LAND LAW FORUM 11 DECEMBER 2022

1.Discuss the differences between leasehold title and freehold title.

Leasehold title difference Freehold title

When the State disposes of a piece of Meaning Act 56 of the NLC 1965 clearly
land to an individual for a certain period states that all State lands are
not exceeding 999 years, the land is said owned by the State authority.
to have leasehold title However, when land is disposed of
by the authority to an individual
for an infinite period, it will then
be a freehold title
No ownership rights on the land by the Ownership Ownership of the land is the
leaseholder owner himself
The land goes back to the State authority. Ownership Ownership remains with the
If the owner wants to retain the land, he after the expiry owner
will have to apply for a leasehold lease
extension before the lease expires. If the
renewal is granted, he can extend his
lease in exchange for a premium payable
based on the market value of the land
Leasehold title has a specific timeline (30, Lease period Not applicable
60, 99, or 999 years) of ownership
Leasehold title owners need to abide by Freedom to use No restriction
stricter rules and regulations. The usage the property
and type of activities allowed on the land
are restricted by the rules stated on the
leasehold title
If the State authority sees that the buyer Can it be No
is unfit to take care of the land, the lease forfeited
can be forfeited for non-performance.
Transfer of property from one to another Transfer of The owner has full legal rights to
is relatively difficult, and transfer of property either transfer or sells the
leasehold rights is done through attorney property
power
The leaseholder may be required to pay Rent The owner does not need to pay
certain rent towards land as he does not any rent to anyone as he owns the
own land land on a freehold basis.
Hard to get any loan Mortgage Loan Banks or Financial Institutions take
greater comfort because of
freehold ownership in granting
loans

2. Discuss types of TOL?

There are two different forms of TOL:

a. ordinary use TOL- It is stated under Section 67 as a TOL that expires annually from the day it
was first issued and can be renewed three times or more with the State Authority's consent.
Form 4A can be used to apply for it.
b. special use TOL- ordinary use, including residential use and agriculture. In addition, Section
69's special use provisions include a permit for the extraction and removal of rock materials
 LAND LAW FORUM 11 DECEMBER 2022

within five years or longer with State Authority approval, and this permit can be obtained
using Form 4B.

3. What type of land that can be dispose?

The land that can be disposed of has been provided under Section 42 (1) NLC which is State Land
defined under Section 5 as all land in a State including riverbed, foreshore and seabed in a state but
not alienated land, reserve land, mining land and forest reserve.

4. Why land disposal important?

The disposal of land by the is an important part of the government’s drive to improve its estate
management and create an efficient, fit-for-purpose and sustainable estate that meets future needs.
This means disposing of surplus land and buildings in a way that delivers value for the taxpayer,
boosts growth and delivers new homes.

5. Why alienation is the best way to get land?

a. Gain indefeasibility of title

b. Can get compensation if the land is acquired by State Authority for public purpose
c. Longer period other than another mode of disposal
d. The proprietor feels secure to develop and invest in the land
e. The proprietor can deal with the land

6. What are the purposes and effects of qualified title?

-A qualified title will be issued before a Final Title. The area of the land is not final and merely
provisional. Thus, it is incapable of being subdivided, partitioned, or amalgamated. However, under
the NLC, a proprietor of a qualified title has the power to lease, charge or transfer the land.

-The qualified title confers on the proprietor the same rights in respect as those conferred by the
Final Title save that the land shall not be capable of being sub-divided or partitioned, or included in
any amalgamation, nor shall any building thereon be capable of subdivision, unless otherwise
provided.