Legal Advice

A BIRD EYE’S VIEW TO BUYING PROPERTY IN THE GAMBIA

This is a simple and basic introductory guide to buying property in The Gambia. The Laws relating to the purchase and sale of property in Gambia is similar to the system in the United Kingdom yet different some in some aspects. The property laws of the Gambia are based on the English Common Law and land ownership rights are very well protected under the laws of the Gambia. The Gambia operates a very liberal economy and does not prohibit or restrict foreigners from owning land in the Gambia. The Constitution of the Gambia guarantees the property rights for all (Gambians and non-Gambians). Buying land or property is a big investment and the need for professional advice BEFORE PURCHASING A PROPERTY IS VERY IMPORTANT. This is merely a guide and should not be used as a basis for making any property purchase in the Gambia.

Types of titles:

Freehold: This title gives the holder absolute ownership of the property and it is therefore the best form of title. All freehold land is registered at the Registry of Deeds, Attorney General’s Chambers and ownership of title can be confirmed by conducting a search at the Registry of Deeds.

Freehold land is not common nowadays and most freehold property land was granted during the colonial days by the Colonial Governor at the time.

Tips to buying Freehold Property:

Conduct search through your solicitor.
Agreement of Sale ( prepared by your solicitor ).
Deed of Conveyance (prepared by your solicitor).

Leasehold: All property except Freehold Property is vested in the State and is therefore deemed State Land. This means that the State is the Lessor and grants a Lease to the Lessee for a period of 99 years. Some Leases are granted for 21 years but under the State Land Act 1991, all such Leases are deemed to have been granted for 99 years. Leasehold title is renewable for a further term upon the expiry of the initial 99 years. Unlike Leasehold interest under English common law, a Lease under the laws of the Gambia is renewable for a further term provided that the Lessee is not in breach of the covenants in the Lease i.e covenant erect a dwelling house. Leasehold title is very good legal title recognized by Law and the Lessee’s ownership or title in the Lease Land can be assigned, mortgaged or charged provided that permission of the Secretary of State for Lands and Surveys is obtained. This is a legal requirement to ensure Leasehold Properties are used for the purpose they were obtained and that the covenants of the Lessee to pay rates, land rent to the state are complied with. In other words as long as the Lessee abides by the covenants in the Lease, the Lease will be renewed for a further term. In any case, 99 years is as good as absolute ownership!!!

The title holder of a Lease property can be established by conducting a search at the Registry of Deeds, Attorney Generals Chambers as Leases are only valid in Law if registered at the Registry of Deeds.

When purchasing Leasehold property, the following documents are usually prepared by your solicitor.

Agreement of Sale
Deed of Assignment
Completion of Consent to Assign Form.

The Seller is responsible for the payment of Capital Gains Tax and the Buyer pays the Stamp Duty. Capital Gains Tax is assessed by The Gambia Revenue Authority is currently 25% of the gain realized by the seller or 15% of the sale price whichever one is greater…the tax man always wins!!! Stamp duty on the other hand is fixed at 5% of the sale price. You are reminded that you need to obtain a Tax Identification Number (TIN) in order to pay your taxes in The Gambia. The TIN can be easily obtained at The Gambia Revenue Authority Offices and the form currently costs D25.00.

TIPS FOR BUYING LEASEHOLD PROPERTIES

1.Confirm ownership through your solicitor before paying any money!

2. Ensure the use of property on Lease suits your requirements i.e. residential if

you want to build a residence.

3. If you see built structures in the property …make enquiries from neighbours!!

4. Seek advice from your Solicitor before committing your funds…

Customary Land: Customary Tenure Land is land that is owned and occupied by families or groups of families usually over a long period of time. The title or ownership to this type of land is established by customary law which is recognized by the Laws of The Gambia. A lot of land in The Gambia particularly in the provinces, Kombo North District and Kombo South are customary land. The heads of villages known as Alkalo’s can confirm customary land ownership in their villages. Customary land is recognized by law and once the property is transferred to the buyer, he or she can apply for a lease of the property from the State. Please note that customary land is erroneously referred to as “FREEHOLD” land but this is NOT THE CASE. Customary tenure land is essentially considered as State Land and can be leased by the State to the purchaser/owner of this type of land. This process involves making an application at the Department of Lands and Surveys by purchasing a Lease Application Form. I must advise that leasing Customary Land is time consuming and tedious process but is advisable. There are persons who can render such services in the Gambia.

Below is a guide to buying customary land….which is by no more exhaustive but provides a check list.

Please seek legal advice before paying a single Dalasi, Pound, Euro or Dollar!!. The ownership of Customary Land is in many cases not registered so it is very important to ensure the person proposing to sell the property is the owner.

TIPS TO BUYING CUSTOMARY LAND!!

Seek legal advice before committing your funds.
Visit the site with ALKALO or his representative to confirm that the vendor is the owner.
Take copies of documents of title to your Solicitor for advice before paying a deposit.
Take copies of documents of title to your Solicitor for advice before paying a deposit.
Confirm with the Department of Lands and Surveys to ensure that the land is not reserved.
For properties within close proximity to the sea, confirm with The Gambia Tourism Authority (GTA) whether property does not fall within the tourism development area (TDA). Any property that falls within the TDA cannot be sold except with the consent of The Gambia Tourism Authority and the Secretary of State for Lands.
Ensure that the land use is specified i.e the land use report/clearance must stipulate that the land is for residential purposes and not agricultural!
Engage a lawyer to prepare a conveyance.
Ensure you have all the proper documentation.
Apply for a Lease from the Government once the transfer of the property at the Local Area Council is completed.

Documentation/Procedure for transferring Customary Land.

Village Transfer Form endorsed by Alkalo ( Village Chief)
Purchase Local Government Transfer of Ownership form from Area Council.
Get approval for Sketch Plan of the property and clearance for Land Use from the department of Physical Planning.
The capital gains tax must be paid at The Gambia Revenue Authority.

It is very important to ensure that a deed of conveyance is prepared your Solicitor in respect of the property to ensure that the property sale is registered at the Registry of Deeds, Attorney General’s Chambers.

For more information feel free to contact the author of this opinion by email on: info@temple.gm

Disclaimer :This opinion cannot be relied on as a basis for purchasing or selling any property in the Gambia. The author’s opinion cannot be used as a substitute for legal advice. You are strongly advised to seek legal and other professional advice before purchasing or selling your property in the Gambia.

*** REGISTERING A PROPERTY IN THE GAMBIA. (Summary)

Registration Requirements:

No:	Procedure	Time to complete:	Cost to complete:
1*	Application for Ministerial Consent to transfer leasehold property	approx. 365 days (simultaneous with procedures 2 and 3)	D 200 for the Application form
2*	Preparation of Transfer Deed by a lawyer	2-7 days (simultaneous with procedures 1 and 3)	2-3% of purchase price (lawyer’s fees)
3*	Title search by lawyer at the Office of the Registrar of Deeds	1-2 days (simultaneous with procedures 1 and 2)	included in Procedure 2
4	Payment of Capital Gains tax and Stamp Duty at the Department of Income Tax	1 day	Capital Gains Tax = 15% of the purchase price or 25% of the sale profit (whichever is greater); Stamp Duty = 5% of purchase price
5	Transfer deed is brought to the Registrar General’s Office for registration	3-7 days	D 200 (Registration fee)

* Takes place simultaneously with another procedure.

Procedure 1.: Application for Ministerial Consent to transfer leasehold property
Time to complete:: approx. 365 days (simultaneous with procedures 2 and 3)
Cost to complete:: D 200 for the Application form
Comment:: Because the State owns most of the land in Banjul, the property is technically leased. The vendor buys and submits the Application form for Permission at the Department of Lands and Surveys. The Lands Department conducts an internal search for other files connected with the property. These files need to be attached to the application. The application then leaves the Lands Department and goes to a different office within the Department of State for Lands. The Secretary of State for Local Government and Land indicates approval and then the application is sent back to Lands Department. The Director of Lands issues the letter of consent for the transfer of the property. The lease is usually 99 years, with the option of another 99 years. The vendor also brings receipt showing that land rents have been paid up to date.
Procedure 2.: Preparation of Transfer Deed by a lawyer
Time to complete:: 2-7 days (simultaneous with procedures 1 and 3)
Cost to complete:: 2-3% of purchase price (lawyer’s fees)
Comment:: The lawyer then prepares the transfer deed. Sometimes the lawyer prepares the sale-purchase agreement, if payment is by installment.
Procedure 3.: Title search by lawyer at the Office of the Registrar of Deeds
Time to complete:: 1-2 days (simultaneous with procedures 1 and 2)
Cost to complete:: included in Procedure 2
Comment:: The purchaser’s lawyer conducts a title search at the Office of the Registrar of Deeds within the Office of the Attorney General. The search costs about D 200-500, but this is usually included in the lawyer’s fees. Sometimes, the lawyer may need to conduct an additional search at the Lands Department if files are missing at the Office of the Attorney General.
Procedure 4.: Payment of Capital Gains tax and Stamp Duty at the Department of Income Tax
Time to complete:: 1 day
Cost to complete:: Capital Gains Tax = 15% of the purchase price or 25% of the sale profit (whichever is greater); Stamp Duty = 5% of purchase price
Comment:: Once permission has been received, the vendor must pay capital gains tax and the purchaser pays stamp duty at the Department of Income Tax. Details of permission are inserted into the transfer documents. And, as of 2007, all those wishing to pay taxes must possess a tax identification number (TIN) issued by the Ministry of Finance, usually upon a company's registration/incorporation. Stamp Duty will not be accepted unless Capital Gains tax has been paid. Once they are paid, the purchaser will obtain receipts with proof of payment and the transfer deed will be stamped.
Procedure 5.: Transfer deed is brought to the Registrar General’s Office for registration
Time to complete:: 3-7 days
Cost to complete:: D 200 (Registration fee)

Comment:The transfer deed is given a serial registration number, entered into the registers. One copy is retained with the Registrar General, and another one is returned to the purchaser. In theory, the document is signed by the Registrar General – but often it is done by one of the lawyers in the Registrar General’s Office. Together with the original lease document, this document constitutes the new title.








*** STARTING A BUSINESS IN THE GAMBIA. (Summary)

Registration Requirements:

No:	Procedure	Time to complete:	Cost to complete:
1	Search for company name	1-2 days	GMD 50
2	Notarize company statutes	1 day	GMD 150
3	Obtain tax identification number (TIN) from the Gambia Revenue Authority	1 day	GMD 25
4	Payment of stamp duty and deposit of corporate tax with Commissioner of Income Tax	1 day	see comments
5	Register employees with the Social Security and Housing Finance Corporation	2 days	no charge
6	Register with the Commercial Registry	2 days	GMD 5000
7	Obtain operational license	1 day	GMD 5000
8	Make a company seal	18 days	USD 200

Procedure 1.: Search for company name
Time to complete:: 1-2 days
Cost to complete:: GMD 50
Comment:: The name search is conducted manually at the Commercial Registry.

Procedure 2.: Notarize company statutes
Time to complete:: 1 day
Cost to complete:: GMD 150
Comment:: Although there are no set notary fees, GMD 100-150 is commonly charged.

Procedure 3.: Obtain tax identification number (TIN) from the Gambia Revenue Authority
Time to complete:: 1 day
Cost to complete:: GMD 25
Comment:: All businesses must obtain a tax identification number (TIN) before paying company tax and stamp duty and registering with the Central Registry. To obtain the identification number, the company must submit a form, the notarized articles and memorandum of association, and the founders’ proof of identification.

Procedure 4.: Payment of stamp duty and deposit of corporate tax with Commissioner of Income Tax
Time to complete:: 1 day
Cost to complete:: see comments
Comment:: The fee for the incorporation certificate is about GMD 500. Stamp duty is GMD 1000 for 3 copies of the company incorporation documents, one of which must be deposited with Companies Registry and one with the Commissioner of Income Tax. The deposit of corporate tax with Commissioner of Income Tax varies, starting from about GMD 5,000, payable before incorporation at the Companies Registry.

Procedure 5.: Register employees with the Social Security and Housing Finance Corporation
Time to complete:: 2 days
Cost to complete:: no charge
Comment:: Employees pay 5% of their monthly salary to the social security department. The employer contributes 10% of the employees’ salary. Depending on the number of employees, this process takes at most 7 days.

Procedure 6.: Register with the Commercial Registry
Time to complete:: 2 days
Cost to complete:: GMD 5000
Comment:: The registration fee varies depending on the company’s share capital. It is based on a tariff published by the Finance Ministry. In 2005, the tariff (stated in the national currency, the Dalasis) was as follows:
- GMD 5,000 to GMD 1 million: GMD 5,000.
- GMD 1 million to GMD 10 million: GMD 25,000.
- GMD 10 million to GMD 20 million: GMD 35,000.
- GMD 20 million to GMD 40 million: GMD 65,000.
- GMD 40 million to GMD 59 million: GMD 85,000.
- GMD 60 million and up: D 100,000.

Procedure 7.: Obtain operational license
Time to complete:: 1 day
Cost to complete:: GMD 5000
Comment:: The standard fee is GMD 5,000 for the Banjul City Council and the largest municipality (Kinifing Municipality). This license must be renewed annually.

Procedure 8.: Make a company seal
Time to complete:: 18 days
Cost to complete:: USD 200
Comment:: Although company seals are usually made in the United Kingdom, not locally in Gambia, certain accountancy firms in Gambia can make the arrangements. The cost depends on the quality and size of the seal.

*** Dealing with Construction or Building Permits in The Gambia. (Summary)

Registration Requirements:

No:	Procedure	Time to complete:	Cost to complete:
1	Consult and purchase the application for development permit from Department of Physical Planning (Form 1)	1 day	no charge
2	Submit development permit application	1 day	GMD 13,006
3	Obtain development permit from Development Control Unit (Form 2)	28 days	no charge
4	Receive inspection	1 day	no charge
5	Receive inspection	1 day	no charge
6	Submit certificate of completion	1 day	no charge
7	Receive inspection	1 day	no charge
8	Obtain certificate of completion	35 days	no charge
9	Request electricity connection approval and inspection from NAWEC	1 day	GMD 200
10*	Receive inspection from NAWEC	1 day	no charge
11*	Receive connection to electricity services from NAWEC	55 days	GMD 11,500
12*	Request water connection approval	1 day	GMD 200
13*	Receive inspection from water authorities	1 day	no charge
14*	Receive connection to water services	72 days	GMD 8,500
15*	Request fixed telephone line approval and inspection	1 day	GMD 850
16*	Receive on-site visit from GAMTEL	1 day	no charge
17*	Receive connection to telephone	40 days	no charge

* Takes place simultaneously with another procedure.

Procedure 1.: Consult and purchase the application for development permit from Department of Physical Planning (Form 1)
Time to complete:: 1 day
Cost to complete:: no charge
Comment:: The application is requested by the Department of Physical Planning. Companies often consult with the authorities about the project.
Name of Agency:: Planning Authority

Procedure 2.: Submit development permit application
Time to complete:: 1 day
Cost to complete:: GMD 13,006
Comment:: The application for a development permit consists of: - Form 1. - Drawings (three sets). - Evidence of ownership. The application must be submitted with three complete set of drawings. After the development permit is issued, one set of drawings will be returned to the owner, and this set of approved plans must be kept at the building site, open to inspection by the authorities. The owner must also show evidence of ownership (photocopy of the title deed lease document or certificate of occupancy). The cost since January 2008 is GMD 10 x 1,300.6 = 10,404.8 + GMD 15 (fee for form) = GMD 13,021.
Name of Agency:: Department for Physical Planning and Housing (DPPH)

Procedure 3.: Obtain development permit from Development Control Unit (Form 2)
Time to complete:: 28 days
Cost to complete:: no charge
Comment:: Upon scrutinizing evidence of landownership, land use, and building plans, the Planning Authority approves the application, and the Development Control Unit issues a development permit, which consists of the following: - Form 2. - Approved plans, stamped and signed (one set). - Form 4, Commencement notice. The developer must complete and send Form 4 to the Department of Physical Planning before starting any construction work. - Form 9, Notice of completion. The authority does not have an official fee schedule. The Development Control Regulations were adopted in 1995 and have not been altered since then. Lack of time-limits for this procedure exacerbates the fact that applicants have to do a constant follow up. In principle, the Planning Authority should be notified of the commencement of the construction works, but this is not happening in practice.
Name of Agency:: Development Control Unit (Department for Physical Planning and Housing)

Procedure 4.: Receive inspection
Time to complete:: 1 day
Cost to complete:: no charge
Comment:: The Department of State for Local Government has the right to inspect during construction. Inspections as a matter of fact should be phased after each major stage of construction. But the inspections practically turned into random ones and take a few hours. If they find a building without a building permit they make you get one afterwards. Often the inspection will occur if there is a problem reported or if the department suspects that the developer did not pay all the required fees. BuildCo does not need to request the inspection.
Name of Agency:: Development Control Unit (Department of State for Local Government)

Procedure 5.: Receive inspection
Time to complete:: 1 day
Cost to complete:: no charge
Comment:: The Department of State for Local Government has the right to inspect during construction. Inspections as a matter of fact should be phased after each major stage of construction. But the inspections practically turned into random ones and take a few hours. If they find a building without a building permit they make you get one afterwards. Often the inspection will occur if there is a problem reported or if the department suspects that the developer did not pay all the required fees. BuildCo does not need to request the inspection.
Name of Agency:: Development Control Unit (Department of State for Local Government)

Procedure 6.: Submit certificate of completion
Time to complete:: 1 day
Cost to complete:: no charge
Comment:: At the end of the construction works, the Planning Authority should be notified. The developer must fill out Form 9 and send it to the Development Control Unit. The Authority would then come out to the construction site to issue a Certificate of Completion. This step is widely not practiced, however some companies and foreigners do follow this requirement.
Name of Agency:: Development Control Unit (DCU)

Procedure 7.: Receive inspection
Time to complete:: 1 day
Cost to complete:: no charge
Comment:
Name of Agency:: Development Control Unit (Department of State for Local Government)

Procedure 8.: Obtain certificate of completion
Time to complete:: 35 days
Cost to complete:: no charge
Comment:: The certificate of completion is needed to obtain a water and electricity connection. There is no need to update the property title for the inclusion of the building.
Name of Agency:: Development Control Unit (DCU)

Procedure 9.: Request electricity connection approval and inspection from NAWEC
Time to complete:: 1 day
Cost to complete:: GMD 200
Comment:: There is an inspection after BuildCo applies for electricity. Note that the application fee is deducted from the connection fee. The typical wait time, after request, is 4 weeks (28 days).
Name of Agency:: National Water and Electricity Company (NAWEC)

Procedure 10.: Receive inspection from NAWEC
Time to complete:: 1 day
Cost to complete:: no charge
Comment:
Name of Agency:: National Water and Electricity Company (NAWEC)

Procedure 11.: Receive connection to electricity services from NAWEC
Time to complete:: 55 days
Cost to complete:: GMD 11,500
Comment:: The GMD 11,500 cost is for provision of electrical power and meter, provided that there is a main supply not more than 40 meters from the property. The developer will cover cost of any additional cost to extend existing main power supply; this could extend the completion time by 1–2 months.
Name of Agency:: National Water and Electricity Company (NAWEC)

Procedure 12.: Request water connection approval
Time to complete:: 1 day
Cost to complete:: GMD 200
Comment:: The developer must apply to the National Water and Electricity Company for the water and sewage connection. Moreover, the developer must complete the works down to, and including, a manhole within 3 meters of the plot boundary nearest to the sewer. After the application for the water and sewage connection, the water and electricity utility performs an inspection. Note that the application fee is deducted from the connection fee.
Name of Agency:: National Water and Electricity Company (NAWEC)

Procedure 13.: Receive inspection from water authorities
Time to complete:: 1 day
Cost to complete:: no charge
Comment:
Name of Agency:: National Water and Electricity Company (NAWEC)

Procedure 14.: Receive connection to water services
Time to complete:: 72 days
Cost to complete:: GMD 8,500
Comment:
Name of Agency:: National Water and Electricity Company (NAWEC)

Procedure 15.: Request fixed telephone line approval and inspection
Time to complete:: 1 day
Cost to complete:: GMD 850
Comment:: The application is submitted to Gambia Telecommunications (GAMTEL), which upon review, sends an inspector to the site.
Name of Agency:: Gambia Telecommunication Company (GAMTEL)

Procedure 16.: Receive on-site visit from GAMTEL
Time to complete:: 1 day
Cost to complete:: no charge
Comment:: Ten working days after an application is submitted, GAMTEL sends a site surveyor to inspect the property and determine any additional fees required for installation.
Name of Agency:: Gambia Telecommunication Company (GAMTEL)

Procedure 17.: Receive connection to telephone
Time to complete:: 40 days
Cost to complete:: no charge
Comment:
Name of Agency:: Gambia Telecommunication Company (GAMTEL)


: *** (Cost of fees mentioned are subject to possible changes)

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