Unit Title's Administration
Unit Title's Administration
Unit Title's Administration
For
The Ministry of Lands Housing and Human Settlement (MLHHSD)
In Collaboration with
National Housing Corporation (NHC)
DAR ES SALAAM
2012
1
Table of Contents
LIST OF ABBREVIATIONS............................................................................................................................................................................ 5
PART ONE: INTRODUCTION; THE UNIT TITLES ACT........................................................................................................................6
1.0 Introduction (section 5) 6
1.1 Handbook Overview 6
1.2 Essentials in a Unit Property 6
1.3 Development of Unit Property (Ss. 3, 4 and7) of UTA 7
1.3.1 Unit Plan....................................................................................................................................................................................... 7
1.3.2 Unit................................................................................................................................................................................................. 7
1.3.3 Unit Property................................................................................................................................................................................8
1.3 4 Unit Title Property......................................................................................................................................................................8
1.3 5 Unit Title Documents................................................................................................................................................................8
1.3 6 Common Properties...................................................................................................................................................................8
1.3.7 Unit Owners Association..........................................................................................................................................................8
PART TWO: DEVELOPMENT OF UNIT TITLE PROPERTY (Ss 4, 7, 8, 14 and 15) OF UTA....................................................9
2.0 Developer 9
2.1 Steps in developing a unit title property 9
2.1.1 Checklist of tasks....................................................................................................................................................................... 9
2.1.2 Application for Certificates..............................................................................................................................................................11
2.2 Application for Subdivision/Amalgamation (S 12(1)) 11
2.2.1 Checklist of Documents.........................................................................................................................................................11
2.3 Application for Change of Use of a Unit (S 13(1)) of UTA 11
2.3.1 Checklist of Documents.........................................................................................................................................................11
2.4 Application for Disposition (Ss. 28, 29, 30) of UTA 11
2.4.1 Checklist of Documents.........................................................................................................................................................12
2.5 Disposition Documents 12
2.5 Unit Property Development Stages 14
PART THREE: REGISTRATION OF UNIT TITLES (Ss 8, 14 and15)..............................................................................................15
3.0 Registrar of Titles 15
3.1 Register of Units 15
3.2 Mandate of the Registrar of Titles 15
3.3 Registration by the Registrar of Titles 15
A. Registration of Units 15
B. Applications for Registration of Unit Plans from Applicants (Reg 4) 16
B.1 Checklist of Documents requirements for registration of a Unit plan.......................................................................16
B.2 Checklist of Tasks.......................................................................................................................................................................16
C. Application for Registration of a Unit (Reg 5) 17
C.1 Checklist of Documents............................................................................................................................................................17
C.2 Checklist of Tasks.......................................................................................................................................................................17
D. Application for Registration of Unit Owners’ Association (S 35(1), Reg 13 and UTF 11) 18
D.1 Checklist of Documents............................................................................................................................................................18
D.2 Checklist of Tasks....................................................................................................................................................................... 18
E. Application for Change of Use (S. 13 and Reg.8 (1)) 18
2
E.1 Checklist of Documents.............................................................................................................................................................19
E.2 Checklist of Tasks....................................................................................................................................................................... 19
F. Application for Subdivision / Amalgamation (S. 12, Reg. 7) 19
F.1 Checklist of Documents.............................................................................................................................................................20
F.2 Checklist of Tasks........................................................................................................................................................................20
G. Registration of Transfers of Common Property 20
G.1 Checklist of Documents............................................................................................................................................................20
G.2 Checklist of Tasks....................................................................................................................................................................... 20
3.4 Termination of Unit Status (Ss.75, 76, Reg.17) 21
3.4.1 Checklist of Documents.........................................................................................................................................................21
3.4.2 Checklist of Tasks....................................................................................................................................................................21
PART FOUR: INTERMEDIARIES...............................................................................................................................................................22
4.0 Intermediary Roles 22
4.1 Financier 22
4.2 Land Surveyors 22
4.3 Lawyers / Conveyancers 22
4.4 Estate Managers 23
4.5 Architects 23
4.6 Disposition (S.28 (1)) 23
4.6.1 Sale by Developer.....................................................................................................................................................................23
4.6.2 Sale by a co-owner...................................................................................................................................................................24
4.6.3 Leasing of the Unit...................................................................................................................................................................24
4.6.4 Mortgage of a Unit....................................................................................................................................................................25
4.6.5 Composite Flow Chart............................................................................................................................................................26
PART FIVE: UNIT BUYER (OWNER)........................................................................................................................................................27
5.0 Buyer’s Rights and Obligations 27
A. Obligations and Liabilities...........................................................................................................................................................28
B. Liability of Co-owners...................................................................................................................................................................30
5.1 Buyer’s Checklist 30
5.2 Flow Chart on Unit Buyer’s Tasks 31
5.3 Sale of Unit by the Unit Owner 32
PART SIX: MANAGEMENT OF UNIT TITLE PROPERTY...................................................................................................................33
6.0 Overview 33
6.1 Owners’ Association 33
6.1.1 Functions of the Association................................................................................................................................................34
6.1.2 Representation of the members of the Association.......................................................................................................36
6.2 Constitution of the Association 36
6.3 Management Agreement 36
6.4 By-laws 37
ANNEXES.......................................................................................................................................................................................................... 42
ANNEX 1 TASKS FOR THE DEVELOPER 42
ANNEX 2: INTERMEDIARIES/FINANCIERS 42
ANNEX 3: TASKS FOR THE REGISTRAR 43
ANNEX 4: FEE STRUCTURE 43
ANNEX 5: PROCESS MODEL FORMS 45
3
4
LIST OF ABBREVIATIONS
Ads Advertisements
AF Association Form
AGM Annual General Meeting
Cap Chapter
GN Government Notice
LGA Local Government Authority
No Number
Reg Regulation
RoT Registrar of Titles
S Section
Ss Sections
TV Television
UTA Unit Titles Act
UTR Unit Titles Regulations
UTF Unit Titles Form
5
PART ONE: INTRODUCTION; THE UNIT TITLES ACT
Chapter two looks at the required processes for the development of Unit Title property. This part is important for
developers and all those who would like to know about the needed stages for the development of unit properties and
the required documentation. The part also provides the possible scenarios regarding changes that can be made on a
unit property and the requirements of disposition.
Chapter three deals with powers of the Registrar of Titles in relation to Unit Title Properties. It outlines the required
checklist for each application, required actions and the deliverables in case the application is successful. Chapter four
is on the possible intermediaries in Unit Title Development and their roles. This part is useful as it provide useful
information on the possible practitioners that can provide needed services to help the developer or buyer in complying
with the requirements of the law.
Chapter five provides a checklist of processes before buying the unit property. It also outlines the conditions unique to
unit title properties that must be complied-with by unit buyers once the deal is sealed. The corresponding rights of
unit owners or unit buyers are also stated. In addition, it provides the necessary documentation that should be
handled to the buyer by the developer. So this chapter is a must read chapter for unit buyers.
The last chapter deals with issues of unit property management. Although this part is crucial for all players, but
developers and unit buyers need to read it carefully as it provides for the structures of management, mandates and
obligations before and after the transfer of title to unit buyers. The Handbook does also contain a list of annexes that
include checklist of processes, documents, fee structure and the prescribed forms.
6
1.3 Development of Unit Property (Ss. 3, 4 and7) of UTA
Where the developer is planning to develop the property in phases, he may submit a phased unit plan to the registrar
indicating that the property shall be developed in successive phases. A phased unit plan must indicate the time table
for the development of the various phases. In all cases the developer for a unit property development must procure
planning and building permit and consent from appropriate Local Government Authority as provided under the Urban
Planning Act 2007, Land Act 1999 and the Local Government (Urban Authorities) (Development Control) Regulations
2008, GN 242 of 2004.
1.3.2 Unit
For the purposes of unit title development, a unit means a portion of property which is owned by a specific owner or
co-owned for exclusive use by owners. What an individual owns under the unit titles scheme is a unit. The Unit is
identified by boundaries of the neighbouring units. The boundaries of a unit are described by reference to a floor, wall
or ceiling; or where a wall located within a unit is a load bearing wall, the only portion of that floor, wall or ceiling, as
the case may be, that forms part of the unit. In case of clustered unit properties their boundaries may be demarcated
on the ground by a land surveyor. The boundary in high rise unit properties include any lath and plaster, panelling,
gypsum concrete panels, flooring material or coverings or any other material that is attached, laid, glued or applied to
the floor, wall or ceiling. Doors and windows of a unit forms part of the unit unless provided otherwise in the plan.
Where a building contains premises that are rented to a tenant who is not a party to a sale agreement; and not
included in a Unit plan, the owner of those premises or a person acting on his behalf must not sell the premises until
the Unit plan which includes the premises is registered in accordance with the UTA. Thus a unit title means a portion
of property which is owned by a specific owner or owned collectively with other owners as a distinctive property
evidenced by certificate of unit title.
In unit title schemes, unit property or property development means the land that has been described in the unit plan
together with all structures, improvements, easements, rights, and appurtenances located on or forming part of such
property.
7
1.3.3 Unit Property
Unit property under the UTA refers to units of real property which are owned by co-owners for their exclusive use with
certain portions of the same property held in co-ownership for common use. The unit property include a single
buildings or several buildings comprising of sections of unified site together with the land on which they are located
and all real rights existing in their favour.
1) the land, yards, verandas or balconies, parks and gardens, access ways, stairways and elevators, passageways
and halls, common service areas, parking and storage areas, basements, foundations and main walls of
properties;
2) common equipment and apparatus, such as central heating and air-conditioning systems and the piping and
wiring; and
3) partitions or walls that are not section of the foundations and main walls of a building but which separate a
unit from a common area or from another unit.
The common areas may be divided into fractions called fractional shares belonging to one or several co-owners each
owning undivided right of ownership in the area equal to the relative size of his fractional share. A fractional share can
be obtained by taking the physical area of the co-owner’s unit divided by the total physical area of all units of the
property and the sum of all fractional shares shall equal one after rounding for minor discrepancies. Unit factor means
a proportional share of a common area which depends on the number of units owned by the individual in the unit
property. In any case, the more the number of units and hence the physical area the owner has, the more the
proportional share he has in the common area.
8
PART TWO: DEVELOPMENT OF UNIT TITLE PROPERTY (Ss 4, 7, 8, 14 and 15) OF UTA
2.0 Developer
Development of unit title property is undertaken by a recognized person called a developer. The developer must obtain
valid original certificate of title to the land; he must consult experts such as estates agents, land surveyors, valuers,
lawyers and planners and secure architectural works and necessary building permit/consents from planning
authorities and is required to pay for the building permit secured.
According to the UTA, the developer must ensure compliance with the legal procedures. Once the required consents
have been obtained the developer may make an application to the Registrar of Titles by submitting the Units Plan for
registration and approval. The application has to be accompanied by statutory subscribed fees. Where necessary the
developer may consult other intermediaries such as financiers to secure loans.
Where the unit plan includes residential units, in addition to the above requirements, the plan must indicate a
demarcation of the boundaries of the areas that are to be leased under section 9(3) of UTA. As to how one can define
the boundary of a unit section 16(1) and (2) of UTA defines as follows:
A boundary of a unit is described by reference to a floor, wall or ceiling or where a wall located within a unit is a load
bearing wall, the only portion of that floor, wall or ceiling, as the case may be, that forms part of the unit, including
any lath and plaster, panelling, gypsum concrete panels, flooring material or coverings or any other material or
coverings or any other material that is attached, laid, glued or applied to the floor, wall or ceiling, as the case may be.
In addition to the above, every application for registration of a Unit plan must be accompanied by the following
certificates: - (a) a certificate of a registered Land Surveyor to the effect that the structure shown on the plan is within
the external surface boundaries of the common property which is the subject of the plan, and if there are projections
beyond the external boundaries, that an appropriate easement has been granted as an appurtenance of the common
property; and
(b) a certificate of a local government authority to the effect that the proposed division of the structure as shown on
the plan has been approved by the local authority in accordance with any enactment regulating land use and building
construction. A unit plan for a building or structure that is to be brought under the operations of the UTA must also
be accompanied by a certificate from a registered architect indicating that the plan correlate with the existing structure
before it is registered. The certificates outlined above must follow the prescribed format under schedule 10 to the UTR.
9
3. He must obtain approval of a Registered Land Surveyor. The approval must be endorsed in UTF No. 10A of the
UTR;
4. He may need to consult financiers or credit institutions. In doing so he may need to engage real estate
appraisers to provide the value of the property to be developed and its viability,
a. If the project is viable and the financier is willing to provided credit he must obtain mortgage contract.
The contract can be prepared between an agent (lawyer) of the developer and the legal unit of the
financier.
b. Other necessary intermediaries at this stage may be engaged as the need may arise.
5. He must obtain approval from the Local Government Authority;
a. The approval must be endorsed in UTF No 10B of the UTR.
b. He must also make sure that he obtains the necessary building permits and approvals from the Local
Government Authority.
c. He must comply with payment of the required statutory fees.
d. At this stage there might also be a need to engage assistance of other intermediaries like lawyers and
estate agents etc.
6. He must obtain approval of Registered Architect endorsed on UTF No. 10C of the UTR;
7. He may then commence public advertisement of the intended project through different media,;
8. He must submit an application for registration of a unit plan. The application is made on UTF No. 3 of the UTR
and must be accompanied by 4 copies of complete set of unit title plan. The unit title plan must contain:
(i) Site plan, adequately identifying the land earmarked for development,
(ii) Indication of number of units to be built so as to form a unit property,
(iii) Schedule indicating unit factors,
(iv Statement of particulars to identify title to common property,
(v) Duly filled certificates from Registered Land Surveyor, Local Government Authority, Registered Architect,
(vi Building permit,
(vii) receipts acknowledging payment of required fees,
(viii) The application must be made in four (4) copies,
(ix) Applicant’s photograph.
9. He must submit an acceptable title deed (as advised by the Registrar of Titles) to prove ownership to the land;
10. He must indicate in his application if the development of the property is turnkey or phased. Where the
development is phased, he must indicate timetable for the development of the various phases;
11. Before the completion of the engineering works, the developer must obtain a Certificate of Occupancy as per
the Local Government (Urban Authorities) (Development Control) Regulations GN 242/2008.
12. The developer will also need to make application for registration of Unit Title Association under UTF No. 11 of
the UTR. The application for registration of Unit Titles Association must be accompanied by:
(a) Association Constitution, (15th schedule) of the UTR,
(b) Association By-Laws (14th schedule) of the UTR,
(c) Management Agreement (11th schedule) of the UTR,
(d) Payment of required fees (20th schedule) of the UTR.
13. After the above have been lodged with the Registrar of Titles and duly registered, the developer may engage
engineers and contractors to start construction of the property and pre-completion sale of units; and
14. In relation to the sale of units, the developer may facilitate application for registration of units to be made on
UTF No. 4 of the UTR.
10
2.1.2 Application for Certificates
Application for the Certificates from the LGA, Registered Land Surveyor and the Registered Architect will require formal
letter of application as may be prescribed by the Registrar of Titles, accompanied by the following documents:-
(a) Valid Title Deed,
(b) Site Map,
(c) Building Permit, and
(d) Proposed Unit Plan indicating among other things the total area to be covered by the Unit
Plan, area for each unit and the common areas such as recreational grounds, assembly points, parking, and gardens
as required by the UTA.
11
2.4.1 Checklist of Documents
Before the developer sells a unit he must deliver to the purchaser copies of the following documents:
(a) Sale agreement in respect of the unit;
(b) Existing or proposed by laws of the Association;
(c) Existing or proposed recreational agreement;
(d) Existing or proposed management in respect of the unit;
(e) Lease of the common property where the unit is located (if any);
(f) A certificate of title for the unit or proposed unit;
(g) Any mortgage / charge that affects the unit;
(h) A copy of the Unit plan; and
(i) Written notice (in case the property under which the unit has been constructed has been mortgaged)
indicating:
i. The maximum principal amount under the mortgage;
ii. The maximum monthly payment, (if any);
iii. The duration of payment;
iv. The grace period, (if any);
v. Pre-payment terms (if any); and
vi. The interest rate or the formula for determining interest rate.
(e) Deed of Application and Notification of a disposition (Land Form Nos. 29 and 30) (in triplicate);
(f) Sale Agreement (in triplicate);
(g) Proof of citizenship i.e., certified copies of passport;
(h) Original Valuation report and valuation approval receipt;
(i) Capital Gains Tax Clearance Certificate from the Vendor (subject to further confirmation from tax authorities,
Capital Gains Tax is usually advance tax of 10% of the purchase price or market value, whichever is higher);
(j) Current land rent receipts;
(k) Stamp duty and registration fees;
(l) A certified copy of the floor plan in respective of the Unit
(m) Certificate of approval from Commissioner for Land; and
(n) Right of use of fractional share of a common area as per Section 28(2) of UTA.
Note that in practice registration of transfer process can be undertaken under either of the following options:
12
1. By first making an application to the Registrar of Title Deeds for the preparation of Certificates of Units in
respect of a particular block of apartments in the name of NHC (STAGE ONE). Thereafter, once title deeds have
been prepared, lodge with the Commissioner for Lands (the “Commissioner”) transfer documents (together with
Unit Title registered in favour of NHC) in respect of a particular Unit for Commissioner’s approval/consent for
registration of transfer in favour of the purchaser (STAGE TWO). The final stage of this process entails the
purchaser’s name getting endorsed against the title deed and the registration of transfer registered against the
Registrar of Titles Register (STAGE THREE); or
2. By commencing the registration of transfer process (the STAGE TWO process mentioned above) without the
Certificate of Unit and once consent to transfer is granted by the Commissioner for Lands, make an application
to the Registrar of Titles to have a the registration registered and a Certificate of Unit issued in the name of the
buyer (i.e. STAGE ONE and STAGE THREE running simultaneously).
You will note from above that option 2 is easier and less time consuming.
13
2.5 Unit Property Development Stages
A.
14
PART THREE: REGISTRATION OF UNIT TITLES (Ss 8, 14 and15)
A. Registration of Units
Where an owner of a unit /developer applies to the Registrar for the registration of the unit, the application must be
made under UTF No. 4, of the 4th Schedule to the UTR. Any interest affecting the common properties entered on the
part of the closed register has to be indicated on the parts of the opened register and on the certificates of title to the
extent of the unit factor. Where any interest affecting a unit comprised in a registered unit plan has not been endorsed
on a separate part of the register will have to be endorsed on a separate part of the opened Register of the Unit and on
the certificate of title in respect of that Unit. Also the registrar upon opening a separate part of the register for a unit,
he must record in that part, the unit factor. The same must be recorded on the certificate of title issued in respect of
the form under UTF No. 5 of the 5 th schedule to the UTR. Successful application for registration of a unit entitles the
applicant to get a certificate of unit title for his unit property. The legal effect of the registration of a unit is to enable
the owner whose unit has been registered to sell, transfer, lease, charge or deal with his unit in similar manner as a
person holding title under the LRA.
15
B. Applications for Registration of Unit Plans from Applicants (Reg 4)
The UTA allows developers to present their unit plans to the Registrar of Titles for registration. Such application for the
registration of a unit plan must be made to the Registrar on Form No. 3 (UTF No. 3) set out in the 3 rd schedule to the
UTR. A unit presented to the Registrar of Titles for purposes of registration as a unit plan, a unit plan of a subdivision
or amalgamation or any other type of plan to be registered must be (a) drawn in ink, material, size and be in nature, (b)
prepared in sheets bearing appropriate words and formats, (c) consist of any other information or signs as may be
directed by the Registrar of Titles or any other relevant authority. So what the developer presents to the registrar for
registration is the unit plan which must indicate the number of units into which the building is divided in four (4)
copies. Where the unit plan is for a property to be developed later, then the developer when depositing the unit plan;
may also indicate whether the unit plan shall be developed at once or in successive phases. In such a case he must
also indicate a time-table for the development of the various phases. In all cases the developer or proprietor for a unit
development must procure planning and building permit /consent from appropriate local government authority as
provided under the Urban Planning Act, 2007. The Developer must make ensure that the unit plan complies with the
requirements of the law provided under sections 14 and 15 of the UTA.
16
C. Application for Registration of a Unit (Reg 5)
Owners of Unit(s) are required to register their units with the Registrar of Titles. The application for registration of a
unit must be made on Form No. 4 in the 4 th Schedule to the UTR and the Registrar of Titles may impose any conditions
to be complied with by applicants. Where the Registrar of Titles is satisfied that an applicant has fulfilled all
requirements provided for under the UTA and UTR he shall, after the payment of prescribed statutory fees, register the
unit. After registration of a unit, the registrar has to issue a certificate of unit title to that effect, on Form No. 5 set out
in the 5th Schedule to the UTR. Where the Registrar of Titles refuses to register a unit plan or a unit, he shall, inform
the applicant in writing the refusal and reasons thereof. In case the applicant has made correction or fulfilled any
requirement as directed by the Registrar of Titles, the unit shall be registered as a unit under a register of units.
Generally, the procedures relating to registration techniques, procedures and practices are the same as those under
the LRA unless specifically stated otherwise. Hence a certificate of title issued in respect of a unit comprised in a Unit
plan registered under the UTA will be deemed to have been issued under the LRA.
17
D. Application for Registration of Unit Owners’ Association (S 35(1), Reg 13 and UTF 11)
The Registrar of Titles has power to register an associations under the UTA as long as it has fulfilled all requirements
including paying the prescribed fees. So every Association has to make an application for such registration vide Form
No. 11 on the 12th Schedule. Under Regulation 13(1) of UTR the registrar is required to keep and maintain a register of
Associations and records of their particulars.
In case the Registrar of Titles refuses to register an association he must inform the applicant in writing the reasons for
such refusal. Once he does the correction and meet any other requirement as directed by the Registrar; the Registrar
shall register it. In addition to the stipulated requirements the Registrar may impose any conditions to be complied by
every applicant. Where an Association has been registered the Registrar will have to issue a certificate of registration in
Form No. 12 set out in the 13th Schedule to the UTR. The certificate once issued can be cancelled if the Registrar is
satisfied that the Association has contravened any provisions of the UTA, by-laws or the UTR or has lost the capacity
to be an association. The by-laws of the Association shall follow the format set out in the 14 th schedule to the UTR.
19
are fulfilled and the statutory prescribed fees have been paid pay, the Registrar of Titles shall, register the unit or the
unit plan.
20
3.4 Termination of Unit Status (Ss.75, 76, Reg.17)
1. Application for termination of unit status by the Unit Owners’ Association is made on form AF 22 (19 th
schedule) of UTR;
3. The application must be accompanied by: (a) A certified copy of the unanimous resolution of the owners or (b)
A certified copy of the order made by the court in respect of termination of Unit Status; and
4. The Registrar of Titles must cause notice of termination of unit status to be furnished to any mortgagees and
other interested parties.
21
PART FOUR: INTERMEDIARIES
Particular tasks and code of ethics for these actors are provided in their respective legal regimes and client charters. A
well developed unit titles market may also create a code of practice for these intermediaries. Below are some of the
specific services and tasks that intermediaries may provide in a unit title development scheme.
4.1 Financier
The financier is supposed to:
(a) Received and evaluated project write-up;
(b) Provide details of mortgage financing terms and conditions to the loan applicant;
(c) Ensure securitization/hypothecation process;
(d) Ensure drafting and execution of mortgage agreement;
(e) Ensure registration of mortgage documents with the Registrar of Titles;
(f) Release of funds as agreed;
(g) Follow-up mortgage repayments;
(h) Liaise with developer and Registrar of Titles on any change of terms and mortgage compliance;
(i) Occasionally liaise with the Unit Owners’ Association on the status of any mortgaged unit; and
(j) Release or discharge mortgaged units upon payment of a loan.
22
(f) Liaise with mortgagee for registration of the mortgage documents;
(g) Render legal advice during the development of the unit title project;
(h) Assist in drafting of construction contracts for sale or lease of units any other contracts pertaining to the
development;
(i) Render legal advice to unit buyers;
(j) Facilitate mortgage discharges and transfer of units to unit buyers; and
(k) Provide general legal services on other third party rights and interests.
4.5 Architects
The architect may:
(a) Advise the developer against proceeding with any project whose practicability may be questionable due to
financial, legal or exigent conditions;
(b) Help the developer to know the conditional character of estimates other than estimates submitted in the form
of actual proposals by contractors;
(c) Help the developer to assess the needs and stipulation of the developer and the effects of the project upon the
life and well-being of the public and the community as a whole; and
(d) Assist the developer to meet the aesthetic and functional requirements of the project according to the
developers’ appropriation.
(b) maintenance, repair or replacement of any property which is subject to a lease granted to the owner of the
unit under the UTA which is damaged, destroyed, lost or removed as the case may be by the person occupying
it.
24
Seven (7) days after the tenant cease to rent the unit, the owner must give the Association notice in writing stating that
his unit is no longer rented. In such a case the Association shall within twenty (20) days after receiving a written notice
regarding such expiration of the lease, return the deposit to the owner. In case it had applied the deposit to one of the
intended purposes stated above, the Association shall provide to the owner a statement of account for such
expenditure and the remaining balance. In case it intends to use it for the stated purposes deliver an estimated
statement of account indicating the amount it will use and within sixty (60) days provide a statement of account
showing the amount used and any remaining balance.
(b) to give written notice of any delinquency in the payment of common expense by the co-owner of a unit on
which the creditor holds a mortgage, or any intention of the Association to enforce its claim to collect common
expenses against a unit;
(c) not to amend any material provision of the by law without the consent of the mortgagees holding mortgages on
the units;
(d) not to take specified actions concerning the property without the approval of the mortgagees holding
mortgages on the units, including and without limitation:-
(i) Conveying or encumbering any of the common areas;
(ii) Termination of the co-ownership; or
(iii) Pledge or assignment of the future income or receivables of the Association;
(e) upon the request of any mortgagee, to provide a copy of the current financial statements of the Association; or
(f) such other matters on which the Association and mortgage creditors may agree and which do not contradict
the UTA.
(1) Agreements for the benefit of mortgagees may be included in the by-laws, in which case, they shall constitute
contractual obligations of the Association toward any present or future mortgagee holding a mortgage on any
unit.
(2) Upon acquiring ownership of a unit through enforcement of its rights under a mortgage, a mortgagee shall
succeed to all rights and obligations of a co-owner.
25
4.6.5 Composite Flow Chart
26
PART FIVE: UNIT BUYER (OWNER)
i. He may use his unit and the common areas for his own needs as well as for the needs of
his family and household;
ii. He may transfer his unit to any other person by sale, lease, gift, bequest, devise, pledge or
mortgage or any other manner permitted by law;
iii. He may participate in the management of the Association in accordance with the
provisions of the by-laws, and in that regard he may elect or be elected to the
Association's Governing Committees;
vi He may lease his unit subject to the Association’s consent. Before doing so he must give
notice to the association within seven (7) days.
vii He can mortgage the Unit under the provisions of the Land Act.
In case of a mortgage, the Association may enter into agreement with mortgagee to
provide information on various issues regarding any state of facts that affects / likely to
adversely affect physical or financial position of the mortgage. The agreement may
provide, amongst other things provisions where the Association agrees:-
a) To notify the mortgagee of any breach by a co-owner of a unit under mortgage to
pay common expenses or intention of the Association to enforce such claim,
27
b) Not to amend any material provision in the by-law without the consent of the
mortgagees holding mortgages in the units;
d) Not to take specified actions concerning without the approval of the mortgagees
holding mortgages on the units including and without limitation:-
viii The agreement with the mortgagees may be included in the by-laws in which case they
shall constitute contractual obligations of the Association towards any present or
future mortgagee holding a mortgage on any unit; and
ix. Where a co-owner has defaulted the mortgagee as a remedy may acquire right of
ownership of the mortgagor’s unit as a remedy. In such a case the mortgagee shall
succeed to all rights and obligations of a co-owner.
28
(iii) Fire arms
(a) A co-owner cannot use, or permit any occupant, agent, tenant, invitee, guest, or member of
the co-owner’s family to use firearms, air rifles, guns, bows and arrows, illegal fireworks or
other dangerous weapons or devices anywhere on or about the property.
(iv) Drive ways
(a) Drive ways must remain clear at all times to facilitate access among all co-owners. No
stopping, standing or parking in the drive ways and general parking at any time.
(b) The drive ways may not be used for any purpose other than access to the individual garage
units or parking lots without the prior written permission of the Association.
(c) No commercial vehicles, heavy duty tracks or trailers should be parked or stored within the
property without prior written approval of the Association.
(d) Any maintenance should be performed within a garage or residence where such work shall be
isolated from public view.
(v) Use of common areas
(a) The common areas are for the quiet use of co-owners, family members, occupants, guests and
invitees. In case of any planned gathering in the common areas, the host co-owner must first
receive written permission from the association.
(b) There may also be quite time policy in the common areas.
(c) The Association may impose reasonable user fees for use of the common areas.
(vi) Fire Safety
(a) Each co-owner is required to abide by the general fire safety Regulations and precautions
issued by local authorities.
(vii) Waste Collection and Disposal
(a) A co-owner or occupier of a unit in a multi-storey subdivided building with chutes for the
disposal of waste is required to ensure that before any waste is thrown into the chutes it is
securely; wrapped in plastic bags or other similar materials.
(b) Occupiers are not allowed to dispose off any large objects into the chutes which may obstruct
the free fall of waste in the chutes.
(c) A co-owner or occupier of a unit not provided with any chute for the disposal of waste has to
maintain within his unit, or on an authorized part of the common property a garbage bin for
the disposal of waste.
(d) Occupiers may not place any waste in the garbage bin of another co-owner or occupier of any
other unit without his permission.
(e) An occupier must promptly remove any waste which may have spilled from the garbage bin.
(f) A co-owner or occupier is not allowed to deposit or throw upon the common property any
rubbish, dirt, dust or other material likely to interfere with the peaceful enjoyment of the co-
owner or occupier of another unit or of any person lawfully using the common property.
(viii) Signs and Billboards
(a) Signs, billboards or other advertising devices that are visible from the exterior of the Unit or
from the common property should not be displayed on any Unit without written permission
from the Association.
(b) As for advertising the units, a professionally made unlit sign, or a sign of substantially the
same quality and appearance, not larger than one square meter in size, maybe used for the
purpose of advertising a unit for sale or letting.
29
(ix) Physical alterations of units & Boundaries
(a) A co-owner may make improvements or alterations to his unit which do not damage or impair the
common areas or any other unit; or change the appearance of the common areas, or the exterior
appearance of a unit such as fencing wall, doors, windows, external wall, swimming pool, sheds
or any other portion of the property, without permission of the Association.
(b) He may also remove, alter or create apertures in any intervening partition if those acts do not
impair the structural integrity or mechanical systems of the property or another unit or lessen the
support of any portion of the property; and relocate the boundaries between adjoining units,
combine two or more units or subdivide an existing unit into two or more portions by amendment
to the declaration upon approve of the Association and the co-owners of any affected units.
(c) Co-owners may apply for relocation of boundaries, combination or subdivision of units at their
expense. The fractional shares will be reallocated among the co-owners and the Association will
prepare and register the amendments to show the subdivided unit or altered boundaries, units,
their dimensions, identifying numbers, and the fractional shares of such units.
B. Liability of Co-owners
Where in a unit owned by two or more people as joint tenants or tenants in common; there is an
amount that is to be recovered by the Association from the unit owners’, the liability is separate and
joint for the payment of the amount. Therefore each unit owner shall be liable for part of the amount
proportional to the value of the owner’s interest in the unit. If any co-owner has paid part of the
amount that is more than the owner’s proportional liability he may recover the excess from the other
owners.
30
iii. Obtain proposed by-laws;
iv. Obtain proposed recreational agreements;
v. Get copy of lease agreement of common property (if any);
vi. Get a copy of the Unit Plan;
vii. Get a copy any charge/mortgage;
viii. Rent Clearance Certificate (if any);
(g) Obtain property tax clearance certificate;
(h) Obtain a Capital Gains Tax Certificate from the vendor;
(i) Execute sale agreement;
(j) Process approval to disposition with the Commissioner for Lands;
(k) Pay stamp duty and registration fees as prescribed by law; and
(l) Follow up with the Registrar of Titles to ensure execution of the transfer.
Vendor’s Disclosure
Ads, TV, newspaper,
Internet etc
On site verification
& Evaluation
Obtain necessary
documents
Financing
Excuse Sale
Arrangements Unit Title
Agreement &
Developer Consent
31
5.3 Sale of Unit by the Unit Owner
Where the unit owner decides to sell his unit he must make available to the buyer the following
documents before completion of the sale. (S. 30 (1) of the UTA)
(a) Copies of the by-laws;
(b) Association’s current budget and financial statement;
(c) A certificate containing a statement of the amount of assessments for common expenses for
the unit;
(d) Any unpaid common expense due payable for the unit; and
(e) Any other fee or charges payable by the owner of the unit.
32
PART SIX: MANAGEMENT OF UNIT TITLE PROPERTY
6.0 Overview
The Unit title property being a unique kind of property model calls for a special management
structure. The structure involves formation of an Association that has the power to run the day to day
management of the property. The functions and powers of the Association have been further outlined
below.
The management of unit title property involves the owners’ Association and the managing agent. In
order to ensure smooth operation of the Association and its management, the association must have
The developer is required to engineer the formation of the Association. He is also required to convene
the first meeting of the Association upon which the management committee will be elected. The initial
meeting of the co-owners has to be called by the developer after five (5) of units having been sold. The
initial meeting has to be called ninety (90) days after fifty percent (50%) of the units or one hundred
and eighty (180) days after first conveyance of title in order to elect a management committee. The
developer can also call meetings other than initial meeting to share information or for specific
purposes. After the initial meeting, the Association can call AGM and Special Meetings. The notice of
meetings should not be later than twenty one (21) days. But where the owners are less than five (5)
the developer is supposed to advise them to simply adopt by-laws and register them with the Registrar
of Titles.
Once their number reaches five (5) then they have to form an Association and register it accordingly.
The developer is also required within six (6) months after the date on which the Unit plan is
registered, provide the Association, free of charge, with the following documents:-
33
(a) all warranties and guarantees on the property of the Association;
(b) structural, electrical, mechanical and architectural working drawings and specification;
(d) plan showing the location of underground utility services and sewer pipes;
(e) all agreements to which the Association is a party, with a local authority, planning authority, the
Government or an agent of the government which relate to the property of the Association;
The Association may however, at any time before it receives any document require the developer to
provide the Association with any of the above documents. The developer will then be required to
provide the document within a period of twenty one (21) days, if the document is in his possession.
(c) to establish and maintain a fund for administrative expenses sufficient for the control,
management and administration of the common property, and for the payment of any
insurance premiums, rent and the discharge of any other obligation of the Association;
(d) to determine from time to time the amounts to be paid for various expenses;
(e) to raise any amount determined for various expenses by levying contributions on the
(f) to insure and keep insured buildings and other improvements on the common property
against fire;
(g) to effect such other insurance as required by the UTA, or as it may consider expedient;
(h) to pay the premiums in respect of any policies of insurance effected by it;
34
(i) to do all things reasonably necessary for the enforcement of any contract of insurance entered
into by it;
(j) to comply with any notice or order duly served on it by any competent local authority,
planning authority or public authority requires to, or work to be performed in respect of the
(k) to submit new plans to the Registrar of Titles in case of alterations to the Unit property;
(l) to do all things reasonably necessary for the enforcement of any lease or license under which
(m) carry out any duties imposed on it by its by-laws. It can also hear complaints from aggrieved
The Association is responsible for enforcement of its by-laws and the control, management and
administration of its movable and immovable property and the common property. The functions of the
Association are subject to any restriction imposed or direction given at a general meeting, be exercised
The duties of Association includes- to keep in a state of good and serviceable repairs and properly
maintain, the movable and immovable property of the Association and the common property; and to
comply with notices or orders from any local authority, planning authority or public utility authority
The Association can have fund or funds for general administration of the Association. The fund will be
used for major repairs and replacements. Annual assessments of levy are to be determined by Annual
budget and must correspond to such budget. All monthly instalments of the annual assessment must
be due and payable in advance on the first day of the month. In case of default on payment of
assessments levied upon the co-owner’s Unit, the Association may impose fines. The Association is
35
required on its own and on behalf of the owners to obtain and maintain an insurance policy covering
the units and common properties as provided under section 81 of the UTA.
Where a unit is owned by two or more persons as joint tenants or co-owners, the owners may by
notice authorize the association in writing to authorize an individual to represent them as their agent.
The notice of unit owners’ representative authorisation is provided under (Form AF 5) of the UTR. In
case a company is a co-owner of the unit, the company’s own representative may be authorized as the
unit owners’ representative. The notice of company’s representative authorisation is provided under
Form AF 8 of the UTR. The notice of authorization has to be given to the Association within fourteen
(14) days after the lodgement for registration of the instrument under which the unit first becomes co-
owned; It also include the full name and physical address of the representative; and has to be signed
Every Association is required to have a Constitution. The Constitution is to regulate the affairs of the
association while the by-laws help to regulate the conduct of the members. The model of the
Constitution is as stipulated in the 15th schedule to the UTR. See the chart below on the contents of a
model constitution.
Every association is required to engage a managing agent for the management of the unit property.
The association is required to elect a management Committee from among its members as per its
Constitution. The Committee has the mandate to engage a managing agent for and on behalf of the
association. In engaging the managing agent the committee must enter into agreement with any
nominated agent. The management agreement outlines the rights and duties of the association and
the management agent. The agreement between the managing agent and the Association shall be
36
entered into through the prescribed format in the 11 th schedule to the UTR. The agent must have
qualification from an approved institution on property and facilities management or any other
category of person with professional qualifications from as the minister may prescribe. The role of the
managing agent is to manage the unit property, manage movable and immovable properties of the
The members of the management committee shall be indemnified by the Association against all
expenses and liabilities, including actual and reasonable attorney fees and amount paid in settlement
6.4 By-laws
Every association must have by-laws to regulate the conduct of the unit owners. The owners may
adopt the model by-laws provided under the UTR or prepare different by-laws which contain a
minimum of the matters stated in the model by-laws. Some of the matters that must be contained are
the name of the association, date when they were adopted as the official by-laws of the
___________________Association and the date of the members’ meeting that adopted them.
The location and address of the unit owners’ Association, Plot No. ______________, Block
No.______________in the area of_____________ in _____________ city / municipality /district, and the
number of units must also be stated. It must provide for membership, voting rights and meetings,
operations and administration of the Association and financial matters. It must provide how
enjoyment, use and upkeep of private and common property will be regulated including disposition
37
GLOSSARY
“Act” means the Unit Titles Act, 2008 – Cap 416 of the Laws of Tanzania, in short the UTA;
“association By-laws” means the By-laws of the Unit Association, organized to administer, operate,
manage, and maintain the Unit Property as made under section 50 of the UTA;
under section 35 of the UTA that shall administer, operate, manage, and maintain the Unit Property
and which shall have all co-owners as members. As a Body Corporate the association may sue or be
“certificate of unit title” means a certificate issued under regulation 6 of the UTR;
“cluster(s)” means group of houses for residential or business purposes closed together;
“common area for restricted use” means a common area used by one or several co-owners;
“common property” means any portion(s) of the unit property other than the individual Unit(s),
including all general and restricted use common property, as described more fully in the Unit plan,
Common areas in the Unit Development (for example; Stairs, hallways, roofs, common
Utility service facilities and extensions (for example; Space for wiring, conduits, sewerage
pipes, etc.)
“co-owner” means the person, firm, Association, corporation, partnership, trust, or other legal entity
or any combination of such entities who or which own a unit in the unit property and the term co-
“developer” means a person engaged in the business of developing a unit property as provided for in
the UTA, and includes its successors and assignees who have signed, delivered, and registered the
38
unit plan and other unit documents; the term includes therefore any person who on the date the
application is made to the Registrar of Titles for registration of a unit plan is registered in the register
“fractional share” means a division of common areas into fractions belonging to one or several co-
owners, who owns undivided right of ownership in the area equal to the relative size of one’s fractional
share;
“general common property” means those common areas that are for the use and enjoyment of all
co-owners of the Unit Property, as described more fully in the Unit plan and specified under Section
“managing agent” means a person referred to under section 49 of the UTA (and Regulation 11(2) of
the UTR) who is engaged by the Association to manage the affairs of the association on a day-to-day
basis, organize general meetings of members, prepare accounts, collect contributions and to generally
manage the property under a management agreement in the form recommended under the 11 th
“member” means a co-owner who is entitled to ownership of an individual Unit and has therefore the
right to become a member of the Association. The term Member, wherever used, is synonymous with
“minister” means the Minister responsible for housing matters under the UTA;
“owner” means an owner of a unit registered under units plan in accordance with the UTA;
“phased unit plan” means a unit plan registered in successive phases under section 5 of the UTA;
“property” means unit property as provided for under the UTA, and generally relates to land and all
“register of units” means a register kept under regulation 3(1) of the UTR;
39
“restricted common property” means those common areas that are reserved for the exclusive use of
a co-owner or any other person so allowed by the Management Committee of a specific unit or units,
“special resolution” means a resolution of an association passed by a majority of the members of the
association;
“transitional control date” means the date on which the Management Committee for the Association
takes office pursuant to an election in which the votes that may be cast by eligible co-owners
unaffiliated with the Developer exceed the votes which may be cast by the Developer;
“unit documents” means the Unit Plan including all exhibits, the Constitution of the Association,
the By-laws of the Association and the rules adopted by the Management Committee of the
Association, and any other document that affects the rights and obligations of a co-owner in the unit
property;
“unit factor” means the unit entitlement of a unit plan and indicated the share of an owner in the
common property, common facilities and other assets of the Association and is the figure which
determines the owner’s contribution to the common expenses of the Association and may be
determined in accordance with the by-laws of the Association using such variables as the size of the
unit, location of the unit and the view which the unit commands. [Refer to 2nd Schedule-Derivation of
Unit factor]
“unit plan” means a plan referred to under section 5(2) of the UTA and includes the document,
together with the exhibits attached to it and all amendments that may be adopted in the future, by
which the unit property is being submitted and registered for unit ownership under the UTA;
“unit property types” means the type of unit property as defined in the UTA which includes high rise
structures or in rows or terraces, or in buildings in a cluster form and the like structures and the user
thereof as more particularly described in the Urban Planning Act 2007 use classes or any other
applicable law;
40
“unit property” or “property” means the land described in the Unit plan, as the same may be
amended, together with all structures, improvements, easements, rights, and appurtenances located
“unit title” shall have a meaning ascribed to it under section 5(1 of the UTA);
“unit” means a portion of property which is owned by a specific owner or co-owned for exclusive use
by owners and is designed and intended for separate ownership and use by an owner or owners, as
“UTA” means the Unit Titles Act, Cap 416 of the Laws;
“UTR” means the Unit Titles Regulations made under Section 83 of the UTA.___________________
41
ANNEXES
Task Required
Acquisition of Title As required under the Land Act, or any other law.
Engaging BANKERS
Securing a Mortgage
UTF# 10B
[S.15(2)]
Units [S.4(3)]
UTF# 3
of UNITS (Reg. 5) Receive Certificate of Unit Title – UTF# 5 under Reg. 5(3).
of Association By-Laws
42
Management Agreement
Development is Turnkey or
Phased [S.4(4)]
Valuers,
Lawyers,
Valuers
ANNEX 2: INTERMEDIARIES/FINANCIERS
Task Required
Write-Up
Securitization/Hypothecation As appropriate
Process
Documents
Task Required
Reg. 9)
Consider Contents of Unit Plan Site plan S.14 (a)- (e) & (i)- (k)
and accompanied docs. per Schedule for unit factors S.14 (1) (f)
43
Building permit
Occupancy/Master Title
Receive Application for Application UTF # 11-
Unit Association
schedule
Modified plan
Modified Plan
fees
Land Act, No 4 1999. S.36-40 and the Land Act will apply ( check list to be
prepared)
44
ANNEX 4: FEE STRUCTURE
TSHs
1. a Upon submission of a unit plan, a unit plan of sub-division or a unit plan 150,000/
B Upon submission of a unit plan, a unit plan of sub-division or a unit plan 250,000/
C Where the unit plan is in phases (phased unit plan), for each extra phase 75,000/=
D A mortgage 15,000/=
E Any transaction referred to in paragraphs (a) to (d) when not in the 15,000/=
prescribed form
of ,000/=
deal with or more than one certificate of title, for each memorial or entry after
45
46
ANNEX 5: PROCESS MODEL FORMS
FIRST SCHEDULE
________
UTF No. 1
REGISTER OF UNIT
No. of Units…………
Edition
Title Number
Owner/Developer..………………………………
Plot Number Block Number Location
F Date of Name of the Addr Consider Signature Date Natu Fur Signature
47
D No. registration registered owner ess of the ation/ of the FD No. of re of ther of the
48
Part C – Change of members of committee and Part D – Change of By-laws
n ratio
49
UTF No. 2
_________
SECOND SCHEDULE
________
_______
A plan presented for registration as unit plan shall be numbered in the following manner:–
Plan No………… of Plot No ………Block …………… Location…………. Title of the plot is identified as
A plan presented as a unit plan of subdivision shall be numbered in the following manner: –
Unit subdivision plan No………………of Plot No…………….. Block/G/6/5, (where 5 is the number of
the unit in the building situated on Plot number 6 in Mbezi Block G).
A plan presented for registration as a unit plan of consolidation shall be numbered in the following
manner :–
Similar numbering shall apply to unit Plans relating to Plots in other Blocks or registration sections.
50
UTF No. 3
_______
THIRD SCHEDULE
_______
(Made under Regulation 4(1))
I/We…………………………………………………………………………………….of
Postal Address…………………………………………………………………………
Email……………………………………………………Phone No………………….
We here by apply for the registration of the unit under the above reference;
Nationality ……………………………………………………………………………
51
52
Addition to UTF No 3 (subject to Registrar’s Approval)
Made Under Regulation 5(2)
Edition opened
Part A – property Section
Registration section Nature of the title
53
UTF No.4
______
FOURTH SCHEDULE
_______
(Made under Regulation 5(3))
_______
_________
FIFTH SCHEDULE
_______
UTF No. 5
is (are) now registered as the unit owner (s) of the title interest referred to, subject to agreements
and other matters contained in the registered title, and to such encumbrances, covenants and
conditions hereinafter set out and as may for the time being subsist and affect the land comprised
in the right of Occupancy, Plot No. …………..Block……………………….location………………Title
No……………………….
54
………………………………………..
Registrar of Titles
SIXTH SCHEDULE
Made under Regulation 7(1)
UTF No. 6
I/We………………………………………………………………………………..of Postal
Address……………………E-mail………………………Telephone…………
Hereby apply for the amalgamation/subdivision of the units registered under the above reference,
dated this…………………………………..day of ……………………………20……………….
55
_______
SEVENTH SCHEDULE
_______
(Made under Regulation 7(2))
UTF No. 7
City/Municipal/District/Township Director
Date:……………………..
56
_________
EIGHTH SCHEDULE
_________
(Made under Regulation 8(1))
_________
UTF No. 8
57
_________
NINETH SCHEDULE
_________
(Made under Regulation 8(2))
_________
UTF No. 9A
This is to certify that, the proposed change of use of the structure submitted by
……………………………………..… (insert name of registered proprietor) as shown on the Unit plan in
respect of the building situated at Plot No………… Block……….. Unit Title No…………..…..Location
……………… has been approved by……………………………..…………….. (on behalf of the association
) in accordance with the Unit Title Act, 2008.
…………………………………………..
Committee Member
…………...…………………………
Chairman of the committee
This is to certify that, the proposed Change of Use of the structure submitted by
No……………………Block………………..Location…………….Unit
…………………………………..
City/Municipal/District/Township Director
_________
TENTH SCHEDULE
_________
Title No……
I certify that:-
58
All the works performed in the field and in the office by my assistant,
……………………………………..….. (Name of the assistant) has been carried out under my personal
direction, and I take full responsibility for all the work as performed.
OR
I, in person, made, and on the……………….day of………….completed the survey represented by
this plan, on which are written the bearings and lengths of the lines surveyed by me, and that the
survey has been executed in accordance with the existing Regulations and with the approved
Town Planning Scheme.
The survey was performed between the dates of……………………and………………… and that this
plan is true and correct, and is prepared in accordance with provisions of the Unit Titles Act,
2008.
The building(s) situated on the plot(s) that is (are) the subject of this plan is (are) wholly within the
external boundaries of the plot (in case of encroachment, this statement will be varied
accordingly); and
The units shown on this plan are the same as those existing at the time of the survey.
This is to certify that the proposed division of the structure submitted by ………………………………
(Insert name of registered proprietor) as shown on the Unit plan in respect of the building situated
at Plot……….Block……….Title No……..has been approved by………….. (Insert name of local
authority) in accordance with the Unit Title Act, 2008.
……………………………….
City/Municipal Director
Date:……………………………….
This is to certify that the unit plan in the respect of the building situated at
Plot No………. Block…………Location………………Unit Title No…………as per attached sheet No. 1
to ………. was prepared and supervised by a Registered Architect.
59
UTF NO 11
_______
TWELVETH SCHEDULE
_________
(Made under Regulation 13(7))
_______
Name…………………………………………
Signature …………………………………….
Qualification …………………………………
60
________
THIRTEENTH SCHEDULE
______
(Made under Regulation 13(8))
_______
UTF NO 12
THE UNITED REPUBLIC OF TANZANIA
THE UNIT TITLES ACT, 2008
(NO. 16 OF 2008)
Registrar of Titles
61