UNIVERSITY OF IRINGA

LAW OF CONVEYANCE

CLASS ACTIVITY III

Question one (For Group 1-15)

Nadhifu Mtanashati is the owner of a property at Kihesa kwa Kindimba. The tittle to the
property is CT 11156, Plot 99, Block A, located at Kihesa kwa Kindimba, issued on 1st
August 2000. Nadhifu Mtanashati feels that this property bears all the qualities of a right of
occupancy as per section 22 of the Land Act Cap. 113. He is mindful of securing a mortgage
loan of Tanzanian shillings One Hundred and Fifty Million only [ Tsh. 150,000,000/=] from
Maokoto Bank Ltd.
Mr. Nadhifu Mtanashati wants your advice on:
a) Essential steps for securing the loan.
b) A draft mortgage agreement that shows the possible terms of the loan.

Question Two (For Group 15-29)

Mzee Mkarimu is a retired Army Officer, who has a 75 Acre farm in Nduli area, near Iringa
Municipality. The land is held under an agricultural right of occupancy for 99 years from 1st
October 1993. The farm is cultivated with permanent and seasonal crops, and he also keeps
therein a herd of 200 dairy cattle and 100 Goats. He has a large farm house in the property
where he leaves with his family of two married sons, his wife, and several grandchildren.
After consultation with his sons, he has decided to turn half the property into an exclusive
diary farm, and expand onto adjoining land where 100 Acres are open for sale as ranch land.
The ranch is up for sale for Tshs. 250,000,000/= which Mzee Mkarimu wants to raise through
mortgaging his land conservatively valued at Ts. 1 billion.
Mzee Mkarimu comes to you for advice on what steps he must undertake to raise a bank loan
through the mortgage of his land and what documentation must be generated for the
perfection of the security. And a drafted sample of the document.
Kindly Advise and Draft a sample document.