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Insights

THE SUPREME COURT RESTATES THE STATUS OF ALLOTMENT LETTERS

The Supreme Court (the Court) in Torino Enterprises Limited Vs Hon. Attorney General, Petition Number 5 (E006) of 2022 re-affirmed the position of letters of allotment as being mere invitation to treat.

The allottee who has received an allotment letter is required to fulfill conditions in the letter of allotment for the allotment to be valid. The Court further stated that even where the conditions in the letter of allotment have been fulfilled, the allottee should acquire a title to the land through registration under the relevant laws.

Thus, an allottee cannot pass good/valid title to a  third party until he acquires title to the land through registration. The Court stated that it is the act of registration that confers a transferable title to the land.

It is worth noting that many parcels of land issued through allotments are yet to have titles registered in the names of the allottee. Many others have erroneously relied on letters of allotment as proof of ownership when purchasing properties. In such instances, where the conditions in the letter of allotment were not fulfilled nor titles processed, the properties in question remain public land.

How do you process titles from allotment letter?

The National Land Commission (NLC) is mandated to oversee the allocation of plots and preparation of the lease documents on behalf of the public entity that has issued the allotment letter i.e National or County Government.

Below are the steps to follow in order to process a title from an allotment letter:

1) Acceptance of the offer.
One is required to write to NLC accepting the terms and conditions in the allotment letter within the duration stipulated in the allotment letter. Afterwards, make payment of the statutory fees indicated in the allotment letter.
A plot file is then opened and a number issued.

2) Surveying of the land
The next step is to contact a Land Surveyor to undertake a survey of the plot. You will need to provide a copy of the letter of allotment, map, special conditions and payment receipt of the statutory fees.
Once survey is done, obtain the Registry Index Map and the survey details and forward to NLC for preparation of lease documents.

3) Lease preparation by NLC
NLC will reconfirm the status of the allocation of the land as well as record and store the survey details in a catalogue. Afterwards, the lease will be prepared and signed by the relevant officer.

4) Payment of fees
Assessment of the required stamp duty will be undertaken and afterwards stamp duty is paid. You will also be required to obtain land rent and rates clearance certificates.

5) Registration of the lease
The lease is then forwarded to the Ministry of Lands for registration and a certificate of lease issued.
In conclusion, it is important to seek legal advise and the input of professionals to ensure that you acquire a good and valid title.

Should you require any further information, do contact us on info@cfllegal.com.

Contributors:

Emma KyaloRoselyne Muyaga
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