is an alternative means of way of access that is practicably available to the

claimant as a matter of right. The necessity for access must exist at the time of the

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grant and not merely arises later. Read: Mclerrnon Vs Connor [1907] 9 WLR 141:

MIDLAND PLY CO VS MILES [1886] 33 Ch. D 632

5) Creation of an easement by intention or implication.

An easement that is required to carry out the common intention on the grantor and

grantee will be implied even though it is not expressly reserved or granted in the

conveyance. Such easement is known as an intended easement. Read Wong Vs

Beaumont Property Trust ltd (1965)1 QB 173


The law readily implies the grant or reservation of an easement that is necessary to

give effect to the common intention of the parties to a grant.

6) Easement acquired by long user or prescription:

At common law, an easement may be acquired by prescription or by long user even

though there may not be any actual evidence of the grant of the easement. The fact

of long user is regarded as sufficient evidence that the easement was once upon a

time properly granted.

In common law, a prescriptive right was established by proof of continued use

from time immemorial which in England was arbitrarily set at 1189 (Statute of

Westminster 1, 1275 C39). Common law courts now allow a prescriptive claim by

proof of continuous use during living memory, which is arbitrarily set as twenty

years. It is assumed that the right would have been granted properly but

documentation may be misplaced following long period of time passed. Read:

Nambalu Kintu Vs Ejulaimu Kamira CA No. 26 of 1973: Nalton Vs Angus (1881)6

App. Cas 740.

7) Creation of an easement by access to public road:

The right of access over another’s land to the public road may be granted under

the Access to Roads Act, otherwise there is no such right except as discussed

earlier. The landowner may apply to the land tribunal or court for permission to

construct an access road to the public road through another’s land.

The courts reserve the right to grant or dismiss such applications and

compensation to the land owner is provided accordingly. Such access roads once

created must be registered on the registrar book by the Registrar of titles.

8) Easement under the Registration of titles Act:

Whereas the RTA does not provide specifically on how an easement is created. It

states that a certificate of title which mentions that an easement is provided is

conclusive evidence that the registered proprietor is entitled to such as an

easement. The easement constitutes an exception to the principle of indefeasibility

of titles and is protected by the RTA accordingly. (Read RTA).


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TERMINATION/DISCHARGE OF EASEMENTS

Generally, mere non-use does not end an easement. One or more of the following

factors may also have to be present:

ii Agreement to terminate by grantor and the grantee of the easement

iii Expiration of the time allowed for the easement

iiii Merger where one person buys both dominant and servient tenement or where

they both come into common ownership and occupation of the land.

iiv End of necessity which gave rise to easement by necessity

iv Estoppel, where a holder of the easement stops making use of the easement and

a third party detrimentally relied on the stopped use

ivi Prescription where a holder of the easement uses someone else to use the

easement for a period of statute of limitations

ivii Condemnation where the government terminates easement through eminent

domain

iviii By abandonment by the dominant landowner which can be express or implied

from the actions or omissions of the beneficiary. Once an easement is

abandoned, the dominant landowner cannot reclaim it again.

iix Extinguishment by order of court. Any interested party may apply to court to

have an easement modified or extinguished and court may order accordingly as

in Waterloo Vs Bacon (1866) LR 2 Eq 514: Settlement Fund Trustees Vs

Nurani (1970) EA 562

PROFIT À PRENDRE

A profit (or profit à prendre) is a right to take something off another person's land.

At common law it was treated differently from an easement, something that is still

the case in English law. In other jurisdictions a profit is treated as a special type of

easement.

Examples of profits include the right to come onto the property of another and
remove fruits, vegetables, and "fugacious minerals" (minerals that tend to be

movable) such as gas or oil; by comparison, coal, which does not move, would not

be considered a fugacious mineral. The rights of the profit-holder depend on the

nature of the profit.

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It is a non-possessory interest in land similar to easement which gives the holder

the right to take the natural resources such as petroleum, minerals, timber and

wild game from the land. Every profit contains an implied easement for the owner

of the profit to enter the other party’s land for the purpose of collecting the

resource permitted by the profits, where a right to enter and take something that

forms part of the land e.g. soil, minerals, gravel e.t.c

Creation of Profit à Prendre

Profits are created expressly by an agreement between the property owner and the

owner of the profit.

Also created by prescription where the owner of the profit has made open and

notorious use of the land for continuous and uninterrupted statutory period.

Types of Profits à Prendre

a)Appurtenant, this is used by the owner of the adjacent property. the ownership

of the land upon which the profit exists changes hands.

b) In gross, this can be assigned or otherwise transferred by its owner. Courts will

construe a profit as being in gross unless the profit is expressly designated as

being appurtenant. Profits by prescription will be profits in gross.

A profit in gross is completely alienable. It can also be exclusive that is to say

guaranteeing the owner of the profit that no other person will be given the right to

collect the specified resources on the land.

Termination of Profit à Prendre

i) Merger, if the owner of the profit acquires the land to which it applies, there is

no longer need for a separate right to take resources off it.


ii) Release, the owner of the profit can execute a contract to surrender the profit

to the owner of the land.

iii) Abandonment, the owner of the profit ceases to make use of it for a sufficient

length of time to lead a reasonable owner to believe that it will no longer be used.

iv) Misuse, if a profit is used in a way that it places a burden on the servient estate

then it will be terminated.

DIFFERENCE BETWEEN PROFIT À PRENDRE AND SALE OF GOODS.

A contract of sale of goods is defined in Section 2(1) of the Sale of Goods Act as a

contract whereby a seller transfers or agrees to transfer the property in the goods to

the buyer for a money consideration called the price. So, where property in the

goods is transferred from the seller to the buyer, the contract constitutes a

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sale.Where the transfer of property in the goods is to take place at a future time or

subject to some condition thereafter to be fulfilled, the contract is called an

agreement to sell. The term contract of sale includes both “a sale” and “an

agreement to sell”.

While Profit à Prendre

It is a non-possessory interest in land similar to easement which gives the holder

the right to take the natural resources such as petroleum, minerals, timber and

wild game from the land. Every profit contains an implied easement for the owner

of the profit to enter the other party’s land for the purpose of collecting the

resource permitted by the profits, where a right to enter and take something that

forms part of the land

Difference between sale of goods and Profit à Prendre using their essential

features.

1. There must be two distinct parties to a contract of sale; i.e a buyer and a seller.

While in Profit à Prendre the two parties are grantor and grantee and there is no

transfer of any property to another but usage.


2. There must be a transfer of property. Property here means ownership of the

goods. The seller must own the property in the goods, i.e he must have title to the

goods. The seller must either transfer or agree to transfer the property in the

goods to the buyer. But there is no transfer in Profit à Prendre but rather mere

permission.

3. The subject matter of the contract of sale must be goods. Goods include all

chattels other than choses in action and money, industrial growing crops and

things attached to or forming part of the land which are agreed to be severed

before sale or under a contract of sale. It means every kind of moveable and

immoveable property. In Profit à Prendre they are not goods but natural resources

like oil, gas etc.

5. The consideration for a contract of sale must be money consideration called the

price. If the goods are sold or exchanged for other goods, the transaction is

barter trade and not a contract of sale of goods. In Profit à Prendre the

consideration may be anything or there may be no consideration at all but

rather a statutory permission. Look at the creation of Profit à Prendre

discussed above.

License

In Thomas V Sorrell 124 ER 1098, a”licence” was defined as permission, express

or implied given by the land owner to another to enter his land for a specified

purpose, which would otherwise have constituted a trespass. It need not be

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formally executed and its termination may also be informally done. The essence of

a license is permission. In Kampala District Land Board & George Mitala V

Venansio Bamweyaka & 4 Others CA 2/2007SC Odoki CJ explained that the

plaintiffs were described variously in the lower courts as squatters, tenants of a

tentative nature, licensees with possessory interest, or bonafide occupiers

protected from administrative injustice, the occupiers were bonafide occupants;


they were not licensees because no licence was given to them by the controlling

authority.

In Colchester Borough Council v Smith All.ER 1991 vol.2 page 28, it was held

that a defendant who was permitted by the council to occupy land but did not

renew the licence for a period of twelve years implied that the defendant became a

trespasser and his possession of the land was adverse to the council. That by

1st January 1980, he had established both the necessary intention to possess the

land to the exclusion of all and the statutory twelve-year period of adverse

possession.

In Rajwani v Degamwala [1950] EACA 37, the court explained that in establishing

whether the relationship amounted to a lease or a licence regard must be had to

the substance of the agreement. If the effect of the instrument is to give to the

holder an exclusive right, then it is a lease. And if it is merely for the use of the

property in a certain way and in certain terms while it remains in the possession

and control of the owner, it is a licence.

The following are the common types of licences:

 Bare licence

 Licence coupled with interest

 Contractual licence

 Licence by estoppel

Bare license

This is the one granted without valuable consideration. E.g. an invitation of a

friend to come over to your house for dinner is a bare license. it may be withdrawn

at any time by the licensor even in the middle of the dinner. An action of trespass

would lie against a licensee if he/she remains on the land after the license is

revoked.

License coupled with an interest

This is a license to enter upon a licensor’s land for the specific purpose of taking

something that forms part of the land or is upon the land. It is irrevocable while
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the grant remains in existence and may be assigned provided it is disposed of with

the interest to which it is annexed.

A license to take away goods on the licensors land does not constitute an interest

in land. The licensee has a right in the chattel which is on the land and a license to

enter the land to take away the chattel.

Contractual license

This is a license granted for a valuable consideration. At common law, a

contractual license does not bind third parties and its burden does not run with

the land. A contractual license may be revoked, though, if revoked in breach of the

contract, the licensor would be held liable in damages. At common law, it does not

bind third parties even if they bought the land with notice of the license. This

principle was illustrated in the King V Devid Allen & Sons billposting ltd (1916)2

AC 54.

License protected by estoppel.

The licensor may be estopped from revoking a license in certain circumstances.

In Inwards V Baker [1965] 1 ALL ER 446the plaintiff wanted to buy land to build a

house to live in, but he could not afford. Encouraged by his father, he constructed

on his father’s land a house and lived therein for several years. The father devised

the whole land to his widow. The son sued for possession.It was held that the

plaintiff’s father allowed an expectation to be created in the plaintiff’s mind that

the house he built was to be his home, at least for his life. In light of that equity

the father could not have revoked that licence nor could his successor in

title.Denning MR observed that any purchaser of land with notice of a licence

protected by estoppel would be equally bound by the equity.

Termination of licence

Pius Okello Umoni & 5 Others V Obbo Christopher Civil suit No. 86/1999 HC

Mbale
The plaintiffs claimed to be bonafide customary occupants of land who occupied

land unchallenged from about 1959 or 1960 by the registered owner until he died

in 1984. The defendant was son to the registered owner who took up letters of

administration and defended the suit.

Muhanguzi J. found that the 1st plaintiff had been allowed to occupy the land by

the defendant’s father during his life time. For this matter the plaintiff was on the

suit land on the basis of a licence from the defendant’s father who was the

registered owner of the suit land. According to section 29(4) of the Land Act

plaintiff No. 1 is therefore neither a lawful nor a bonafide occupant of the land. A

person who occupies land on the basis of a licence from the registered owner shall

not be taken to be a lawful or bonafide occupant.

The defendant was therefore entitled to evict the plaintiffs as trespassers because

they have failed to prove any interest they claim and the defendant’s notice to

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them to quit the suit land issued on 31st January 1998 terminated the licence

earlier given to plaintiff No. 1 by the defendant’s father around 1959 or 1960. As

such from the date of the notice to quit the suit land the plaintiffs became

trespassers and the defendant in law became entitled to evict them from the suit

land. The plaintiffs had not proved the custom under which they derived their

alleged customary tenure. By virtue of a grant of letters of administration from the

high court, the defendant has every right of a registered owner of the land in

relation to the land registered in the names of his late father.

In The Registered Trustees of the Diocese of Kasese v John Baptist Kiiza & 51

Others [2011]1 HCB 74, Owiny-Dolo J found that the contractual arrangement

between the Sisters and the cultivators was neither a lease nor a tenancy which

would have accorded the cultivators proprietary interest over the land. It was a

mere licence and this was akin to easement which is alternative to and distinct

from a lease or tenancy. This created a mere personal obligation on the licensor
without conferring any interest in the land for the benefit of the licensee.

Contractual licenses which may come in all sorts of varieties can be elevated into

property interests by legislation which can then provide for registration of certain

types of contractual licence. However, section 29(4) of the Land Act expressly bars

any licensee from making any adverse claim to the land he or she is in possession

of so as to be considered a bonafide or lawful occupant. In this case those who

took possession other than by license were squatters on the land. None of the

occupants proved to be a lawful or bonafide occupant.

Because the defendants wrongfully benefited from the suit land for many years to

the detriment of Banyatereza Sisters, and this coupled with the mental torture, fear

of the very probable physical harm the Sisters suffered, and being denied the right

to use the land, the plaintiffs were entitled to an award of general damages. An

eviction order and a permanent injunction order were issued against the 52

defendants.

RESTRICTIVE COVENANT

This is a promise included in a legal agreement that prevents one party to the

contract from taking a specific action. When one enters a restrictive covenant, one

agrees to refrain from doing something or from using property in a certain way

that is restricted by the contract e.g. when purchasing real estate, the buyer may

agree to use the property for the designated purpose only and not for other

purposes. If the contract specifies that the property can only be used for

residential purposes, then the buyer cannot the convert the property to business

use. More so it prohibits the use of property in a certain way by tenants, home

owners or other occupants.

Enforcement Of Covenants At Common Law And Equity

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A covenant is a solemn promise to engage in or refrain from a specified action. At

common law, a covenant is distinguished by the presence of a seal that indicated


an unusual solemnity in the promises made in a covenant. Common law would

enforce a covenant even in the absence of consideration. Real property means

conditions tied to the owners or use of land.

At common law, the benefit of a restrictive covenant runs with the land if three

conditions are met with;

1. The covenant must touch and concern the land.

2. It must affect how the land is used or the value of land.

3. The benefited land must be identifiable.

Restrictive covenant does not run except where strict privity of estate (a

landlord\tenant relationship). The burden can be enforced at law in limited

circumstances under the benefit burden test that is whoever takes the benefit

must also shoulder the burden in Halsall V Brizell, a covenant requiring the

upkeep of roads was found to bind the successor in title to the original covenantor

because he had elected to take the benefit.

In equity the restrictive covenant will run in equity if;

1. -The burden cannot be a positive burden (that it requires expenditure to

meet it)

2. -The purchaser must have notice of the covenant.

3. -The covenant must benefit the covenantee’s land.

4. -The covenant must be intended to run with the covenantors land.

In Tulk V Moxhay, it was determined that the burden could run in equity subject to

the qualifications listed above.

Scheme of Development

This comes into existence where defined land is laid out in parcels and intended to

be sold to different purchasers or leased or subleased to different lessees each

whom enters into a restrictive covenant with the common vendor that his\her

parcel is subject to certain restriction as to use.

The restrictive covenant constitutes a special local law applicable to the defined

land and the burden and benefit of the covenants pass to the purchaser, lease or
sublease of the parcel and he\she is successor in title. This means asset of

restrictions or requirements that are imposed on the owner of property usually to

enhance the value of property.

Scheme might involve landscaping standards e.g.sizes, styles, finishes or color. it

may have restrictions on how the property is to be used. Scheme of development

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are agreements that are put in place to benefit the property owners in a particular

development. The agreement is private and only affects the properties within the

area identified in the building scheme.

Restrictive Covenant Under Registration Of Titles Act

Remedies For Breach Of Restrictive Covenants.

Damages and or injunctions.

This is to restrain the breach; however courts have jurisdiction to award damages

instead of an injunction. The court’s jurisdiction is equitable except in cases of a

breach by an original coventor. Courts consider conduct e.g. delays or inactivity by

the beneficiency as evidence that an award of damages in line to an injuction will

be appropriate. In Sheifer V City of London Electric Lighting, court confirmed the

working rule for awarding damages instead of an injunction was if;

i. -Injury to the claimant legal right is small.

ii. -The injury is capable of being valued in money term

iii. -It can be compensated by a small money payment.

iv. -It would be oppressive to the defendant to grant an injunction.

Extinguishment Of Restrictive Covenants.

There is no statutory provision that gives the land tribunals or the courts power to

order extinguishment of a restrictive covenant, which for example is absolute.

However they may indirectly extinguish such a covenant by declining to grant an

injunction against an owner of the servient land in breach of the restrictive

covenant.
Customary rights

These are ancient rights enjoyed by members of a local community over private

land. They do not have the characteristics of an easement in that they are not

necessarily appurtenant to any dominant land but any member of the community

enjoys them. Subject to the land Act 1998, it is thought that the principle on

indefeasibility of title excludes the enforcement of customary rights against

registered proprietors.

Enforceability of Customary Rights

The survival of customary rights on registered land has been a recurring problem

even in the face of various legislations. There was nothing written to determine

what customary tenure looked like instead the courts, in an effort to protect the

tenants, courts had to find a working criteria for each case.

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This is in favor of a limited section of the public like the inhabitants of a village, a

member of community. This view is partly based on the high court of Kenya case

of Obiero V Opiyo Etal, the issue was whether the defendant’s claim constituted an

overriding interest against the plaintiffs Title It was held that customary rights

were not intended to constitute an exception to indefeasibility of title. Customary

rights constitute an exception to the principle of indefeasibility of title.

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UNIT THREE: LEASES

Definition of a lease

A lease is a legal document, but can be a verbal arrangement, which confers a right

on one person, called a tenant or lessee, to possess property belonging to another

person, called a landlord or lessor, to the exclusion of the owner landlord. The

relationship between the tenant and the landlord is called a tenancy, and can be

for a fixed or an indefinite period of time, called the term of the lease. The
consideration for the lease is called rent or the rental.

Definition of leasehold

Section 3(5) of the Land Act defines leasehold as a form of tenure created either by

contract or by operation of law; the terms and conditions of which may be

regulated by law to the exclusion of any contractual agreement reached between

the parties; under which one person, namely the landlord or lessor, grants or is

deemed to have granted another person, namely the tenant or lessee, exclusive

possession of land usually but not necessarily for a period defined, directly or

indirectly, by reference to a specific date of commencement and a specific date of

ending; usually but not necessarily in return for a rent which may be for a capital

sum known as a premium or for both a rent and a premium but may be in return

for services or may be free of any required return; under which both the landlord

and the tenant may, subject to the terms and conditions of the lease and having

due regard for the interests of the other party, exercise such of the powers of a

freehold owner as are appropriate and possible given the specific nature of a

leasehold tenure.

Distinction between a lease and a license

A lease A license

A contract by which one party conveys

property to another for a specified time

in return for a periodic payment.

Permission given by the occupier of the

land to a license to do an act which

would otherwise be a trespass.

Creates a right to exclusive possession. Gives permission to utilize the

premises.

A tenant is granted exclusive possession

of the land.

The land can still be jointly utilized or


used.

Classification of Leases

Leases have two classes: the fixed term and periodic leases.

Periodic leases are further subdivided into two

 The tenancy at will and

 Tenancy at sufferance.

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1. Fixed Term Leases. This is one whose duration is fixed by the parties at

commencement of the lease i.e. It may be a lease for 12 years, 49 years, 100

years etc. such that upon the expiry of the agreed period, the lease comes to

an end.

2. Periodic Leases. This is one which continuously renews from one term to

another. it may run on a weekly basis, monthly basis or a yearly basis

depending on the Agreement between the parties. It terminates by proper

notice being served by either party as was stated in the case of Prudential

Assurance company Ltd V London Residuary (1992) 3 All ER 504

Sub divisions under periodic leases.

a. A tenancy at Will was defined to mean a person who enters

into possession of the Landlord’s premises as a tenant

without specification of the terms of the tenancy as it was

in the case of Bweya Steel Works Ltd V National Insurance

Corporation (1985) HCB 58.

A periodic tenant becomes the tenant at the mercy of the landowner. The land

owner can terminate the tenancy without giving notice. Where the tenant begins

payment of rent on a regular basis, the tenancy becomes a periodic tenancy.

b. A tenancy at sufferance was defined as implied where a

former tenant remains in possession of the rented premises

after the expiry of the period fixed by the owner as in


Hassan V Mukiibi (1978) HCB 162. It can be terminated at

any time without Notice.

Essential features of a lease

Features of a Lease

 Consideration – rent

 Reversionary right Creation – by contract or operation of law

 Exclusive possession

 Certainty of duration – commencement & ending

The las two are the most essential features of a lease

Certainty of duration – commencement & ending

Term of a lease

The term of the lease may be fixed, periodic or of indefinite duration. If it is for a

specified period of time, the term ends automatically when the period expires, and

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no notice needs to be given, in the absence of legal requirements.The term's

duration may be conditional, in which case it last until some specified event

occurs, such as the death of a specified individual.

 A periodic tenancy is one which is renewed automatically, usually on a

monthly or weekly basis.

 A tenancy at will last only as long as the parties wish it to, and may be

terminated without penalty by either party.

 It is common for a lease to be extended on a "holding over" basis, which

normally converts the tenancy to a periodic tenancy on a month by month

basis.

 Rent is a requirement of leases in common law jurisdiction, but not in civil

law jurisdiction. There is no requirement for the rent to be a commercial

amount. "Pepper corn" rent or rent of some nominal amount is adequate for

this requirement.
At common law a lease must be for a defined duration i.e. having a specified date

of commencement and agreed upon date of ending.

section 3(5)(c) of the land Act provides that a lease is usually but not necessarily

for a period defined directly or indirectly by reference to a specific date of

commencement and a specific date of ending. As such per this provision a lease

may be created even if for a non defined duration. In the case of Lace V Chantler

(1944) 1 All ER 305 the plaintiff, during the 2nd World war Sub-let a house to the

defendant for the duration of the War. It was held that the lease was void for

uncertainty of duration because at the time the purported lease agreement took

effect, it was not certain for what period it will be in effect.

Certainty of duration is not one of the essential requirements for the validity of a

lease. Duration is only provided for non-citizens who can hold a lease for a period

of 99 years.

Exclusive possession

Section 3(5) of the Land Act provides for exclusive possession in

leasehold……tenure as a form of tenure created either by contract or by operation

of law under which one person, namely the landlord or lessor, grants or is deemed

to have granted another person, namely the tenant or lessee, exclusive possession of

land…

Exclusive possession includes non interference from anybody including the land

lord. While a lessee enjoys a right to exclusive possession of a land, a lesser enjoys

only a reversionary interest.

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A leaseholder cannot deny the landlord a right to obtain a mortgage on the same

piece of land. The leaseholder can be paid off and a mortgage can be created or a

mortgage can be created subject to the expiration of the leasehold interest. The

leaseholder can be paid off if the landlord attaches the property, on execution, the

property can be sold off and the Lessee can be paid off while the bank becomes the
new landlord.

There is no law that obliges a landlord to renew the lease, he can refuse to renew it

and no cause of action can accrue.

Section 3(5) of the Land Act defines a Leasehold tenure as a form of tenure under

which the landlord grants or is deemed to have granted a tenant or lessee exclusive

possession of land.

This is the most essential feature of a lease and this is what distinguishes a License

from a lease.

A grant of exclusive possession is the right to enjoy the rented premises to the

exclusion of anyone else; the landlord inclusive. Where the landlord interferes

either directly or indirectly, with the enjoyment of the land or rented premises,

then no lease can be talked about because of the violation of the right to exclusive

possession which is mandatory under a leasehold tenure.

To establish whether or not an occupier enjoys the right to exclusive possession

depends on the intention of the parties. Hence circumstances of a particular case

come into play.

The intention of the parties can objectively be determined from the terms of the

agreement between the parties and the surrounding circumstances.

An express statement purporting to grant the right to exclusive possession is

neither necessary nor conclusive of the occupier’s legal state. The extent of control

over land retained by the landlord determines whether the occupier has exclusive

possession or not.

If the landlord retains general control over the rented premises it is strongly

believed that there is an interference with the right to exclusive possession and to

that extent the occupier is a mere licensee as opposed to being a lessee, this was

decided In the case of Desai V Cooper (1950) KLR 32

Creation of a lease

1. BY CONTACT UNDER LAND ACT SECTION 3(5)

Leasehold tenure is a form of tenure—


(a) created either by contract or by operation of law;

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(b) the terms and conditions of which may be regulated by law to the exclusion

of any contractual agreement reached between the parties;

(c) under which one person, namely the landlord or lessor, grants or is deemed to

have granted another person, namely the tenant or lessee, exclusive possession

of land usually but not necessarily for a period defined, directly or indirectly, by

reference to a specific date of commencement and a specific date of ending;

(d) usually but not necessarily in return for a rent which may be for a capital sum

known as a premium or for both a rent and a premium but may be in return for

goods or services or both or may be free of any required return;

(e) under which both the landlord and the tenant may, subject to the terms and

conditions of the lease and having due regard for the interests of the other party,

exercise such of the powers of a freehold owner as are appropriate and possible

given the specific nature of a leasehold tenure.

The parties usually agree to create a lease and agree to the terms of the lease. It is

either created by operation of law or by agreement between the parties. The

contract may be oral or written.

2. TENANCY ESTOPPEL

One consequence of this rule is that if the landlord in fact has no estate in

the land, then

although the lease or tenancy can confer no actual estate on the tenant, and

cannot beeffective against third parties, it is good between the parties to is

and their successors in title. Both landlord and tenant will be stopped from

denying the validity of the lease or tenancy; they cannot “blow hot and cold”

by claiming that the transaction was valid when entered into, and yet

asserting subsequently that is was a nullity.

No tenancy by estoppel arises, however, if the lessor had a legal interest (as
distinct from an equitable interest) in the land when he granted the lease. If

his interest was greater than the tenancy, the lease takes effect in the

ordinary way; if it was equal to or smaller than the tenancy, the grant of the

lease operates as an assignment of the lessor’s interest. Thus if L grants T a

lease for 99 years T will take a lease for 99 years by estoppel if L had no

interest in the land when the lease was granted. But if L had a lease for 10

years at that time, the lease for 99 years will operate as an assignment to T

of L’s lease for 10 years.

There is a well-established common law principle that where a person enters onto

land as a tenant of another person, both parties are estopped from denying that a

lease exists. In Pardhan Jivraj V Dudley-Whelpadle, it was Held that payment and

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acceptance of rent provided the requisite evidence that the defendant and the

plaintiff regarded each other as landlord and tenant.

An estoppel certificate is assigned statement by a party certifying for another

benefit that certain fact are correct as that a lease exists , that there are no defaults

and that rent is paid to a certain date.

A Party’s delivery of this statement estops that party from later claiming a

different state of facts. A tenant estoppel is a certified statement by a tenant that

verifies the terms, conditions and current status of their leases. it provides proof

of cash flow which is ultimately what a potential investor or lender in a property is

concerned with.

Estoppel means to prohibit therefore, a tenant estoppel is a certificate that

prohibits the tenant from taking opposition contrary to what is stated in their

certificate. Estoppel is a legal principle that prevents someone from arguing

something or asserting a right that contradicts what they said or agreed to by law.

It prevents people from being unjustly wronged by the inconsistencies of another

person’s words or actions.


3. BY REGISTRATION

Leases over land registered under the Registration of Titles Act are created

subject to the provisions of that Act. A lease deed in a written agreement

that governs the terms between a land lord and a tenant. It only applies

where a lease deed exceeds 12 months. Lease agreement registration helps

in protecting the rights of the parties for a lease agreement , the following

should be;

 The period the lease agreement is to last.

 The amount of rent.

 Security deposit.

 Notice period.

 The property must be maintained in good condition.

Unregistered lease and its effects

Thomas Clarke V Sondhi Ltd [1963] EA 107

The tenant occupied the premises but refused to pay rent. The lease was

unregistered and the issue was whether evidence was admissibleto prove that a

lease exists which was never registered.Crawshaw JA stated that a breach of a

condition or a covenant for which the respondent was guilty is a matter between

him and the land lord. And as the crown had not sought to forfeit the grant, the

breach did not affect the relationship of land lord and tenant existing. That an

unregistered lease could operate as a contract inter parties and confer a right to

enforce a lease. The tenant must pay the rent in arrears.

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At common law, a purported lease that does not comply with formalities merely

operates as a contract whereby the proposed lessor promises to lease and the

proposed lessee to take the land subject to the terms of their agreement. Failure by

either party to comply with the agreement could result in action for damages.

In equity, failure to follow legal formalities to create a lease does not necessarily
render the lease void because equity treats as done what ought to be done. An

agreement for a lease capable of enforcement by specific performance creates a

lease referred to as an equitable or informal lease, this principle was laid down in

the case of Walsh V Lonsdale, where the appellant and respondent entered into a

written lease agreement for a term of 7 years subject to a periodic payment of rent

in advance,though the agreement was not by deed as required by law, the appellant

entered into possession. When the appellant defaulted in payment of rent, the

respondent distrained on his goods.

It was Held that though the agreement was ineffective to create a legal lease, it was

effective to bring into existence an equitable lease for a term of 7 years. Therefore,

in the eyes of equity the parties were already landlord and tenant subject to the

same terms and remedies they would have had if their lease had been created by

deed.

Effects of unregistered lease

Unregistered lease does not create the legal relationship between the lessor and

lessee. The position of the law is that in the absence of a registered instrument, the

courts are not precluded from determining the factum of tenancy from the other

evidence on record as well as the conduct of the parties as per the case of Anthony

V Kc Ittp & Sons MANU ISC 10443 2000.

Where the transfer of right to enjoy a property in consideration of a price paid or

promised to be rendered periodically or on specified occasions is a basic fabric for

a valid lease. In the absence of registration of a document, what is deemed to be

created amounts to tenancy.

Conditions and covenants, tenant-landlord rights and obligations

The terms of a lease maybe expressed as conditions or covenants.

A condition is a term which is essence of a lease agreement and its breach entitles

the innocent party to terminate the lease. It is an event or occurrence that will

trigger one or more obligations under the contract until the event takes place,

there is no obligation to power form under the contract.


Express covenants.

These are expressly stated in a contract .it must be in writing and must give

meaning as read in the contract. It is one expressly agreed between the parties and

inserted in the deed.

Covenants implied under general law against the landlord

An implied covenant is an agreement that is not specifically stated in the contract

terms but in implied against a tenant this include;

a.) Quiet possession, this is the right to own or use property or goods without

anyone causing you any difficulties. The covenant of quite enjoyment

implies that the landlord and those claiming through him or her will not

interfere with the tenant’s possession. The breach of covenants for quite

enjoyment takes various forms for example in Opinya V Mukasa, the

landlord sought to forcibly evict his tenant by removing the roof from the

premises. The court found that the landlord was liable for the breach of

covenant of quiet possession.

The landlord is not liable for the breach of covenant of quiet enjoyment where the

interference with the tenant’s possession is due to unlawful activities of other

person e.g., in Shah Champshi Tejshi & Others V The Attorney General of Kenya,

the government granted a lease to the plaintiffs. The plaintiffs claimed that under

the lease, they had an implied right of access to a certain road. Later, the

government leased the adjoining land to another person and latter blocked the

plaintiff’s alleged access road. The plaintiffs sued the government for breach of

the covenant of quite enjoyment. It was Held that the government was not

responsible because it had not been established that the interference was lawful or

that if unlawful it had permitted it.

b). Non-derogation from grant. This is a doctrine that a party should not derogate

from its grant embodies a general legal principle that if A agrees to confer benefit

on B, Then A should not do anything substantially deprives B of the enjoyment of

that benefit. This is implied only where the tenant uses the land for a purpose that
was within the contemplation of both parties at the time the lease was entered

into. The reason is that the tenant cannot extend the landlords obligation beyond

what was contemplated by both parties for example in Robinson V Kilvert, the

landlord leased the upper floor of his building into the plaintiff for business

purpose. The landlord employed a heater in the ground floor which caused the

temperature to raise in the premises leased to the plaintiff. It was Held that the

landlord was not liable for breach of covenant to derogate from the grant because

the plaintiff was using the premises for a special purpose that was not

contemplated by both parties.

c). Fitness for human habitation. On 20th march 2019, a new law came into force

to make sure that rented houses and flats are fit for human habitation which

means that they are safe, healthy and free from things that could serious harm as

it was decided in the case of Sarson V Roberts [1894]2 QB 395.

Landlords make sure that houses and flats they rent out are safe, secure, warm and

dry. In the case of Smith V Marrable, it was Held that the tenant quits the

premises without giving notice under the lease.

Covenants implied against the tenants

At common law, every tenant has the benefit of a covenant implied into their lease

that the landlord will not breach the tenants quite enjoyment of the premises. The

tenant will be allowed by the landlord to occupy the premises undisturbed, to pay

rates and taxes on the property, to use the property in a tenant like manner. This is

an obligation to look after the property in general this was in the case of Warren V

Keen.

To allow the landlord to enter and view this is an implied obligation to allow the

landlord to access the premises, to inspect them and to carry out necessary repairs

this was decided in the case of Mint V Good.

Covenants implied under the Registration Of Titles Act

The Land Act implies against the lessee that he or she will pay rent reserved by the

lesser and all other dues that are payable under the demised property. The Act
implies that the lesser should keep yield up the demised property in good and

tenantable repair reasonable wear and tear excepted. The obligation of a tenant is

not only to maintain the premises in tenantable repair during the term, but also to

deliver them up in that order at the end of the lease. Therefore, unless otherwise

agreed, where at the commencement of the lease the premises are in disrepair, it

is the lessor obligation to out and keep them in tenantable repair at his or her

expense.

The Act further implies that the lessor has power to enter the premises at all

reasonable times for specific purposes such as inspection of the premises and

repair

SUBLEASES AND ASSIGNMENTS

A sub-lease is a transfer of the rights to use the land leased to the lessee or part of

it to some other person on agreed terms which must include observance of the

covenants in the head lease and a right of reversion to the sub-lessor before the

expiry of the main lease.

Enforcement of the sublease

The sub-lease must be on the terms set out and must be registered

The sublease, like a lease must equally be in writing, executed, attested and

registered. S.109 RTA

The registrar shall endorse the sub-lease on the certificate of title as an

encumbrance. S.110

The registrar shall then issue a fresh lease/sub-lease certificate s.111the terms of the lease shall apply
to the sub-lease, s.112,113

In Garry Denning Ltd Vickers [1985] 1 NRLR 527 court found that the essence of

a sublease is the fact that a sub-lessor retains a reversionary interest in the land,

bringing into existence a new tenurial relationship between sub-lessor and sub-

lessee.

In Kampala City Council V Mukubira [1968] EA 497 it was held that on subletting

and parting with possession without consent of the lessor, the lessee was in breach
of the lease agreement.

In City Council of Kampala V Mukiibi [1967] EA 368 Sir Udo Udoma CJ stated that

a tenancy agreement, although not in statutory form and bearing no endorsement

with a certificate of registration was enforceable against the defendant as an

agreement to grant a lease. The persons working on the premises were licensees,

not tenants and were not in exclusive possession of the premises, so that the

defendant had not sub-let, assigned or parted with possession of the premises and

was not in breach of the covenant. Where there is no exclusive possession, the

parties are licensees and not lessees.

Section 35(1) of the land act introduces a criminal sanction against a tenant by

occupancy who assigns his tenancy without giving priority to the landlord, in

addition he/she has to lose the tenancy and the purported assignee would acquire

no rights at all. The transaction would actually be void ab initio. This therefore

makes it strict that no sell, lease, transfer or assignment is effectual where the

landlord is by-passed.

Assignment of a reversion

An assignee of a reversion acquires the right to sue for breach of covenants

committed before the assignor losses that right.

Section 35(2) of the land actptovides that The owner of land who wishes to sell the

reversionary interest in the land shall, subject to this section, give the first option of

buying that interest to the tenant by occupancy.

Remedies For Breach Of A Contract (Landlord And Tenant)

i) Damages

An amount of money a warded by a court in order to compensate a claimant who

has suffered loss as a result of a wrong committed by the defendant.

ii) Injunction.

A discretionary remedy that takes the form of a court order requiring a party to

either refrain from doing something (prohibitory injunction) or to specifically do

something (mandatory injunction).


) Termination of a lease.

A land lord may legally terminate a lease if the tenant is in violation of the term of

the lease or has broken the law. The tenant may be provided time to remedy the

violation by paying outstanding rent or a notice may stat that the tenant must

vacate that premises or risk eviction. It may also be terminated by the tenant if the

conditions of the premises are not fit for habitation.

iv) Mesne profits.

This is a profit of an estate received by the tenant in wrongful possession and

recoverable by the land lord.

V) Distress for rent (bailiffs).

This remedy is so limited; the general rule is that a land lord can distain only upon

goods that are located on the tenant’s premises. The rule that all goods on the

tenanted premises are distrainable is subject to a multitude of exceptions.

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vi). Forfeiture.

This is the loss or giving up of something as a penalty for wrong doing.

vii) Relief from forfeiture.

This is where a land lord seeks to end a lease by re-entering the property following

a breach of covenant by the tenant.

viii) Waiver of forfeiture.

Waiver is the voluntary relinquishment, surrender or abandonment of some known

right or privilege. A forfeiture is waived by acceptance of rent which has become

due since the forfeiture or by distress for such rent this is provided under Section

111(g) of the transfer of properties Act 1882.

Termination of a lease

1) Forfeiture

This is a situation where the landlord is entitled to re-enter the ranted premises

and put an end to the lease, where there has been breach by the tenant of
conditions of the lease even if the lease does not contain an express clause for

forfeiture.

However before the landlord re-enters the land, he must make a formal demand

unless if the leasehold agreement provides to the contrary. It has to be reasonable

notice and it will largely depend on circumstances of the case. E.g. parties may

agree on the type and mode of notice.For example a clause in a leasehold

agreement may provide that a lease may be forfeited if the rent is in arrears for

specified period i.e. Default for 6 months the lesser has a right to re-enter the

premises.

The landlord may re-enter the premises either peacefully or by getting a court

order for possession. It is not advisable to re-enter dwelling premises without

proceeding to Court.

Section 25 of the Judicature Act provides for relief from re-entry or forfeiture for

nonpayment of rent. It provides that where a Lessor is proceeding by action or

otherwise to enforce a right of re-entry or forfeiture for nonpayment of rent, the

Lessee may apply to court for relief.

2) Effluxion of time

A lease for a fixed period of time can expire upon the lapse of the agreed period.

3) Notice of quit

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For a fixed term lease, there may be a provision for termination of the lease upon

giving notice and such provisions must be complied with. The notice must be

given by the lesser his or her recognized agent and it must be sent to the proper

address, as it was In Lenon V Ladoem, the property belonged to the wife and the

jealous husband gave notice of termination to the lessee. The lessee contested and

the Court Held that the notice was illegitimate since the husband had no authority

to give notice on behalf of his wife.

In Balhir V Peneser [1972] EA 94, a lawyer gave notice on behalf of his client to
vacate and deliver possession of the front portion of the estate. The tenant

contended that this was not a termination due to uncertainty. Court Held that a

liberal interpretation must be given to the notice so that even if it is inaccurate,

effect is given to it as if it were clear to the recipient

4) Surrender

This is where before the expiration of the lease, the lessee surrenders his lease to

the landlord who if accepts the surrender, the lease merges with reversion and it is

extinguished this is provided for under Section 108 of the R.T.A. For example if x is

the owner of Mailo land at Kibuli, creates a leasehold interest in favor of Y, if Y

writes to x showing an intention to give up the leasehold interest and x accepts,

the leasehold interest is merged with x ‘s reversion.

Surrender may be by express agreement, operation of the law or statutory

provision. A lease is surrendered by operation of the law if a lesser grants and the

lessee accepts a fresh lease commencing before the current lease expires. A lease is

also surrendered by operation of the law where the tenant abandons the premises

and the lessee re-enters

5) Merger

This occurs where the tenant in addition to holding his leasehold interest acquires

a reversionary interest as well e.g. where x, the registered proprietor of Mailo land

at Kibuli leases his land to Y for a period of 45 years and Before the Lapse of Y’s

Lease, X agrees to sell his reversionary interest to Y. in this case, Y’s leasehold

interest is terminated by the merger.

For a merger to be effective, the lease and the reversion must be vested in the

same person in the same right.

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ntitled to compensation from Government. The buyer was also entitled to

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