VARIOUS FORMS OF LAND RECORDINGS
• Most countries use one of three basic
systems of land conveyancing or
land ownership and transfer. These
are:
Private conveyancing
Registration of deeds
Registration of title ( The torrens
system)
Private conveyancing
• Most countries use one of three basic
systems of land conveyancing or
land ownership and transfer. These
are:
Private conveyancing
Registration of deeds
Registration of title ( The torrens
system)
Private conveyancing
• Conveyancing is the transfer of legal title
of property from one person to another.
• A system of conveyancing is usually designed to
ensure that the buyer secures title to the land
together with all the rights that run with the land.
• The conveyancer’s role is to carry out due
diligence – known as searches – about the
transacted property.
• These are designed to uncover factors that they
may not know about, which could impact the
buyer’s enjoyment of the property.Cont’d
• The purchaser in a private conveyance
can acquire only the title the vendor
held, which depends on the title held
by the vendor's predecessors.
• Under Private Conveyancing, the
ownership of land was to be proved by
long
complicated
instruments
(documents), which are kept by the
owner.Cont’d
• Any person buying the land,
therefore, will require the seller to
provide these documents going back
over as many years as necessary to
prove ownership of the land.Deeds Registration
• Deeds registration system is merely a
registration
of
all
important instruments related to that land.
• In order to establish one's title to the land, a
person will have to ascertain, for example:
That all the title documents are properly
executed
"a chain of title" is established, i.e. the proper
ownerships from the granting of the land from
the government to the present owner;Cont’d
There are no encumbrances on the land
that probably will harm the title of the
land.
• In
contrast
to
the Torrens
title system, the registry is merely a
record of all instruments related to
the land, the "owner" as shown on
the land registry record. It does not
necessarily mean that he has a
"good title", which means a title
that is not defeasible or potentiallyCont’d
• 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".Cont’d
• All deeds have to be sent to a central
registry office, which keeps them and
indexes them under the name of the
grantee or purchaser.
• The registry office does not examine
the deeds or guarantee their legality.
Any person dealing in the land, then,
will have to search the documents
and determine the status of the land.Cont’d
• A person's ownership over land could
also be challenged, potentially causing
great legal expense to land owners and
hindering development.
• 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 Registration of Titles ( The
Torren System)
• The Torrens title system operates on
the principle of "title by registration"
(granting the high indefeasibility of a
registered ownership) rather than
"registration of title."
• 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.Cont’d
• The system does away with the need
for proving a chain of title (Tracing
title through a chain of documents)
• The State guarantees title and is
usually supported by a compensation
scheme for those who lose their title
due to private fraud or error in the
State's operation.Origin of the Torren system of
Land Conveyancing
• In 1840, Sir Robert Torrens who came
from south Australia, advocated for a new
system that could be used in Australia.
• Sir Robert was of the view that there be a
total break away from the private
conveyancing and registration of deeds.
This was so because of the dependent
nature of titles which necessitated
retrospective investigation of title
each time land had to been conveyed .Cont’d
• He opted for a system of conveyance which
was simple to operate, secure and fair
compared to other systems.
• Thus, he wanted a single document that
could be a conclusive evidence of a title to
each particular piece of land.
• Sir Robert Torrens’ efforts led to the
evolution of the Torrens system of land
conveyance in Australia in 1858 thus
naming the system after his name.Cont’d
• The
system
spread
even
to
Australian states, New Zealand,
Malaysia, Papua New Guinea, some
states in United States of America
and Canadian provinces. Since
Uganda was a protectorate, it was
subjected to the systems of Britain
thus the system of Torrens had to be
inculcated in Uganda.Cont’d
• The Torren System was introduced in
Uganda by the Registration of Titles
Act( Cap 205) which was enacted in 1922
by Ordinance No.22 of 1922 and came into
effect on 1 May 1924.
• The Registration of Titles Act automatically
applies to all mailo land, freehold or
leasehold
• Customary land tenure is not registrable
under the Act.Scheme of the Act
• The system of Title registration under the
RTA revolves around a centralised “
Register Book”.
• This book embodies certificates of title kept
in a running form each representing a
separate parcel of land described therein
and registered under the Act.
• If land is brought under the Act for the first
time, the registrar is required to prepare a
certificate in duplicateCont’d
• One copy is retained by the registrar
and kept in the register book, the
other is issued to the person who is
registered as proprietor of the land or
interest and referred to as the
duplicate certificate of title.
• Any transaction affecting registered
land must be endorsed on the
register book and certificate of title.Cont’d
• The duplicate certificate of title must
always be produced whenever any dealing
concerning the parcel of land is lodged for
registration.
• The Act requires the registrar to record
transactions in such a manner as to
preserve their order of priority which is
the order of presentation for registration
and not the order of the date the
transactions were entered into.The Principles of the Torren system
• The Mirror Principle – This refers to
the “register” or certificate of title, which
accurately and completely reflects the
current facts about a person’s title.
• It does not provide for facts or changes
that could be registered but which are
not. In other words, a title is free of
adverse claims or burdens unless they
are mentioned on the title.Critique
• In practice, this mirror principle
cannot be absolutely reliable, as
there are certain public rights and
burdens, which do affect a person’s
title even though they are not
reflected in the title.The Curtain Principle
• This
means
that
the
current
certificate of title contains all the
relevant information about the title.
• Thus, a potential purchaser does not
need to be concerned about dealings
on any prior title.
• Therefore, a historical search to verify
that the title is good is unnecessary.Critique
• Here again, this principle is not
always applied and historical or
“chain of title” searches are made in
certain circumstances.The Insurance Principle
• This provides compensation for loss
of rights.
• The principle is that the register
reflects the absolutely correct status
of the land.
•
If, through human error, a flaw
appears and anyone suffers a loss, it
is made right so far as money is able
to compensate.
Essential Features of the Torren
System
• The torren system has two essential
features that distinguish it from other
systems of conveyance:
Title by Registration
The Principle of indefeasibility
of title1. Title by Registration
• Interests in land are created or
transferred not by execution of
documents but by registration in the
manner prescribed under the RTA.
• S. 54 of the RTA is to the effect that
no instrument is effectual to pass
any interest in any land until it is
registered.
• Ndigejjerawa v Isaka Kizito and
Sabane Kubulamwana (1953) 7Cont’d
• HELD: Neither the appellant nor the
second
respondent
achieved
a
transfer of the land to himself by the
execution of his document or by
paying the purchase price. Ainsley J
emphasised the fact that .... no
instrument can be registered
unless
it
fulfils
certain
requirements and no instrument
is effectual to transfer anyCont’d
• S.92(1) of the RTA empowers a proprietor
of land or of a lease or mortgage, right or
interest to transfer by completion of the
prescribed form.
• The instrument signed by the proprietor
and witnessed is presented to the
registrar together with the duplicate
certificate of title and such
other
documents or consents as may be
necessary.Requisite steps you would undertake
to establish viability of a transaction
• Three stages must be observed:
Pre- Transaction ( Due diligence)
Transaction ( Agreement of sale)
Transfer
Note: All these stages must be
documentedPre-Transaction Stage
• Due diligence – This includes carrying
out a search
• S.201 of the RTA empowers any
person upon the payment of a
prescribed fee to inspect the register
book.
• Due diligence is dependant on the
size of the pocket of the client.
• Search must be proximate to the
transactionCont’d
• Opening up of boundaries to
ascertain location and size.
• Physical inspection to ascertain
ownership and verifying anything on
the land.
• Where sale is by individuals then
inquire the marital status.
• Inspection to ascertain whether it is
family land.Cont’d
• Citizenship
• True identity of the vendor
• Take the title to the land registry to
verify
• Inquire from neighbours.
• Check with Physical Planning
Authority
• Check with NEMA.An agreement of sale
• Description and address of parties
• Consideration and currency
• Terms of payment
• Vendors warranty as to title and
encumbrances.
• Right to vacant possession
• Execution of transfer deedCont’d
• Legal costs of the transaction
• Clause on default and consequences
of default
• Address of service of notice if
different
• Dispute Resolution Mechanism
• Date
• Signature
• WitnessesTransfer stage
• Proper execution of a transfer deed
• Execution of consent forms
• Both forms are assessed for purposes of
valuation by chief valuer for purposes of
payment of stamp duty.
• Submit TIN number incase the value is
sh.50 million and above
• Identification of both parties with
passport photographCont’d
• Pay stamp duty, registration fees and
bank charges.
• Lodge these documents together
with the duplicate certificate of title
with the Registrar of Titles.The Private Conveyance
System
• It is the most common system
in
developing countries.
• It is a system of conveying interests in land
without recourse to any public records.
When a vendor is selling to a purchaser, he
simply hands over the title deeds of all his
predecessors in title, as well as a deed
from himself to the purchaser. If the
purchaser is satisfied with the chain of
title, the transaction is completed.Cont’d
• If
the
instrument
and
the
accompanying documents are in
order, the registrar will go ahead and
effect the registration.
• Registration is effected when the
registrar enters the instrument
purporting to affect the subject
estate or interest in the register
book.Effect of Registration
• Upon the registration of the transfer, the
estate and interest of the proprietor shall
pass to the transferee and the transferee
shall become the registered proprietor
thereof. ( s.92(2) RTA)
• S.46 (4) RTA is to the effect that the
person named in any certificate of title or
instrument so registered shall be deemed
and taken to be the duly registered
proprietor of the land.Cont’d
• In Father Narsensio Begumisa v
Eric Tibebaga SCCA No. 17/2002
court held that it is trite that a
certificate of title issued under
the RTA is conclusive evidence
that the person named in the
certificate
as
proprietor
is
possessed of the estate in the
land described in the certificate.Unregistered
instruments
• S.54 lays emphasis on registration as
a condition precedent to creating or
passing interest in land.
• What is the fate of unregistered
interests?
• Do they have any legal efficacy?
• Souza Figueredo & Co Ltd v
Moorings Hotel Co Ltd [1960] EA
926Cont’d
• HELD: Sir Kenneth O’Connor P, concurred
with other judges by stating that though
s.59 states that no estate or interests in
land can be created or transferred by an
unregistered interest, there is nothing in
the Act that renders such instruments
ineffectual as contracts between the
parties. As such, it can confer on the
party in the position of intending lessee
a right to enforce the contractCont’d
• His honour held that the respondent was
entitled to the payment of the sums due under
the contract to pay rent for the period which
the appellant enjoyed possession.
• Katarikawe v Katwiremu and another CS
No.2 of 1973 Ssekandi 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.Cont’d
• In Alibhai and another v Karia and
another CA No.53 of 1995
• The issue in this case was whether property
passed to the respondent before the
transfer was registered and if so when?
• Oder JSC, held that after the contract of
sale, property in the suit property passed
to the first respondent, who obtained the
equitable thereto and retained after the
appellants had left.Cont’d
• Oder JSC further stated that the
appellants in whom the legal estate
remained became trustees of the
first respondent and were under a
duty to transfer the legal estate in
the suit property to the respondent
on completion of the contract. It is
that legal estate that vested in the
board.Indefeasibility of Title
• This means that once a person is
registered as proprietor of an estate
or interest in land the government
guarantees that his or her title
cannot be divested or attacked by
rival claims to the land except as
prescribed under the Act.
• The indefeasibility principle
was
designed to achieve two main
objectives:Cont’d
• To protect title of the registered
proprietor from unregistered interests.
• To save persons dealing with registered
land from the trouble and expense of
going behind the register book inorder
to investigate validity of title or
possible rival claims to the land.
• This in turn simplifies and expedites
the process of transfer.Cont’d
• A number of sections under the RTA give the
meaning and scope of indefeasibility.
• S. 59 which declares that certificate of title
shall be conclusive evidence of all particulars
and endorsements thereon and that the
person named in the certificate as the
proprietor possesses the interest described.
• S.64 is to the effect that subject to the
exceptions stated therein, the estate of a
registered proprietor is paramount.Cont’d
• S.
178
protects
a
registered
proprietor against any action for
ejectment or damages.
• The application of the principle of
indefeasibility is illustrated by the
case of Lwanga v The Registrar of
Titles (1980) HCB 24
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