Chief govt valuer provides reliable real property valuations

By Dennis Obbo

The head of the Land Valuation Division is the Assistant Commissioner – Land Valuation, euphemistically referred to the Chief Government Valuer (CGV). This is a carry-over from the time of the colonial period.

The title of Chief Government Valuer has been consistently used in reference to this office and so for the purpose of this article that office shall be referred to interchangeably as the ‘Chief Government Valuer’ and the Assistant Commissioner – Land Valuation, for avoidance of causing confusion.
 
The correct nomenclature for that office is “Assistant Commissioner – Land Valuation”.  The Division of Land Valuation is mandated to provide reliable Real Estate and Property valuations to Government.

The responsibilities of the ‘Chief Government Valuer’ include advising Government on Real Estate and Property valuation; this maybe for purpose of either rental, sale, purchase and or compensation by Government; Assessment of Stamp Duty; and Advising Government on Rating Properties.

Others include: Valuation for probate; Determination of premium and ground rent; Valuation of Government pool and institutional houses; Valuation of condominium properties; Valuation of leaseholds for conversion to freeholds; Assisting districts to determine compensation rates; Mediation, adjudication and litigation on property valuations where necessary; and carrying out Local Government rating valuations.

Whereas the Chief Government Valuer is not established under any particular law, it operates in line with a number of subsidiary legislations that clearly spell out its statutory mandate and obligations.

In discharging its functions, the Division of Land Valuation is guided by Articles 26 and 237 of the 1995 Constitution of Uganda, together with the Land Acquisition Act, 1965, Cap. 226; the Land Act 1998, Cap. 227; the Mining Act, 2003; the Registration of Titles Act Cap. 230 and the Petroleum (Exploration and Production) Act, 2000, Cap. 150.

What is of particular importance is the Constitutional obligation that requires acquiring authorities to comply with the provision of “prompt payment of fair and adequate compensation, prior to taking possession or acquisition of the property”.  This Constitutional requirement puts pressure on the Division of Land Valuation to act in a quick and timely manner so that the acquiring authority takes possession as required.

The Public Procurement and Disposal of Public Assets Act, 2003 and its Regulations provides for the Division of Land Valuation to promptly advise on the appropriate purchase, disposal and lease values.

Indeed, the Division of Land Valuation has been involved in the valuation of government houses for disposal to sitting tenants. This exercise has been completed except for a few outstanding cases.

Under the Stamps Act, Cap 342, the Chief Government Valuer is required to determine stamp duty payable when property is transferred between parties; while the Registration of Titles Act, 1924, Cap. 230 requires the Registrar of Titles to demand payment of a fee in respect of assurance of title and in the case of a freehold this fee will be based on the value of the land.

Although the Act does not place the duty to determine the value of the land on the Chief Government Valuer, the current state of affairs in the valuation profession has compelled the Minister to appoint the Chief Government Valuer as the sworn Valuer for this purpose.
 
Access to Land for Public Infrastructure

The duties of the CGV are to value property for purchase, sale, rental and compensation by Government. The available options for accessing land for Public use in Uganda include:

i.    Compulsory acquisition, which refers to the taking of private property by government for a public good in exchange for compensation. The taking must be for public use as the law provides. Compensation is awarded to the affected persons for loss of their property, livelihood and other incidental rights.

ii.    Land Exchange, that considers swapping of property of similar nature, quantity or value between the Project Affected Person(s) (PAPs) and the acquiring authority.

iii.    Outright Purchase where a voluntary transaction of ‘Willing buyer and Willing seller’ is done based on market value of property. No special disturbance allowance is added to the assessed market value of the property.

iv.    Resettlement, which refers to the movement of individuals or groups of people from one location to another either permanently or temporarily. It involves provision of land, shelter and all other human basic survival needs for the period of displacement. It may also include other benefits termed as disturbance awards for re-establishment or economic recovery.

Where compulsory acquisition is considered to be the preferred option it must subscribe to a least the basic principles that:

i.    The affected person is NOT made worse off in financial terms after the acquisition than he/she was before; and that

ii.    Compensation is Prompt, Fair, Adequate and Prior to possession.
 
The Land Acquisition Procedure

The acquisition process begins with planning in a participatory manner to determine the different land options available for meeting the public need. The exact location and size of the land to be acquired is identified.

A notice is published to inform owners and occupants in the designated area that the Government intends to acquire their land. People are requested to submit claims for compensation for land to be acquired.

The notice describes the purpose and process, including important deadlines and the procedural rights of people.

Public sensitisation and consultative meetings provide people with an opportunity to learn more about the project, and to express their opinions and needs for compensation.

The equivalent compensation for the land to be acquired is determined at the stated date of valuation. Owners and occupants submit their claims.

The land is valued by a Government Valuer or by a Private Valuer appointed by the acquiring agency under the supervision of the Chief Government Valuer.

The acquiring agency considers the submitted claim, and offers what it believes to be appropriate compensation. Disclosure of award and negotiations then follow.

Where there is acceptance of the compensation award Government pays people for their land or resettles them on alternative land. The Government takes ownership and physical possession of the land for the intended purpose.

Owners and occupants are given the chance to contest the compulsory acquisition, including the decision to acquire the land, the process by which the land was acquired, and the amount of compensation offered through a cost effective and equitable complaint redress mechanism.

Opportunity for restitution of land is given if the purpose for which the land was acquired is no longer relevant.

The writer is  spokesperson, Ministry of Lands, Housing & Urban Development