TABLE OF CONTENTS

Preface
Preface 3
Part I
DECENTRALISATION
A Decentralisation 4

PART II
LAND MANAGEMENT
A Assignment of Functions 4
B Planning 5
C Pegging 5
D Survey 6
E Valuation 6
F Cancellation of General Plans 7
G Land Allocation 8
H Commonage 9

PART III
LEASE AGREEMENTS
A Leases 9
B Lease with the Option to Purchase 10
C Terminable/Renewable Lease 11
D Homeownership Lease 14
E Addendum to a Lease 14
F Early Occupation 14
G Cessions 15
H Service of Notice 15
J Signing of Lease Agreements 15
K Enforcement of Lease Conditions 16
L Lease Offer Withdrawal 16

PART IV
TITLE
A Title 16
B Early Title 17
C Stamp Duty 18
D Cancellations 19

PART V
WAY LEAVES
A Way Leaves 19

PART VI
LAND ACQUISITION
A Expansion of an Urban Settlement 20
B Purchase of Land 20
C Compulsory Acquisition 21
D Incorporation of Land 21
E Excision of Communal Land 21

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 PART VII
OTHER MATTERS
A Financial Matters 21
B Gender Equity and Sensitivity 22
C By-laws 22
D Environmental Matters 22
PART VIII
FORMS AND APPENDICES
UL 1 Application to lease or acquire Council Land
UL 2 Application for an extension of a lease
UL 3 Declaration by the Purchaser
UL 4 Declaration by the Seller
UL 5 Application for a Way Leave
UL 6 Application for a Cession
UL 7 Cancellation of a General Plan
UL 8 Commonage Record
UL 9 Application to join the Waiting List
UL 10 Addendum to a Lease
UL 11 Application for Early Occupation
UL 12 Application for Title Cancellation
Appendix A Example of a Lease with the Option to Purchase
Appendix B Example of a Terminable/Renewable Lease
Appendix C Project Proposal Format
Appendix D Example of a Home Ownership Lease
Appendix E Example of a Way Leave
Appendix F Excision Application Format
Appendix G Waiting Lists Format

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 PREFACE

The Government of Zimbabwe attaches great importance to allocation and proper

management of all urban land. This Manual provides an operational tool to assist Local
Authority in the day to day management of land. It is a step by step explanation to be
followed in order to ensure uniformity in land management across the country. This
Manual will also enhance compliance, with national policy and aspirations, by all Local
Authorities. Government shall use the same Manual in monitoring land management and
development.

It is the Ministry’s belief that all Local Authorities realise land as a key element in urban
development and that it is a finite resource. The development of any community or nation.
therefore depends on the prudent and equitable utilisation of land.

While the manual will be the guiding principle in land management all Local Authorities
activities shall be guided by the following core values :-
4 Transparency
4 Accountability
4 Integrity
4 Justice
4 Non-discrimination

In decentralising the administration of land management to local authorities, the

Government of Zimbabwe has shown confidence in its own system of local government and
it is incumbent upon each local authority to display the qualities required for effective
management to show this confidence is not misplaced.

Dr V. Hungwe
Permanent Secretary for Local Government,
Public Works and National Housing

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 PART I
DECENTRALISATION OF URBAN STATELAND
In pursuance of Government’s decentralisation policy, The Ministry of Local Government,
Public Works and National Housing is decentralising the functions related to Urban
Stateland to local authorities. Since the decentralisation program is a lengthy and
expensive process, the exercise shall be executed in two phases :-

PHASE 1: HAND OVER OF ADMINISTRATIVE FUNCTIONS

On handing over the administration of Urban Stateland, the following functions shall
become the responsibility of the local authority :-
- The allocation and sale of Urban Stateland that has been handed over to the Council
but excluding Government’s 10% commonage
- Retention of revenue accrued from the sale and lease of Urban Stateland.
- The acquisition of land for urban expansion and public purposes.
- Infrastructure development and service provision.
- Preparation and signing of lease agreements.
- Processing of cessions
- Payment of compensation to displaced families in areas of new acquisition.

The Ministry of Local Government, Public Works and National Housing shall retain the
following functions :-
- Issuing of survey instructions.
- Issuing of title deeds.
- Cancellations of stand diagrams, title deeds and general plans.
- The management of existing leases.
- The management of Government’s 10% commonage.
- Excision and setting aside of Communal Land.

PHASE 2: LAND TRANSFER TO LOCAL AUTHORITIES

The legal transfer of land shall be done gradually and in phases in accordance with
resources available and the capacity of Surveyor General. Local authorities with a financial
capacity may request the Ministry of Local Government, Public Works and National Housing
for the surveying of the boundaries of urban centre or part of it, with the local authority
meeting the survey costs. Those local authorities without financial resources may be
assisted by funds from the Treasury. The Provincial Councils shall prioritise areas requiring
Government assistance and work shall be carried out as and when funds become available.

Upon transfer of Urban Stateland from Government to the local authority, all functions
carried out in relation to that Urban Stateland will become the responsibility of the local
authority. Government will however administer its 10 % commonage.

PART II
ADMINISTRATION MATTERS

A. ASSIGNMENT OF FUNCTIONS

A1. Committee responsible for Land Management

To promote efficiency and transparency in the allocation of land, a local authority shall
assign the functions of land management to a specific committee. The committee may be
an existing committee or a new committee could be established for this purpose. The
functions of the Committee will be as follows :-

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a. Land use planning
b. To manage the Council’s land bank including the identification of prime sites.
c. To monitor the use of the Housing Account and any project funds allocated to land
management related projects.
d. To recommend the allocation available land using the Council waiting lists.
e. To ensure that the waiting lists are being updated and are free from tampering.
f. To define and consider ‘exceptional cases’ when allocating land.
g. To consider and make recommendations regarding the acquisition of additional land.
h. To ensure compliance with approved layout, local and master plans.

A2. Department responsible for Land Management

Whilst the Chief Executive Officer [CEO] shall be responsible for land administration, every
local authority shall assign the functions of land management to a specific department of
Council. Ideally this department/section should be headed by a town planner/technician.

The functions of the department shall be as follows :_

(a) To undertake the administrative and professional functions relating to land
management.
(b) To provide professional and technical advice to the committee responsible for land
management.
(c) To maintain land registers.
(d) To maintain the waiting lists.
(e) To undertake the vetting of applicants.
(f) To ensure compliance with lease conditions.
(g) To requisition for survey.
(h) To undertake the functions relating to conveyancing [where land is transferred]

B. PLANNING

Local authorities shall be responsible for preparation of all local plans in terms of the
Regional, Town and Country Planning Act [Chapter 29:12]. The following options are
available to the local authority :-

a) Ideally, local authorities can employ their own town planners who would carry out the
planning functions.
b) The local authority can contract private town planners to carry out the planning
function.
c) The local authority can seek assistance from the Dept of Physical Planning through the
office of the Provincial Planning Office.

The Dept of Physical Planning, in terms of the Regional, Town and Country Planning Act,
should approve all layout plans prepared before they become operative.

All approved layout plans are public documents; they must be displayed for public
inspection and information in terms of Regional Town and Country Planning Act. When
dealing with any application, the committee responsible for Land Management should
ensure compliance with the layout plan.

C. PEGGING

Pegging is a process of demarcating stands to enable the beneficiaries to recognise the

boundaries of a stand they have been allocated. The Dept of Physical Planning in the case
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of Urban Stateland usually carries it. It is different from title surveys as no survey diagrams
are approved. It is carried out in terms of the Regional, Town and Country Planning Act.

Pegging is carried out as a temporary measure, to allow for the allocation and
development prior to survey. Whilst this is acceptable, the local authority will have to be
very strict on monitoring developments and the lease agreement will have to clearly state
that the stand is pegged and not surveyed.

For local authorities to have stands pegged, the following are possible option:-
a) Where the local authority has a town planner, the town planner’s office may carry out
the pegging.
b) The local authority may hire private town planners to do the pegging.
c) The local authority may seek the services of the Department of Physical Planning.

D. SURVEY

Prior to the transfer of Urban Stateland to local authorities, survey of Urban Stateland
shall remain the responsibility of the State. Stateland shall be surveyed at the request of
the local authority and at the cost of that local authority.

When the local authority requires a piece of land to be surveyed, it shall send a survey
requisition to the Ministry. All local authority requests should be made using form UL 6.

Following the transfer of land, the local authority shall be responsible for the survey
function. In undertaken a survey the Council can use the following options :-
a) It can employ its own surveyor
b) It can hire the Surveyor General’s Dept.
c) It can contract private surveyors

Due to the high cost of survey, the local authority has two options for cost recovery :-
a) The local authority can pay for the survey and recover the costs in the price of the
stand.
b) It can ask the potential beneficiaries to pay for the survey in advance. Where this is
done it should be included in the agreement with the beneficiary.

E. VALUATION

The valuation of land is carried out to facilitate the disposal or lease of land or properties.
In undertaking this function, the Council may :-
a) Employ a qualified valuer registered in terms of the Valuers Act 3:22
b) Contract a qualified and registered valuer to carry out the required valuation.
c) Seek assistance from Government valuers.

It is imperative that market rates be charged on land to be leased or sold. Special

consideration could be made to land required for such purposed as registered charitable
organisations, churches or public utilities etc. Where the price of a stand is dropped for a
purpose other than a church, a registered charity or public utility, authority to dispose of
the land, at below market value should be sought from the Minister.

When setting the valuation of a piece of land which is surveyed and serviced, the Council
should include the cost of surveying and servicing in the price of the stand, whether the
stand is being purchased or leased.

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A Council may add a profit margin to the value of serviced low density housing,
commercial and industrial stands, provided that the profit is used for the cross
subsidisation of low income and social housing.

The same principles for valuation apply when reviewing rentals.

F. CANCELLATION OF GENERAL PLANS

A general plan simply refers to a true, accurate and legal representation of surveyed land
in a given area. The cancellation of a general plan is the process by which the general plan
is amended to reflect a change in the position of surveyed stands and is done for the
following reasons :-
a) The general re-planning of an area.
b) The land is to revert to the State.
c) The consolidation of one or more stands into one.

Before land is transferred to local authorities, the cancellation of general plans shall
continue to be done by the Ministry of Local Government, Public Works and National
Housing. When the cancellation of a general plan is required, the Council should submit a
request using Form UL 7.

When land is transferred to a local authority, the cancellation of general plans shall be
done, by the Local Authority, in terms of Land Survey Act [Chapter 20:12]. This will involve
the following procedure :-
a) The local authority shall write the Surveyor General, advising him of the plan to be
cancelled and the reasons for cancellation.
b) a request for a draft notice for publication is also made to the Surveyor General.
c) The responsible officer should prepare the notice using the draft provided by the
Surveyor General and in a situation where he intends to add information this must be
done with valid reasons and with the consent of the Surveyor General. The draft notice
must be in the name of Chief Executive Officer who should seek legal advise in the
drafting process.
d) Following the advertising process, when Council has considered objections and made its
resolution, a submission is made to the Surveyor General.
e) The Surveyor General will then undertake the process and will inform the Council of
the cancellation.

The local authority will meet all costs relating to the cancellation of a general plan.

Before undertaking a cancellation of a general plan, the abutting property owners and
occupiers should be consulted, in writing, of the intended changes. The Council shall also
advertise the proposed cancellations and calling for objections. A period of twenty-one
days from the date of the first advert shall be allowed for the submission of objections.
The advertisement should take the following form :
a) The first advertisement should appear on the same day in the Government Gazette and
a local newspaper.
b) The second advertisement should appear one week later in the local newspaper only
c) A notice should be posted on the Council notice board.

Where a member of the public or an abutting owner/occupier objects to the proposed

changes, the committee should consider these objections and then make its
recommendation to the Council who will decide the matter.

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G. LAND ALLOCATION

G1. Waiting List

All Councils will be required to maintain two waiting lists for land allocation; one for
housing and one for industrial/commercial stands. The waiting list should be kept using the
format prescribed in Form UL 10. The waiting list should be updated annually and all those
of the waiting list should be informed of their priority number. The waiting list should be
open to public inspection and should only be amended with Council resolution.

In order to join a waiting list, an applicant would be required to apply using Form UL9. In
order to maintain one’s name on a waiting list a renewal should be done annually.

The allocation of stands should always be done in accordance with the waiting list. Where
the Council wishes to allocate a stand in exceptional circumstances, to a person who is
either not on the waiting list or to a person on the waiting list who warrants superseding
others, this can only be done with the support of a resolution of the full Council and in an
open session [the Council may not resolve into committee to deal with an issue of
exceptional cases].

Allocation for commercial and industrial stands shall be done in such a manner as to
empower indigenous entrepreneurs and to create employment. Care must be given that
women are not discriminated against. It must be ensured that any affirmative action is
offered in an open, fair and transparent manner. The waiting list system is also applicable
here.

G2. Priority/Considerations for Allocation

The following are the main criteria to be used when allocating land :-
a) Applicants for residential stands should be current residents of the area or own
commercial/industrial property or be gainfully employed in the local authority area
b) Applicants must be on the waiting list.
c) Applicants should demonstrate to the local authority’s satisfaction, that they have the
ability to develop the stand.
d) Applicants must be Zimbabwean citizens, have permanent residence or an investment
certificate issued by Zimbabwe Investment Centre/Export Processing Zone Authority.

G3. Exceptional Circumstances

Notwithstanding the need to adhere to the waiting lists, a Council may waive this standard
rule under special circumstances such as:-
a) In the case of a disabled or disadvantaged person.
b) Workers in essential services such as ambulance personnel, fire protection and police
whose jobs are not only vital to the community but who would ideally reside in close
proximity to their area of work. This should only apply to those acquiring their first
homes.
c) A registered Co-operative
d) Potential Land and Housing Developers who demonstrate ability to service land and
come up with own housing schemes, with a socio-economic benefit to council and the
community at large.
e) Any other special situation, which Council deems, should be given high priority and
which should be based on public good, public safety, public morality or social justice.
This criterion must be public knowledge and applied generally to avoid abuse.

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G4. Allocation/sale of prime land.

Disposal of prime sites such service stations, hotel and casino sites and land adjacent to or
within major tourist attraction sites, town centres and any other such prime land, shall be
subject to open and competitive tender.
The Council shall designate prime sites on advice from the committee responsible for land
management and shall determine when such sites should be disposed of or allocated. Once
a decision to dispose of/allocate a prime site has been made, the Chief Executive Officer
shall insert an advertisement in a national newspaper and on the Council Notice Board,
inviting bidders for the acquisition of the site. Such advert shall have the following key
features
- Property description and size.
- Intended land use.
- Minimum building value.
- Whether the property is for sale or on lease.
- Closing date of tender submissions

The Council shall follow normal tender procedures in dealing with the disposal of prime
land.

H. COMMONAGE

In all local authority areas, Government shall retain land, known as the 10% commonage,
for its own use. The 10% commonage refers to the 10% of all vacant and undesignated
Urban Stateland at the point of transfer. To determine the 10% commonage, the boundary
of the centre is defined. Thereafter all the vacant/un-alienated Stateland is identified
(excluding land previously reserved for government use). Ten percent of such land is
calculated and a commonage account is then opened using the format shown in form UL 8.
The 10% Commonage account shall be signed for by the Chief Executive Officer and the
District Administrator. The account is kept by the District Administrator.

No local authority may allocate commonage. This is the prerogative of the Minister of Local
Government, Public Works and National Housing.

When a Council acquires additional land using funds from the State or the National Housing
Fund, 10% of the acquired land shall be added to the commonage register.

PART III
LEASE AGREEMENTS

A. LEASES
A lease is a written legal agreement by which the use of a building or a piece of land is
given by its owner or custodian to someone under certain agreed conditions in return for
rent.

The reason for granting a lease, in preference to simply transferring the undeveloped land,
is to prevent private land banking and the acquisition of land for speculative purposes.
State or Council land, which is general cheaper than private land, is limited and should be
available to those who wish to develop within a Council area. Should an individual wish to
land bank, they should do so using private land.

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A1. Application Procedure

Application to Acquire or Lease Land forms [form UL1] shall be kept and be made available
to the public for use when submitting an application for a stand. The applicant must
complete all sections of the application form. The completed form must be submitted to
the relevant department, who should undertake vetting and include the application on the
agenda of the next committee meeting. For the purposes of this section, vetting shall
involve the checking to ascertain the correctness of the information contained in the
application form. This should involve deeds checks, checking Council records, verification
of financial status etc.

The committee responsible for land management should check the following:-
- the applicant is on the waiting list or meets the Council’s special criteria
- the applicant does own another residential property
- the applicant has the ability to develop the stand applied for
- the application is appropriate
The committee would make recommendation to the full council for resolution. The
recommendation should include the nature of agreement and any special conditions to
apply.

The department will then proceed to draw up the document of agreement for signature.

A2. Types of Lease Agreements

There are three main types of lease agreements currently in use, namely :-
- Lease With Option to Purchase
- Terminable/Renewable lease
- Home ownership lease.

B. LEASE WITH THE OPTION TO PURCHASE

B1. Preparation of Lease with Option to Purchase

A Lease with Option to Purchase is drawn in duplicate. It must incorporate all the terms
and conditions on which the offer is being made. It must state pertinent aspects such as
duration of the lease, purchase price, monthly or annual rentals payable and the
conditions of acceptance. An example of a lease with the option to purchase is contained
in form Appendix A.

The procedure to be undertaken is as follows :-

- the lease agreement is prepared in the name of applicant.
- valuation and development conditions are obtained from a registered valuer and
qualified town planner
- the lease agreement form is completed without error
- a schedule development conditions and a copy of site plan that depicts the stand is
pasted to the agreement
- the Council resolution number is written on the lease agreement

B2. Duration of Lease

The Council shall determine the duration of a lease based on the type of stand and the size
and nature of the development. The Council may grant permission for the extension of the
lease should this be deemed necessary. Council should take note that the duration of a
lease affects the revenue inflows.

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B3. Use

This clause should clearly spell out to what use the stand is put to, as recommended in the
layout plan or by the town planner. Should the Council wish to change the use of a stand,
this should be carried out in terms of the Regional, Town and Country Planning Act.

B4. Rental payable

The Council shall determine the rentals to be paid on any lease with the option to
purchase with the rental being credited to the final price of the stand. The Council shall
determine the level of rentals and the timing of payments. The Council should ensure that
the rentals do not total more than eighty percent of the purchase price of the stand, to
avoid the legal complication of a person paying the total purchase price before duration
the lease is concluded.

Where a lessee fails to complete the development of a stand, the Council may extend the
lease period. When deciding on the extension of a lease period, the Council shall
determine whether the stand is to be revalued. If the stand is to be revalued then a new
lease agreement shall be drafted and lease rentals shall accrue to the new purchase price.
Should the stand price remain the same then rentals shall not accrue to the purchase
price. The level of development, on the stand concerned, shall guide the Council in
deciding as to whether a new lease or an extension is granted.

B5. Application for Extension of time to Commence Building

Normally the lease agreement shall provide that development shall commence within
twelve months from the commencement of the lease agreement.

If a developer fails to commence development he/she shall apply for an “extension of

period to commence building” using the prescribed format [Form UL 2] The applicant must
clearly state reasons why s/he failed to commence building within the specified time. The
Committee shall consider the reasons advanced and make recommendations to the Council
as to whether or not to grant the extension. The Council may delegate the granting of
extension to the Committee. If an extension is not granted the lease is then cancelled. The
cancellation of a lease does not preclude the lessee from reapplying and being granted a
fresh lease with new conditions and with a fresh valuation.

C. TERMINABLE/RENEWABLE LEASE

A Terminable/Renewable lease agreement is offered to a developer to utilise local

authority land for an agreed period, while paying annual/monthly rentals for the use of
such land. This type of lease may be terminated before the expiry of the lease agreement
if the land is urgently required for other developments. The lease period may also be
extended at the expiry of the lease agreement at the discretion of the Lessor provided the
Lessee applies for the renewal of the lease three months in advance. The local authority
shall not unreasonably withhold such renewal. The maximum duration of a terminable
lease is nine years and this period may be renewable.

Terminable/Renewable lease agreements are offered under the following circumstances :-

a) On land that is not required by the local authority for immediate development. Such
land may be required for such expansion and development of a town.
b) On land that has a major river or lakeshore frontage, which needs protection.
c) On prime land that is national importance. This may include land adjacent to national
shrines and other sacred places.

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d) When the applicant intends to engage in an activity of a temporary nature such as
grazing, poultry production, sand abstraction etc. or where the nature of the activity
does not require large capital investment in the form of permanent structures.

C1. Application for a Terminable/Renewable Lease

All applications shall be on an application form UL 1. The applicant must attach the
following documents:-
a) A comprehensive project proposal that should highlight the nature of activity, the
number of jobs created, benefits to the community and projected cash flow. Project
proposals should follow the guidelines given in Appendix C.
b) A comprehensive Environmental Impact Assessment Report, which should highlight all
the possible negative impacts that may arise on the land, air and water bodies as a result
of the project and the proposed measures to be taken to address these impacts. This
should be critically examined and advice could be sought from the Dept of Natural
Resources
c) Where the project involves foreign investment, an Investment Certificate issued by the
Zimbabwe Investment Centre or where the project has been granted a Zimbabwe Export
Processing Zone Status, a certificate issue by the Zimbabwe Export Processing Zone
Authority.
d) Comments and a copy of site plan from the local authority’s planning section or the
Department of Physical Planning.
e) Comment from the local traditional chief where project activity may interfere with
traditional sacred places or traditional values and beliefs.
f) A reclamation plan that ensures the land and the environment to be usable following
the expiry of the lease. Council may seek a security deposit to enable it to undertake
reclamation if the lessee fails to do so.

C2. Approval of Terminable/Renewable Lease

The officials shall ensure that the application form and attachments are properly
completed, the development conditions are secured and a valuation is available. The issue
is then referred to the committee.

The Committee shall consider the application on the basis of public good and
appropriateness. The committee should also ensure that the reclamation plan is viable.
They need not use the waiting list as the lease will not result in title being granted. All
terminable leases must be considered as temporary.

If the Committee agrees to the application, it recommends the application to full council
approval.

C3. Preparation of a Terminable Lease

Each terminable/renewable lease agreement must have conditions that directly relates to
its activities. The officials shall seek and adhere to advice from the appropriate agencies
such as the Veterinary Dept, the Dept of Natural Resources, the Ministry of Defence,
Traditional Leaders, the Forestry Commission, Zimbabwe National Water Authority etc.

A sample of Terminable/Renewable lease for a tourist resort stand with a fragile

lakeshore frontage is attached as an example Appendix B.

The following are some of the key clauses for a Terminable/Renewable Lease:-
- Lease Period

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 - Rentals payable and rent review system
- Land usage and restrictions
- Renewal/Termination
- Notice periods to be given
- Indemnity of Lessor
- Compensation for developments undertaken
- Reclamation responsibilities

The notice period to be given by either party should be determined by the intended land
use. For example, if the land is being used for agricultural purposes then it would be fair
to give ‘one seasons’ notice.

The process of offer and acceptance of a Terminable/Renewable lease agreement are the
same as those for a Lease With Option to Purchase.

C4. Monitoring of Development

As with the case of a Lease With Option to Purchase, the local authority shall ensure that
the Lessee abides by all conditions of the lease agreement and that all developments are
carried out in terms developmental conditions, approved plans and any other relevant
local authority by-laws. Council should also monitor the environmental impact and cause
remedial action to be taken where damage has occurred.

C5. Rent Reviews

The local authority shall have the right to vary rentals from time to time in terms of the
clause on Rentals, provided such variation does not stifle operations of the lessee and at
the same time the local authority must get a fair return from the use of its land. The
process of undertaking rental reviews in cover in Part II, Section E.

C6. Cancellation of a Terminable/Renewable Lease

A lease agreement may be terminated for the following reasons:

a) At the expiry of the lease period
b) If the lessee has caused a nuisance to the local authority or owners of adjacent
properties or members of the public.
c) If the Lessee violates provisions of the lease agreement and does not take measures to
address such violations upon being given notice by the responsible local authority.
d) The lessee does not take appropriate measures to protect the environment
e) When the land is required for other important uses.

In all cases of termination, the local authority should adhere to the agreement and hence
when drafting agreements care should be made to ensure the facilitation of termination
upon breach.

Terminations should be sanctions by the committee to ensure ‘fair play’.

C7. Renewal of a Terminable lease

The Lessee shall apply for renewal of lease agreement at least three months before the
expiry of the lease or as provided for in the “Renewal” Clause of the lease agreement.

The committee shall consider the following :-

a) if the Lessee adhered to the provisions of the lease agreement during his tenure
b) if the project is still desirable
c) if the land is fully utilised

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d) if the public benefit from the project
e) if the land is not yet required for other local authority or public purposes

The committee shall make recommendations on the matter for consideration by Council. If
the Lease renewal application is granted, an addendum to the Lease agreement shall be
prepared. In renewing a Terminable/Renewable lease, the Council shall also review
rentals, security deposits and conditions. Any changes effected should be included in the
Addendum. An addendum is issued using Form UL 11.

D. HOMEOWNERSHIP LEASE

A Home Ownership Lease Agreement is one where the tenant usually pays rentals over a
period, up twenty five years, to the local authority which rentals accrue towards the
redemption of the full cost incurred by a local authority in the construction of the
superstructure and the provision of services.

D1. Preparation of home ownership agreement

In preparing this agreement the following shall be considered :-

a) the cost of improvements [the superstructure and the services] plus the unimproved
valuation of the land
b) the right of cession should be provided for.
c) Home ownership programmes should be offered to first property buyers only.
d) Provision must be made for payment of supplementary and service charges including
insurance instalments.
An example of as Home Ownership Agreement is given in Appendix D.

E. ADDENDUM TO A LEASE AGREEMENT

An addendum to a lease agreement is literally an amendment of specific clause/s of the

lease agreement. An addendum can also be used to add or delete conditions on a lease
agreement. Since the addendum becomes part of the lease agreement when ratified, it has
to be signed by both parties to the lease agreement and attached to the original copies of
the lease. An addendum is issued using Form UL 10.

The alteration of a lease must be supported by an appropriate Council resolution.

F. EARLY OCCUPATION

Early Occupation means an applicant is authorised by the local authority to develop a

stand before a lease agreement is finalised. It applies to all types of lease except
Homeownership Leases. It does not necessarily allow for an applicant to take up residence.
It is granted to the applicant on the basis that the local authority would have delayed the
processing of the lease. Delays may be the result of having to hire the services of a valuer
or a planner. Delays should not be as a result of incompetence. The applicant will be
required to make an undertaking that he would agree with all the conditions of the lease
once it is finalised.

Local authorities shall only grant early occupation on properties that are serviced in such a
way to facilitate and accommodate the development the applicant wishes to undertake.

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Council shall determine at what level the granting of early occupation should be resolved,
ie Full Council, Committee, Chief Executive or Departmental Head, and where necessary
delegate the power by a Council resolution.

The applicant shall apply to local authority using form UL 11.

G. CESSION

Cession means change of tenure of property from the lessee to another with the consent of
the local authority.

A cession of property can be between a deceased estate and second person. If the cession
involves a deceased lessee then the appointed heir, wishing to cede the lease should bring
the death certificate for the lessee and the approved Estate Distribution Plan from the
court. The heir may cede the lease to him/herself.

Except in the case of a deceased estate, local authorities shall only authorise a cession
when the cedant has partially developed the stand and before the expiry of the lease
period; an undeveloped stand may not be ceded.

The ceding party apply to the Council using form UL 6 but before cession is authorised
local authorities should establish the following :-
- the person applying for the cession is in fact the lessee. This can be done by checking
signatures on the application and original lease agreement.
- the lessee is up to date with lease rentals
- in the case of a deceased estate, that the application for cession is from the properly
appointed heir [the executor dative is NOT the heir]

Council shall determine at what level the granting of a cession should be resolved, ie Full
Council, Committee, Chief Executive or Departmental Head, and where necessary delegate
the power by a Council resolution.

H. SERVICE OF NOTICES

All leases shall include a section of service of notice. It is vital to state that any notice,
letter, process or demand required to be served or delivered to or upon either part shall
be deemed to sufficiently delivered or addressed as the case maybe :
a) to the lessor at the Council offices, and
b) to the lessee at the address stated on the application form

J. SIGNING OF LEASE AGREEMENTS

Once the officer responsible has prepared the lease document and has satisfied himself
that all the important clauses have been inserted, he writes the applicant a letter of offer
to come and sign the lease.

The lessee pays the appropriate lease rental in advance. The CEO asks the lessee to
positively identify him/herself and produce proof of payment for the lease. Two copies of
the Lease Agreement are signed by the lessee and the CEO and the signatures are
witnessed. When signing a lease agreement, every page and the site plan shall be initialled
and every entry on every page [where fill in forms are used] shall also be initialled by both
parties.

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The lessee is given the original copy of the lease and the Council files the second copy for
their records.

K. ENFORCEMENT OF LEASE CONDITIONS

Local authorities should make sure that the Lessee abides by the provisions of the lease
agreement and the local authority’s by-laws, for example development is carried out in
terms of approved plans, that rentals are paid on time etc. This will require regular
inspections.

Where a breach of agreement is discovered the Council shall bring the breach to the
attention of the lessee and should direct remedial action to be taken. Where a lessee fails
to comply with the directive a Council may take any of the following actions :-
a) Cancel the lease agreement.
b) Refer the matter to the courts.
c) Carry out the remedial work itself and bill the lessee.
d) Issue an Enforcement order in terms of the Regional, Town and Country Planning Act.
e) Upon application from the lessor, regularise the development.

L. LEASE OFFER WITHDRAWAL

The withdrawal of a lease offer can only be affected before the lease agreement is signed.
A lease offer maybe withdrawn for the following reasons:-
a) When the applicant fails to accept the lease offer within the stipulated time given in
the letter of offer.
b) When allocation and lease offer were based on falsified information supplied by the
applicant.

The withdrawal of a lease offer will be determined by the CEO the Council, who shall
inform the Committee of the withdrawal and the reasons. When a lease offer withdrawal is
affected, the land becomes vacant land and shall be allocated to the next suitable person
on the waiting list. A second chance is usually given to the failed lessee.

PART IV
TITLE

A. TITLE
A title deed is a registered document, which is the only legal proof of ownership of land. In
order to be valid, it is required to be lodged with the deeds office. The granting of title
can only be done by the landowner and as such only those Councils that have had land
transferred to them will grant title. Prior to land transfer the Ministry of Local
Government, Public Works and National Housing will undertake the granting of title.

A1. Issuing title prior to land transfer

Prior to land transfer, the Ministry of Local Government, Public Works and National
Housing shall retain the responsibility of granting title. In exercising this responsibility, the
Ministry will require the local authority to undertake certain activities in preparation for
the granting of title :-
a) The principal building(s) have been completed in terms of the approved plans and lease
agreement
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b) The purchase price is fully paid
c) All rates, levies, charges and taxes owing to the local authority and the State have
been paid.

Once the local authority has satisfied itself that title should be issued, an application is
made to the Ministry of Local Government, Public Works and National Housing which
includes the following :-
a) A certificate confirming that the completion of building/s.
b) A receipt from Surveyor General as evidence that deduction fees were paid. This is a
fee paid by the applicant to the Surveyor General.
c) A fully completed declaration form from the purchaser [form UL3]
d) A certificate indicating that all rates, levies and taxes are fully paid
e) Sufficient revenue stamps to cover stamp duty and title registration fees.

The Ministry of Local Government, Public Works and National Housing, working with the
Attorney General and the Deeds Office will then effect the issuing of Title Deeds.

A2. Issuing of title following land transfer

When land is transferred a local authority, the local authority shall be responsible
for the entire process of the granting of title deeds. In this regard it will work
through its lawyers with the Deeds Office.

The local authority will prepare the following documentation for its lawyers :-
a) A certificate confirming that the completion of building/s.
b) A receipt from Surveyor General as evidence that deduction fees were paid. This is a
fee paid by the applicant to the Surveyor General.
c) A fully completed declaration form from the purchaser [form UL 3]
d) A fully completed declaration form from the seller ie the Council [form UL 4]
e) A certificate indicating that all rates, levies and taxes are fully paid
f) Sufficient revenue stamps to cover stamp duty and title registration fees.

The Council lawyer will then lodge the application with the Deeds office.

B. EARLY TITLE

This is a provision whereby title is granted before the building conditions of a lease
agreement are complied with. The only reason for granting early title is to enable a stand
developer to borrow against the land to facilitate the development of the stand.

B1. Issuing of early title before land transfer

Before land is transferred to local authorities, the issuing of early title shall be the
responsibility of the Ministry of Local Government, Public Works and National Housing.
Where early title is sought, a local authority shall submit the following to the Ministry of
Local Government, Public Works and National Housing :-
a) A fully completed declaration by purchaser form [form UL3]
b) A letter of confirmation that a bank approved a loan application by lessee.
c) A receipt from Surveyor General as evidence that deduction fees were paid. This is a
fee paid by the applicant to the Surveyor General.
d) A certificate indicating that all rates, levies and taxes are fully paid
e) Sufficient revenue stamps to cover stamp duty and title registration fees.

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The Ministry of Local Government, Public Works and National Housing, working with the
Attorney General and the Deeds Office will then effect the issuing of early title.

B2. Issuing of early title after land transfer

Following the transfer of land to a local authority, the local authority shall be
responsible for the issuing of early title.

The local authority will prepare the following documentation for its lawyers :-
a) A letter of confirmation that a bank approved a loan application by lessee.
b) A receipt from Surveyor General as evidence that deduction fees were paid. This is a
fee paid by the applicant to the Surveyor General.
c) A fully completed declaration form from the purchaser [form UL 3]
d) A fully completed declaration form from the seller ie the Council [form UL 4]
e) A certificate indicating that all rates, levies and taxes are fully paid
f) Sufficient revenue stamps to cover stamp duty and title registration fees.

The Council lawyer will then lodge the application with the Deeds office.

It must be noted that early title is registered simultaneously with the mortgage bond and
the title will contain a restrictive clause preventing the grantee from selling the property
without the consent of the Ministry or the local authority depending on whether land has
been transferred or not.

C. STAMP DUTY

Stamp duty is a fee charged by the State for property registration.

In order to calculate Stamp Duty, the purchase price of the property must be known. The
Ministry of Finance and Economic Development sets the rate at which Stamp Duty is
charged.. The current rates are as follows :-

a) For the purchase price that is $1,00 up to $4999-00, the calculation is $0,70 per every
$100,00.
b) For the purchase price that $5000-00 but less than $15 000-00, the first $5000 is $35,00
and the balance is calculated as 3 divided by 100 multiplied by the balance.
c) For the purchase price above $15000-00 but less than $100 000,00, the first $15000, 00
is $335 and the balance is calculated as 5 divided by 100 multiplied by the balance.
d) For the purchase price above $100 000, 00 to infinite, the first $100 000 00 is $4585
and the balance is calculated as 6 divided by 100 multiplied by the balance.

Currently the title registration fee is fixed at $200,00

Council should note that the Finance Act [Chapter 23:04 ] makes provision for the
exemption from stamp duty for the transfer of land in certain circumstances. In deserving
cases, an application for exemption from stamp duty may be included in the process of.

D. THE CANCELLATION OF TITLE DEEDS AND EARLY TITLE

Title Deeds are cancelled in terms of the Deeds Registries Act.

The reasons for the cancellation are as follows: -

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a) The grantee could have failed to comply with fulfilling the early title provisions of the
Deed.
b) In the case of a sub division where the stand to be sub divided has Title.
c) Where Government acquires the land.

D1. PROCEDURE OF CANCELLATION OF TITLE DEEDS PRIOR TO TRANSFER

Where a local authority has resolved to cancel title, an application for such cancellation is
submitted to the Ministry of Local Government, Public Works and National Housing using
From UL 14. If the cancellation is at the request of the Surveyor General, copies of the
correspondence from the Surveyor General should be attached. The Ministry will then
complete the process for cancellation.

The Council will receive notification of the cancellation from the Ministry.

D2. PROCEDURE OF CANCELLATION OF TITLE DEEDS AFTER TRANSFER

The local authority applies to the Registrar of Deeds using form UL14. In its application,
the local authority makes a request for draft notice for publication from the Registrar of
Deeds. On receipt of the draft notice from the Registrar of Deeds the local authority
should seek legal advise in the final drafting of the notice.

The local authority shall advertise the intended cancellation in the following manner :-
- The first advertisement should appear on the same day in the Government Gazette and
the local newspaper.
- The second publication should appear a week later in the local newspaper only
A period of thirty days from the date of publication should be allowed for submission of
objections.
The officer should cut all advertisement notices and paste them on blank paper as proof of
advertisement is required as part of the application.

Thirty days after the publication of the advertisements, the Council is required to sit and
consider any objections it receives and decide upon them. Copies of the objections and the
deliberations shall form part of the application.

The Council shall receive notification of the cancellation from the Registrar of Deeds.

PART V
WAY LEAVES
A. WAY LEAVES

A way leave is an unregistered agreement between two parties for which a recognition fee is
paid annually. Way leaves are permits granted to parastatals, companies and registered
organisations to install transmission lines, railways, roads etc across local authority land.

The applicant submits an application, using the form UL 5, to the local authority.

In dealing with an application the Council should establish the ownership of the relevant
land. Where the land belongs to or is administered by the local authority, the officer

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should ascertain whether the granting of a way leave is appropriate. The application is
then referred to the Committee together with a valuation and the draft conditions for the
granting of the way leave. The Committee should also make provision for any
compensation required to compensate land users disadvantaged by the granting of the way
leave. Where the land is not owned or administered by Council, the applicant should be
referred to the landowner.

If the Council resolves to grant a way leave, the applicant is informed by way of written
letter. The applicant will be required to sign an agreement of way leave, which should
contain the following :-
a) The annual fee
b) The tenure of the agreement
c) The conditions of the agreement
d) The options for renewal
e) Compensation issues
An example of a Way Leave is contained in Appendix E.

Whenever a renewal of way leave is granted the agreement should be revalued.

PART VI
EXPANSION OF URBAN SETTLEMENTS
A. EXPANSION OF AN URBAN SETTLEMENT

A Council may resolve to expand an urban settlement having identified a need for such
expansion. The need for land can be identified for the in following circumstances :-
- following the identification of a need for a project such as a sewerage plant or dam.
- for the expansion of residential or industrial areas of a settlement
- where an adjoining land owner wishes to be incorporated into an urban settlement
- for the purposes of land banking

In reaching its decision to expand, a Council should be guided by its Master or Local Plan.

There are four ways of acquiring land for urban settlement :-

a) By the purchase of the land
b) By the compulsory acquisition of the land
c) By the incorporation of the land
d) By the excision of Communal Land

In preparation for all instances of acquiring additional land, a Council will be required to
budget for the acquisition, including the legal and publication costs of the transaction and
for the resultant compensation.

B. PURCHASE OF LAND

Both the Urban and the Rural District Councils Acts bestow on Councils the power to
acquire land. In acquiring land, the Council should adhere to the provision of the relevant
Act [Section (1) of First Schedule of Rural District Councils Act or Section (1) of the Second
Schedule of the Urban Councils Act].

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C. COMPULSORY ACQUISITION OF LAND

The President may compulsorily acquire land for urban settlement in terms of the Land
Acquisition Amendment Act [Chapter 20:10]. In order to request the President to
undertake the compulsory acquisition, a local authority should resolve to request for the
acquisition of identified land and should submit a detailed application to the Minister of
Local Government, Public Works and National Housing. Where the land to be acquired is
outside the boundary of an Urban Council, compensation for improvements is paid. Where
the land to be acquired is within the boundaries of an Urban Council, full compensation is
paid.

The land will then be acquired by the State and the State will transfer the land to the local
authority. The acquisition by the State does not mean that the Council will not have to
bear the compensation costs.

D. INCORPORATION OF LAND

Land is incorporated into a local authority or a ward by a change of boundary. This is done
by the President by way of a Proclamation. In order to secure an incorporation, a Council
should resolve to incorporate the land and follow the procedure set out in Part II of the
Urban Councils Act or Part XIV of the Rural District Councils Act. All incorporations require
extensive research and consultations.

E. EXCISION OF COMMUNAL LAND

Communal Land is vested in the President, and as such it requires his consent whenever it
is being excised or set aside.

All local authorities in need of Communal Land to be excised shall resolve and submit an
application for excision to Ministry of Local Government, Public Works and National
Housing using the format contained in Appendix F.

Before making the application, the local authority shall consult with the local traditional
leadership to ensure all the necessary traditional rituals and observances are carried out.

Although Communal Land is not paid for, a local authority will be required to meet the
cost of compensation for improvements made by people affected by the excision. In
addition, the Council will be required to find alternative land for the resettlement of the
affected households; this maybe in the form of communal land, resettlement land or urban
stands.

PART VII
OTHER MATTERS

A. FINANCIAL ARRANGEMENTS

All local authorities should establish dedicated accounts to handle the revenue raised from
the administration of land. This account shall be kept in accordance with the laid down
accounting and budgetary procedures.

Funds raised from land revenue can be spent in the following manner :-

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 - forty percent of income can be used to cover administrative costs such as wages for
land related staff, office equipment and supplies, work related expenses etc.
- sixty percent shall be spent on capital projects such as on and off site servicing, land
acquisition, payment of compensation to families affected by expansion, housing
construction etc.

A Council may charge fees for the hearing of land related matters provided such fees are
part of the Budget. Fees, levies, charges and taxes on land and services related to land
may also be charged in the same manner.

Financial Statements for the account relating to land management should be regularly
presented to the Committee to enable them to monitor financial matters and to ensure
that the 40/60 spending ratio is adhered to.

B. GENDER EQUITY AND SENSITIVITY

In line with Government Policies on gender equity and sensitivity, all residential stands
allocated to persons who are married should be allocated jointly in the name of both
spouses. This prevents the sale of a matrimonial home without the consent of both
spouses. It should be noted that where a married woman wishes to acquire a property in
her own right, she should not be prevented from doing because of the ‘one person, one
stand’ rule. A single woman should not be discriminated against in the allocation of
residential stands.

C. BY-LAWS

Each Council is responsible for making its own by-laws for issues relating to land
management. Areas that may require by-laws are as follows :-
a) Permits for certain activities on Council Land
b) Removal of unauthorised buildings on Council Land
c) Regulation and control of occupation and use of land or buildings
d) Excavations
e) Plans specifications and structural calculations
f) Drainage and sewerage provisions
g) Water supplies
h) Use of buildings
i) Numbering of buildings
j) Work in the vicinity of roads
k) Parks, recreation grounds, caravan and camping grounds
l) Building standards
m) Servicing standards
n) Dangerous and neglected buildings
o) Temporary structures

The procedure for making by-laws is set out in Part XI of the Rural District Councils Act and
Part XVII of the Urban Councils Act. When preparing by-laws a Council should adhere to
national policies and standard levels.

D. ENVIRONMENTAL CONCERNS

A local authority should be mindful of sound environmental policies whenever it exercises

it land management functions. Areas requiring special attention include the following :-
a) The protection of water sources
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b) The prevention of pollution
c) The maintenance of open spaces
d) The protection of areas considered to be of cultural and environmental value
e) The effective disposal of waste
f) The effective drainage of excess water

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