Armstrongs Attorneys LAND TENURE IN BOTSWANA INTRODUCTION Botswana has a distinct system of land tenure and ownership as regards land in urban areas, land in tribal areas and agricultural land. During the early 1970's the Government of Botswana enacted the State Land Act in terms of which it was decreed that all land not privately owned in terms of the titles registered in the Deeds Registry would be dealt with Agricultural land is subject to control under the Land Control Act and there are restrictions on non-citizens owning or taking security over agricultural land A brief account of the salient features of some of the forms of Botswana Land tenure is set out below. STATE LAND State land is owned by Government of Botswana under the State Land Act Cap 32:02 and is found in rural and urban areas. The land distribution is done by the Attorney General with assistance from the Department of Lands under the Ministry of Land and Housing. Allocations have been in the form of Deeds of Grants, Fixed Period State Grants and Certificate of Rights. Certificates of Rights are administered by the Self-Help Housing Agency (SHHA) under each town or city council. DEED OF STATE GRANT as state land. After the Act was introduced, the state divided up the various urban areas into extensions for industrial, commercial and residential purposes. All extensions in townships and urban areas are delineated in general plans reflecting the co-ordinates and areas of each individual plot of land and the general plans are filed at the Deeds Registry in Gaborone. In addition to state and privately owned land there is also tribal land. Tribal land is under the control of various land boards set up under the Tribal Land Act and they have, subject to approval by the Ministry of Lands and Housing, rights of allocation to citizens and non-citizens. Finally mention needs to be made in this introduction of agricultural land. This is normally freehold land in an agricultural area. Agricultural land is subject to control under the Land Control Act and there are restrictions on non-citizens owning or taking security over agricultural land subject to approval by the Ministry of Lands and Housing. After the enactment of the State Land Act, Deeds of State Grant were issued in terms of which the holder of the Deed to all intents and purposes became the full owner in perpetuity of the property. The holders of Deeds of State Grant are also free to sell, lease or mortgage their properties to citizens or non-citizens and there is no time limit to this kind of title. Towards the end of the 1970's however the issuing of Deeds of State Grant was discontinued and it is unlikely that any further Deeds of State Grant will now or in future be issued. DEED OF FIXED PERIOD STATE GRANT State land in urban area is currently allocated or made available through Deeds of Fixed Period State Grants. These Deeds are issued in respect of plots in urban areas that have been surveyed. Deeds of Fixed Period State Grant provide the grantee with absolute rights of disposal over the relevant property subject however to compliance with the development covenant in the Deed. The grant is generally fixed for a period of 50 or 99 years. Until the development covenant is complied with, the holder of the Deed may lease or mortgage the property but is not permitted to transfer it except to the State. The development covenant usually requires a building up to a specified value to be completed within a period of two years following the registration of the Deed. On the specified development being completed, a certificate of compliance is issued by the Department of Surveys and Mapping and the Grantee is there upon at liberty to sell and transfer the land. If a holder fails to comply with the development covenant, they may be obliged to sell the property back to the government at a percentage of the original purchase price. Each Deed of Fixed Period State Grant specifies that on expiry of the fixed period of Grant, the property shall revert to State without any compensation being paid (whether in respect of improvements thereon or otherwise). CERTIFICATE OF RIGHTS: SELF HELP HOUSING AGENCY In order to assist the lower income groups to obtain houses the Self Help Housing Agency (SHHA) in each town in Botswana allocates portions of land averaging approximately 400 square metres to citizens. Such land is not subject to title deeds registered at the Deeds office and is held in terms of certificates of rights. The owner is, with the consent of the relevant township authority, at liberty to sell, lease or otherwise alienate such property. However a mortgage bond cannot be taken over such property as it is not subject to any formal diagrams. immovable property. Where only a portion of registered land is to be leased under a long-term lease, then a diagram preferably approved by the Director of Surveys and Mapping must support the application for registration of such lease. Subject to the Land Control Act (see below) a holder of land held under a Deed of Grant, a Deed of Fixed Period State Grant or a Deed of Transfer can effect or enter into a long lease (and register same) with any person (citizen or non-citizen). Once registered the holder of a long lease may sublet the land or register a mortgage bond against such lease. FREEHOLD LAND Freehold land is held in perpetuity and the owner is free to sell, lease and mortgage the property to citizens and noncitizens subject to the Land Control Act 32:11. . The freehold title is inheritable, freely transferable, and registerable and does not lapse with time. State or tribal land is not capable of being freehold land. SECTIONAL TITLES The Sectional Titles Act, No. 7 of 1999 introduced a new form of ownership in immovable property in Botswana, namely the concept of sectional ownership of Buildings. Sectional title gives a holder of such title real rights in and to a specific portion of a building (a “section’), combined with a type of co-ownership in the common areas of such building Sectional ownership is increasingly being used in Botswana to deal with a growing shortage of land in urban areas and the tenure problems associated with multiple ownership in parts of a building. TRIBAL LAND CONVERSION OF CERTIFICATES OF RIGHTS INTO FIXED PERIOD STATE GRANTS A holder of a SHHA Certificate of Rights can convert such certificate or interest into Fixed Period State Grant provided that the property has been properly surveyed and is connected to water, electricity and sewerage services. , Such conversion is achieved by way of an application to the Attorney General's department. All land in rural areas, with the exception of land owned under freehold title or State land, is owned by the Government of Botswana and vested in various land boards established under the Tribal Land Act. Each land board has a specific area of jurisdiction and subject to the approval of the Ministry of Lands and Housing has rights to allocate land to citizens and non-citizens. CUSTOMARY GRANTS OF TRIBAL LAND REGISTERED LEASES In terms of the Deeds Registry Act of Botswana Cap 33:02, any lease over land, capable of running for 10 years or more and registered at the Deeds Registry is treated as This form of grant is available only to citizens and is made by the land board to citizens only for a certain number of years. Property held under a Customary Grant is not capable of being encumbered. However, on application being made to the Land Board and subject to a survey of the property having being conducted and a diagram in respect thereof having been approved by the Director of Surveys and Mapping, a Customary Grant may be converted to a Common Law Grant of lease. (See below) and the land subject to such grant can then be mortgaged. AGRICULTURAL LAND –LAND CONTROL ACT COMMON LAW GRANTS/ AGREEMENTS OF GRANT OF LEASE OF TRIBAL LAND Agricultural land may not be sold or leased to a non-citizen or a company in which less than 51% shares are held by non-citizens except with the consent of the Minister of Lands and Housing. Common Law Grants of lease are referred to as Agreements of Grant of Lease and are made by the land board to citizens or non-citizens (grants to non-citizens however require the specific consent of the Minister of Lands and Housing.) Such leases are granted for periods of anything between 15 to 99 years and once they are registered in the Deeds Registry, mortgage bonds may be registered in order to secure loans. Agricultural land in Botswana is usually held under Deeds of Transfer. However in areas adjoining urban areas, long leases over portions of Agricultural Land are often granted by the Lessor and such leases may be mortgaged. CONCLUSION The above is meant only as a brief introduction to the land tenure system in Botswana. The information given is general and professional advice should be sought before any action is taken. ARMSTRONGS ATTORNEYS In order for the lease to be registered, the leased area must be surveyed by a registered surveyor and the diagram approved by the Director of Surveys and Mapping and an application be made to the Deeds Registry for registration of the lease. Updated 2012 DISCLAI MER The material contained in this article is provided for general information only and should not be regarded as constituting professional advice by the partners or any employee of this firm. By reason of the fact that every situation in respect of which legal or professional advice may be required has a unique set of facts and circumstances, before embarking on any course of action you must always seek independent legal advice. 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