Buying Land With Unpaid Ground Rent or Rates
Updated 3 November 2026 · Land & Property editorial team
Treat the seller's unpaid rates and ground rent as your risk until proven otherwise. As of November 2026, KCCA says it can recover unpaid rates from the property itself, including by auction, and that a lessor can re-enter a lease over unpaid ground rent. So get a written arrears statement before you pay, and make clearance a condition of completion in the sale agreement.
- Rates recovery (KCCA)
- Warrant, auction of the property, or rent paid direct by tenants
- Registration needs (KCCA)
- A certificate showing no rates arrears
- Ground rent default (KCCA)
- Lessor may re-enter the plot or recover by distress
- Where it applies
- KCCA figures cover Kampala only; ask other councils
Do I pay the seller's unpaid ground rent or rates?
You may, even if you did not owe it. The law makes the owner liable for rates and the lessee liable for ground rent, so the debt starts as the seller's. But the remedies the authorities describe are aimed at the property, not only at the person. KCCA says it can obtain a warrant and auction the property to recover unpaid rates and interest. For ground rent, KCCA says the lessor may re-enter the plot and lease it to a new tenant. If you buy first and ask later, you are the one holding the land when the authority acts.
We have not found a statute we can cite that settles in every case whether a buyer personally inherits a seller's arrears. That uncertainty is the reason to settle them before completion and not argue about them afterwards. This page gives a buyer's sequence for doing so. For what rates and ground rent are in the first place, see property rates.
Which arrears can follow the land?
| Charge | Who is liable | How it can reach a buyer |
|---|---|---|
| Property rates | The owner, under the Local Government (Rating) Act 2005 | Warrant, auction of the property, rent from tenants redirected to the authority; no registration without a no-arrears certificate |
| Lease ground rent | The lessee, under the lease | Re-entry by the lessor or recovery by distress |
| Interest on either | The same person | Adds to the balance until cleared |
The key detail from KCCA is the certificate: titles and documents cannot be registered without a certificate showing no rates arrears. For a buyer in Kampala, that turns arrears from a hidden risk into a gate you have to pass anyway, and you can use it to your advantage in negotiations.
How do I request an arrears statement?
- Rates in Kampala: KCCA says a buyer can request a certificate of arrears from the seller or obtain one from KCCA for a fee. Ask the seller first, then verify with the authority.
- Rates elsewhere: The Local Governments (Rating) Act, 2005 applies to local governments generally. Section 33 gives a buyer the right to demand a certificate of arrears from the seller and, if the seller does not produce one, to enquire from the local government on payment of a prescribed fee. Section 34 bars registration of a transfer unless the local government has issued a certificate that no arrears are due. Ask the council that serves the plot for the certificate and its fee.
- Ground rent: Ask the landlord or lessor, in writing, for a statement of ground rent paid to date, the amount outstanding and the next revision date. The lease will name the landlord.
- Match the papers: The plot number, block and owner name on every statement should match the title you saw at the registry.
Do this before you hand over a deposit. A seller who cannot or will not produce the papers is telling you something. Our 10 Mistakes First-Time Land Buyers Make in Uganda lists ignoring arrears as one of the common errors.
What is the lease forfeiture risk?
On leasehold land, unpaid ground rent is not just a debt. KCCA states that the lessor may re-enter the property and lease it to a new tenant, and that arrears can lead to recovery by distress. In other words, the thing you are buying, the lease, can be at risk.
Read the lease itself. Check the term remaining, the rent reserved, the revision clause and any conditions about development. If a revision is due, find out the new figure and whether it has been agreed. Our guide to Leasehold Land in Uganda explains the tenure in more detail.
How do I clear arrears in the deal?
Put clearance into the agreement, not into a verbal promise. A sensible set of clauses, which is our editorial suggestion and not a legal form, includes the following:
- The seller warrants that all rates and ground rent are paid up to the date of completion.
- The seller delivers the arrears certificate or lessor statement before completion.
- If a balance exists, it is deducted from the price and paid directly to the authority or lessor, with a receipt to you.
- If the figure is not yet known, a retention is held until the final statement is issued.
- The seller indemnifies you for any arrears that surface later for periods before completion.
Have an advocate draft these terms. Combine them with your site checks: use the Land Site Visit Checklist and book an escorted site visit so that you see boundaries, occupants and any notices on the plot.
What about land bought at auction or sold in a hurry?
Distressed sales are where arrears show up most. A property being sold to recover rates, or by a lender, may have several years of charges outstanding, and the buyer may have little time to check. Read Buying Land or Property at Auction in Uganda before you bid, and apply the same document requests.
If you are comparing plots, browse plot listings and then ask each seller for the arrears papers up front. A seller who sends them quickly is easier to deal with. For a wider look at what to buy and where, start from land for sale in Uganda.
Frequently asked questions
Do I pay the seller's unpaid ground rent?
The debt starts as the seller's, but KCCA says a lessor can re-enter the plot over unpaid ground rent, so the risk lands on whoever holds the lease. Get a written statement and make the seller clear the balance before or at completion.
How do I check property rates arrears?
In Kampala, KCCA says a buyer can request a certificate of arrears from the seller or get one from KCCA for a fee. Outside Kampala, ask the council that serves the plot for a similar statement.
Can arrears stop the transfer?
In Kampala, KCCA says titles and documents cannot be registered without a certificate showing no rates arrears. So unpaid rates can hold up registration even if the seller and buyer agree.
Can the council really auction a property for unpaid rates?
KCCA says it can obtain a magistrate's warrant and auction the property to recover rates and interest. It can also redirect tenants' rent to itself until arrears are cleared.
What should the sale agreement say about arrears?
It should say the seller has paid all rates and ground rent to completion, will hand over the clearance papers, and will indemnify you for earlier arrears. Ask an advocate to draft it, with a retention if the figure is unknown.
Sources
- Property rates, Kampala Capital City Authority (accessed 2026-11)
- Rent and rates (ground rent), Kampala Capital City Authority (accessed 2026-11)
- Local Governments (Rating) Act, 2005, sections 33, 34 and 36, Parliament of Uganda via KCCA (accessed 2026-11)
Related guides
- Land for Sale in Uganda: Verified Plots and the Complete Buyer's Guide
- Property Rates and Ground Rent in Uganda
- Buying Land or Property at Auction in Uganda
- 10 Mistakes First-Time Land Buyers Make in Uganda
- Land Site Visit Checklist: What to Check on the Ground
- Leasehold Land in Uganda: Terms, Rent and Renewal