LAW DEVELOPMENT CENTRE DEPARTMENT OF POSTGRADUATE LEGAL STUDIES AND LEGAL AID BAR COURSE 2015/2016 TERM IV FINAL EXAMINATIONS LAND TRANSACTIONS Wednesday 17% August, 2016 9:00 a.m. - 1.00 p.m. GENERAL INSTRUCTIONS 1. This is a restricted-open-book examination. 2. You may consult your own notes, LDC handouts, any conventional reference book, Statutes, Rules, Regulations, Law Reports, Digests, practice manuals or other peer reviewed similar material but you should not use nor have in your possession within the examination room or vicinity any publication that is not peer reviewed, handwritten material that is not in your own hand writing, photocopies and typescripts of lecture notes or similar material; or any typescripts of ‘model answers’, worked out examples or answers to previous years individual assessment problems, examinations, case summaries or their photocopies, respectively. 3. YOU SHOULD NOT CONSULT OR EXCHANGE WRITTEN NOTES WITH ANY OTHER PERSON within the examination room or its vicinity. 4, Clarity of expression and appropriate use of relevant authorities attracts extra marks. You are advised to ensure that your hand writing is legible. 5. You should not use Red or Green ink at all to underline authorities or for any other purpose and you should not use any of your names in the preparation of documents found necessary in answering the questions, 6. You should not use nor have in your possession during the examination or within the vicinity of the examination room any mobile phone, computer or other electronic equipment for storing or retrieving information. 7. All Rules, Regulations, Guidelines or other prohibitions or restrictions regarding examinations communicated to you by circular or other mode fully apply to this Examination and must be strictly adhered to. SPECIFIC INSTRUCTIONS This Examination has two questions. All parts of both questions must be answered. The Examination is marked out of 100 Marks.QUESTIO! Khasim Kariuki obtained a loan from Ecron Bank Limited in 2009. The loan debt is repayable by 31° October 2016 and an amount of Shs.46 million is still outstanding. Khasim has suffered several financial setbacks in the past and benefitted from several extensions of the deadline for repayment. He is sure, however, that even this time he will not be able to repay in full by 31% October, but expects no further extension. In fact, Khasim believes he needs a whole year or two to be able to pay up. Khasim is not interested in obtaining any more money until he has paid up what is owed to Ecron Bank Limited but is desperate to have a longer and more flexible repayment regime. Following advice from a friend of his, he approached DFCU Bank Limited, who offer a much lower interest rate and are willing to give a substantially longer repayment period if security in the form of land is provided. Khasim has, therefore, applied to DFCU Bank Limited for a credit facility of Shs.46 million to enable him pay off his earlier loan to Ecron Bank Limited. He has given DFCU Bank a photocopy of his Certificate of Title to land comprised in Kyadondo Block 250 Plot No.23, Bunga, measuring 0.28 hectares registered in his name vide Instrument No.KLA181964 of 31.7.96 and with an encumberance of a Mortgage to Ecron Bank Limited registered thereon vide Instrument No.KLA438450 of 11.12.2009. You are a Legal Officer in DFCU Bank Limited, to whom the file pertaining to Khasim Kariuki’s matter has been assigned. Advise your Head of Department on — () The steps you would take to establish or ensure the viability of the proposed security. (ii) | The various ways in which DFCU Bank Limited may secure its credit facility to Khasim by use of his Certificate of Title to the said land in the event the transaction as a whole is found viable. 50 MarksORANGEVINE TELECOM UGANDA UMITED Pict 1 wampewo Avenue, Kololo. P.O. Box 1664, Kampala. Tel. Nos. 0313546765/762321654 19" August, 2015 M/s Bunjo, Ochan & Company Advocates, 2"™ Floor Uganda House Bi Kampala Road, P.O. Box 1122, Kampala. For the attention of Mr. Benson Ochan, Advocate Dear Mr. Ochan, RE: PURCHASE OF PLOT 42 AND ITS CONVERSION TO FREEHOLD I refer to the discussions | held last evening with you and Mr. Ghandari Patel pertaining to Orangeville’s intended purchase of Plot 42 and its conversion to Freehold. Mr. Ghandari Patel, who owns the land, promised to send me a photocopy of the title to the said land, which he has done. ‘herewith forward the same to you for your kind advice on the viability of our purchase of the said land and on our intended conversion of the same to freehold immediately after the purchase. | would be happy if you reverted to me as soon as is practicable, as we would want to conclude the first transaction by the end of this week. Hl wee and look forward to hearing from you on the matter. Allan B. Griffith . COUNTRY MANAGER Encls.: Subject documents, Copy: Mr. Bullen Leake Estates Advisor World Leaders in telecom technology www.orangeville.incLEASEHOLD REGISTER Volume 314 Folio 10 uGe REGISTRATION CE TITLES ACT CERTIFICATE OF TITLE DESCRIPTION OF LAND ‘The Leasehold land edged red on the plan attached hereto and sitate and known 2 follows:— wer PLOT . Scoot Number: 42 KYADONDO BLOCK 11, NDEEBA Road Name Township/Menkeipatity- NDBERA KAMPALA Discrice: HENGO, Area: APPROX.O.3 OF AN ACRE. € TERM from M"MAY 1957 for Gye at the rene and subject to the covenants-ard-conditions contained or Implled Ii Lease Number -~-~=—~~~~ botind up herewith and to the incumbrances (If any) entered in the Incumbrance Register: ma myeirs nde memenemen HONE Easements PROPRIETORSHIP o—— — - ate and Inst. No. Joteats of Name and Addrass of Proprietor Pere 2416/1957 AT220P-M, INST.143410 VESTED BY VIRTUE OF SEC.I2 OF DECREE " i AN NO.27 OF 1973 Ve ohmitssionrn FOR TAND ercistrationt Dave of issue: zaJUNE, 1957 3 pact 4 Registrar of Ties Owners Copy,Date and inst: Ne. 2619/1995 AT 11:00 AM, > INST.247312 qi 1 Proprictorship continued Name and Address of Heuprietor IE EXPROPRIATED PROPERTIES ACT OF 1982 : u 1 HANDARI PATEL OF P.O, BOX 133 KAMPALA ISSUED CERTIFICATE AUTH REPOSSESSION NO.2017 DATED 14” JULY 1995 UNDER SECTIONS 4 & 5 OF RISING Tes | Spears fox N 1 ATGISTHATION: (& ‘THE REPUBLIC OF UGANDA NAMIREMBE DIOCESE OF THE CHURCH OF UGANDAT™ MH GSeby 94 THIS LEASE, mace ths eigntsen day of May the year one thousand rine hunered and fity seven between THE REGISTERED TRUSTEES OF NAMIREMBE DIOCESE of Uganda of P.O. Box 12, Kampata (hereinalter refered 103s "ie Lessor") of the (ne part, and GHANDAR! PATEL of P.O. Box 123 Kamoala (hereinafter called the Lessee ) ofthe other par. WITNESSETH as folows 4 In consideration ofthe sum of shiliags Four nurdred thovsand only (Shs 400,000) ale tthe Lessor bythe Lessee ono fore ihe execu of hese yosents ie receipt \whereo the lessor hereby acknowledges) and also in corsigerton ol the rent hereby reserves and the Covenanls and conitons hater coniaied on te ptt othe Lessee be ‘served and performed the Lessor herby derises unt the Lesseo AL THAT piece of land Int Néeeba known as Pot No. 42, Ndeebs measuring aporoxinaly 0.26 aces fora term o} ‘Shy years rom ne 11" cay of Maj, te year ane ousar analy seven, YIELDING AND PAYING tortor during the eo ter te yary rent of 00,00 ‘one instaiment annual in advance onthe ist dy of January of every yea 2, THE LESSEE HEREBY CONVENANTS withthe Lessor as follows, namely ~ (a) To observe and perform al the conditions a lease or otherwise here -avenants mphes by law inthis (6) To erecta development an te lang af mina value of Sh 2 800.000 (Two Imilion e1ght hunted thous) (6) To maintain the agreed upcn dovolopment te the stisaction ofthe Lessor (8) Notwithout the prior writen consent ofthe Lessor to assign, sel, sublet or in any way part with possession of the demised premses (¢) To use the promises sorely for rescental purposes.8 ee 3. When the Lessee shall have comphed with the building covenant herein and ithere all not atthe time be any existing breach or non observance on the part ofthe Lessee of any of the covenants and conditions implied or expross the Lessee shal ‘enjoy quiet and uninterrupted use of the «premises. 4 The Lesse shal not under any cumstances change o modity he structure on \ the said land throughout the term ofthe lease without fist obtaining the Lessors {| witon concent {i 5 INWITNESS WHEREOF the Common Seal ofthe Lessor has hereunto been affixed ‘and the Lessee has/have hereunto set hishherthelr Nand Icaused thel common seal | tobe affixed hereto tne day and year fst above writen. mmo REGISTERED TRUS OF NAMIREMBE DIOCESE The SEALAND SIGNATURES of | Co, Moe Bishop Duo Olindo Muro Bishop Nathan Kamulegeya SIGNED byte sid 1 sem HANGAR PATEL bw oeFors "caarasttay ak Of LasINCUMBRANCES Data, time and last. No. 197s AT LL00 AM, INST, 191310 [FOR A TERM OF 37 YEARS W. Particulars BA Page 10" OCTOBER, 1979 PAYING Slisaoou-annusiy. (AE Registrar of Tle! Sagnature at Hoyisttar |. SUBLEASE TO MAYANJA TRADING COMPANY LIMITED OF 20. BOX I84t, NBL,INCUMBRANCES Dats, time - T Signin ot and Inst. No. Particulars Bouistar | TLI979 BUBLEASE TO MAYANIA TRADING COMPANY LIMITED Of 20. BOX i841 noubba, Ais f AT ULGD A.M, [POR A TERM OF 37 YEARS W.I.F 11" OCTOBER, 1999 PAYING SHS 4o0yy. a | INST, 191310 ( I Pick LS | | | “Pogiwar of TileQUESTION 2 The attached caveat has been lodged at the Land Registry at KCCA. The Registrar of Titles in Charge of the said Registry has asked you, as an Assistant Registrar of Titles stationed at the said Registry, to furnish a legal opinion on the merits of the caveat as lodged. Render the required opinion to your senior colleague, including the steps he should take upon accepting or rejecting the caveat. (40 marks) THE REPUBLIC OF UGANDA THE REGISTRATION OF TITLES ACT (CAP 230) FLAT 12.C BLOCK , BUGOLOBI FLATS LRV 112 FOLIO 14 PLOT 34 BUGOLOBI REG. PROP, NATIONAL HOUSING AND ‘CONSTRUCTION COMPANY LIMITED. P.O, BOX 659, KAMPALA, CAVEAT (Section 139 RTA) TAKE NOTICE THAT, I JOSEPHINE MULEKWA of C/o M/s M/s Bunjo, Ochan & Company Advocates, 2 Floor Uganda House Building, Kampala Road, P.O. Box 1122 Kampala do claim on interest in the land comprised in the above-captioned presents as the spouse of Luke Mulekwa, the said land being family land entitling me to give or withhold consent in respect to any transaction pertaining to the said land AND I HEREBY DO FORBID the registration of any person as transferee or proprietor of the said land or any instrument affecting the said land and estate unless I consent in writing thereto, I appoint M/s M/s Bunjo, Ochan & Company Advocates, 2 Floor Uganda House Building, Kampala Road, P.O. Box 1122, Kampala, as the place at which notices and proceedings relating to this caveat may be served. DATED at Kampala this 2” day of March, 2015. Signed by the said JOSEPHINE MULEKWA .. Bensonocunn In the presence of: Apyocare... S .0.BOx 1122 WITNESS. Kamentn an & Company Advocates, 2" Floor UgandTHE REPUBLIC OF UGANDA THE REGISTRATION OF TITLES ACT (CAP 230) FLAT 12 C BLOCK D, BUGOLOBI FLATS LRV 112 FOLIO 14 PLOT 34, BUGOLOBI REG, PROP.: NATIONAL HOUSING AND CONSTRUCTION COMPANY LIMITED, P.O. BOX 659, KAMPALA AFFIDAVIT IN SUPPORT OF CAVEAT 1, JOSEPHINE MULEKWA of C/o M/s Bunjo, Ochan & Company Advocates, 2" Floor Uganda House Building, Kampala Road, P.O, Box 1122, Kampalado =. hereby solemnly make oath and state as hereunder; 1. That Iam an adult female Ugandan of sound mind. 2. That I am the lawfully wedded wife of Luke Mulekwa having been admitted to Holy Matrimony with him at the St. Augustine Chapel, Makerere, Kampala on 10" June, 1996. A copy of the Certificate of Marriage is herewith attached and marked as Annexture A”, 3. That the said Luke Mulekwa and myself are residents of FLAT 12¢ BLOCK D, Bugolobi Flats, whereat we are sitting tenants of the National Housing and Construction Company Limited. 4. That my said husband, our children and I have occupied the said J Property continuously for the last 26 years. 5. That the National Housing and Construction Company Limited offered all sitting tenants, including my husband, an opportunity to purchase their respective Flats and FLAT 12C BLOCK D was offered to my husband for purchase at Shs.120 million. 6. That the National Housing & Construction Company Limited also offered all sitting tenants, including my husband, a cheap and convenient 15 year mortgage facility through the Housing Finance Bank Limited with our said Flat as the security for the facility. 7. That I am informed by my lawyers Bunjo, Ochan & Company which information I verily believe to be correct and truthful une g ithat the said offer of sale from the National Housing and Construction Company Limited coupled with my family’s long period of residence in the said Flat on the basis of which the offer from the National Housing and Construction Company Ltd was made vested in my husband an equitable interest in the said Flat which he cannot divest without my spousal consent. 8. That in disregard of the fact that the said Flat is our only family residence, my husband opted to purchase the said same together with an unknown third party, one Marylin Ndekwa, as co-purchasers and applied for the mortgage without obtaining my consent as his spouse and I am aware that my husband and the said Marylin Ndekwa have since started the process of obtaining the mortgage jointly, which mortgage had been reserved for my husband alone. 9. That my husband is a lecturer at Kyambogo University whereat he earns Shs.3,000,000/- (Three milion shillings only) every month which could enable him to comfortably take on and service the said mortgage facility. 10.That I am also a self employed business woman with regular earnings and capable of meaningfully contributing to my husband's repayment and servicing of the mortgage debt without the need for a third party. a 11.That I am further informed by my afore-mentioned lawyers which Information I verily believe to be correct and truthful that a transfer of the Flat into the name of my husband jointly with the said Marylin Ndekwa or any other person shall deprive the said property of its status as our family land. 12.That 1 am further informed by my lawyers M/s Bunjo, Ochan & Company Advocates which information I verily believe to be correct and truthful that the sale of the Flat jointly to my husband and Marylin Ndekwa or any other person under a mortgage with the said Flat as security Is in abrogation of my right as a spouse entitled to give or withhold spousal consent in respect of the said mortgage and is also in abrogation of my children’s and my right to shelter and security of occupancy for which the protection of family land is purposely enshrined in the law. 13.That my family and I are still resident in Flat 12C Block D Bugolobi Flats as our family land and its purchase by my husband under a Pemortgage with the Flat as security requires my spousal consent and it on is pertinent that I lodge a caveat thereon to protect my interest and the interests of my children in respect of our said family land, 44,That 1 swear this affidavit in support of @ caveat to safeguard my statutory interest in the subject land which constitutes our family land and to prevent any dealings therein. 15. That whatever is stated herein above is true and correct to the best of my knowledge and belief save for the contents of paragraphs 7, 11 and 12 herein above which are based on information from my lawyers mentioned therein and which 1 verily believe to be correct and truthful Sworn at Kampala this 2%! day of March, 2015 by the said JOSEPHINE MULEKWA a DEPONENT BEFORE ME Drawn & Lod M/s Bunjo & Ochan 2" Floor Uganda House Building, Kampala Road, P.O. Box 1122, Kampala.ST. AUGUSTINE'S CHAPEL MAKERERE Marriage Certificate Dra sntm cia 1,Rev. Fr. 2 OT ce = Centity thar. Ke [Vivakes of Gow Tots, pos V3 oa of 6: have been Legally Married This_0."_day of a _ inthe Year of Ourlord 47.76 ond thus received Holy Matrimony under the Catholic Church Rite Officiant: Rev. Witnesses: Mr. . and tami, aee skeet BUGOLOBI LCI UPPER BLOCKS NAKAWA DIVISION, KAMPALA DISTRICT This is to certify that... JOSEPHINE MUL resident of this area and resides in Hou: HELRT VIC falc Ley CHAIRMAN LOD KWA. whose photograph appears on this card is @ permanent “a K ics loaphi nol | TePhunel DER’SIGNATURE,| ny , DIAMOND : | DIB = | pe oeroodTstsakcogmen sy | Prd cake mais JOSEPHINE MULEKWA Thankyou for being our valued customer Bank charge 2,000/=; 10% Excise Duty 200/=; Total charge 2,200/= beUganda Revenue Auth PLOT ML33/M194, NAKAWA INDUSTRIAL AREA, P.0.80X 7279 KAMPALA, UGANDA wie Acknowledgement Receipt Declaration of Instruments Andividual) it For Goneal Tox Guestons 4 Colour el Foe rkbar (258) 44-7480000 rte ots UR wet pot ttpaltura.go.ug eee MULERWA here Date : 04/03/2015 se Aelence ig enanasz493323 KAMPALA KAMPALA ‘il can cenrnat Dit KAMPALA ers {Eenthad DMISION : Section A Declaration of instrument For Stamp Duty | [THWotapaicnitanite NA 2 Name of Taxpayer JOSEPHINE MULEKWA, Instrument Number fa 4 hype of strument evoterten icing overeat || | : fitetetand S| = femount of uty WH) hoodoo 1 [6 payment registration Number 2180002355518 7 tokestamped iL facton betas ot marraige E+ uame ot ctherpary + —_(obte Number x No ee [kes oF mes ales - Section C - Attachments Received [particulars \No. of copies [CAVEAT (under the Registration of Titles Act o aca fry other law eating to theregistation of fcrimaryrstument) + 1 (Copies) “age, tle to lana) | wsi8. Identification Proof Type. [identification Number Section D - Official URA Representative Official URA Representative Please check for the status of your application at the nearest tax office or | Your Search coce: 67883170665CN Note: . 34/2015 2:49 It