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Is Dividing a 100x100 flat plot by three wise?
Museveni
#11 Posted : Thursday, May 09, 2013 10:41:22 AM
Rank: Member

Joined: 8/16/2012
Posts: 661
tom_boy wrote:
vky wrote:
Go vertical, get your pals to share your building idea then form a holding company and list you and your pals as the directors, transfer the title to the company, build a two storey apartment where you and your pals will have a floor each then register each floor under the sectional properties Act, each of you will get a title then you can kill the company or let it run to manage the common areas
For those in the know, what are the costs of transfering land title from an individual to a company whose director is the individual .... as in it is not a sale. A related question, if I have title to a piece of land and I want to attach someone else to that title to make it joint property, is it possible. I am more interested in knowing the fees payable in these two scenarios and the process if possible.
Of course it is a sale. From my limited knowledge, a company and an individual are two separate legal entities. A percentage of the value of the land is payable for a transfer of title. Please see Marty's thread on The power of financial education:Of Certificates and Ballots Hapo kuna information itasaidia to 'clear the fog' kiasi hopefully.
Live and learn; and don’t forget, nothing ventured, nothing gained.
GalMU
#12 Posted : Thursday, May 09, 2013 11:22:53 AM
Rank: New-farer

Joined: 1/4/2013
Posts: 35
dunkang wrote:
GalMU wrote:
Okey new &small money describes me at (26yrs).I want to start building my home next year. since I have very small money I was thinking dividing a 100x100 plot between three of my friends to easen the burden of purchase would it be possible to build in the resulting plot...30X100? has anyone built in such so i can see practically? Many thanks
It is more than adequate for a 3 bedroom one storey massionette with an SQ and 2 cars parking and an acceptable backyard. If you can download the Greenspan Estate floor plan, the 3 b/r massionettes are built on 25 by 70 ft plots. The only hurdle will be the council approvals if its in a controlled development single dwelling area.
Well well, many thanks Dunkang,the plans look really nice.
GalMU
#13 Posted : Thursday, May 09, 2013 11:26:24 AM
Rank: New-farer

Joined: 1/4/2013
Posts: 35
Rahatupu wrote:
At 26, i would advise you postpone the building idea for a while (since you say money is a challenge). Get some productive ideas to do on the plot e.g green house farming for a while to accumulate funds to build, or alternatively look into doing low cost rentals for a while (mabati kind of thing) for 3-5 years and this way the plot gets to "build itself".
The mabati structures is a nice idea and will think about it harder. I am tired of enriching the landlord and i was hoping to start early and take my good time. Then again making more money has its glitters. Thanks.
tom_boy
#14 Posted : Thursday, May 09, 2013 6:49:11 PM
Rank: Member

Joined: 2/20/2007
Posts: 767
Museveni wrote:
tom_boy wrote:
vky wrote:
Go vertical, get your pals to share your building idea then form a holding company and list you and your pals as the directors, transfer the title to the company, build a two storey apartment where you and your pals will have a floor each then register each floor under the sectional properties Act, each of you will get a title then you can kill the company or let it run to manage the common areas
For those in the know, what are the costs of transfering land title from an individual to a company whose director is the individual .... as in it is not a sale. A related question, if I have title to a piece of land and I want to attach someone else to that title to make it joint property, is it possible. I am more interested in knowing the fees payable in these two scenarios and the process if possible.
Of course it is a sale. From my limited knowledge, a company and an individual are two separate legal entities. A percentage of the value of the land is payable for a transfer of title. Please see Marty's thread on The power of financial education:Of Certificates and Ballots Hapo kuna information itasaidia to 'clear the fog' kiasi hopefully.
@Museveni, thank you for directing me to that thread. However. some fog persists. What is current applicable stamp duty and is there a fee payable to add your spouse's name as a joint owner in property that you already own as an individual.
They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
Museveni
#15 Posted : Friday, May 10, 2013 9:28:16 AM
Rank: Member

Joined: 8/16/2012
Posts: 661
@tom_boy These rates are not standard in all areas. Best place to find exact figures would be the lands office in that area. But generally, transfers are divided into two categories i. Urban Land [land in the municipalities] - stamp duty rate is 4% ii. Agricultural land Outside the Municipality– stamp duty rate is 2% Percentage on value of property. Except from Stamp Duty Act (Cap. 480)
Quote:
10. (1) All the facts and circumstances affecting the liability of any instrument to duty, or the amount of the duty with which any instrument is chargeable, shall be fully and truly set out in the instrument; and every person who negligently or with intent to defraud the Government- (a) executes any instrument in which all those facts and circumstances are not fully and truly set forth; or (b) being employed or concerned in or about the preparation of any instrument, neglects or omits fully and truly to set forth therein all those facts and circumstances, shall be guilty of an offence and liable to a fine not exceeding one hundred thousand shillings.
In short, failure to declare the correct amount [valuation of the said land] for stamp duty is an offence. The above applies for gifts too where no sale is executed. Hope this helps.
Live and learn; and don’t forget, nothing ventured, nothing gained.
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