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Introduction of new law 81(I)/2011 replacing the Sale of Land (Specific Performance Law) Cap. 232.

The government has introduced a new law replacing the Sale of Land (Specific Performance Law) Cap. 232, entitled: The Sale of Immovable Property (Specific Performance)’ Law of 2011 (Law 81(I)/2011). This law basically prevents a purchaser from being burdened and exposed by the mortgage or bad debt of the vendor who sold him the property in question.

The main provisions of the above law include:

·       The contract of sale must be registered with the Lands Registry within six months from the date of signing of the contract.

·       Where the contract has not been registered within the specified time or in the case where it was not made in writing the purchaser has still the right to ask for a Court order of Specific Performance.

·       Any term in the contract which prevents the contract to be filed with the Lands Registry will be void ab intio (from the beginning).

·       Where the immovable property which is the subject of the sale comprises a part of the immovable property which is registered in the name of the purchaser, the created encumbrance burdens the whole immovable property.

·       The contract of sale must be registered with the Lands Registry before the property is burdened with any encumbrance such as a mortgage.

Any purchaser of property may assign his rights and/or obligations under the contract to an assignee, either gratis, or by the payment of an amount of money. This “assignment contract” can be concluded without the agreement of the original vendor and can be deposited at the Land Registry within six months of its signing, provided the original contract has already been deposited at the same Land Registry Office.
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