What should be done with derelict land?
The Herald
7/7/2020
Land is an immovable property. It is an asset that can be used to store value and the highest form of security of tenure that we use in Zimbabwe is a title deed.
We may use lease agreements, lease with option to purchase or agreement of sale, but ultimately the end game rests with title deeds.
But what happens when the land is deemed derelict?
People find solace upon realisation that the piece of land has title deeds. It makes a lot of business sense to sell or acquire a titled piece of land.
The financial institutions often demand collateral security when lending. Many a times, such collateral pledge is expected in the form of title deeds.
It is imperative to note that, regardless of the beauty of the structures erected on the piece of land, or the size of business generated on the same, all other improvements have no titles.
Title deeds are designated for the land on which the beautiful structure or the hugely successful business is situated.
You can only acquire insurance cover for the improvements made on that swath of land, but they have no title.
Of greater significance in relation to title deeds are those pegs that mark the extent of the land in question, the number of which is predominantly dependent on the shape of the land.
There are swathes of land in many local authorities that are disused, neglected or abandoned by the title holders. The title holder claims every right by virtue of the powers vested in him/her through the title deeds.
It implies that the property owner would have acquired the just and lawful right to the ownership of the respective immovable property and is at liberty to do as her/she pleases with the property.
However, there are a lot of unforeseen circumstances in the immovable property world.
Some acquire land for speculative motives. Land hardly depreciates in value as is the case with some movable properties such as motor vehicles or plant and equipment.
Thus, they envisage disposing of same at a much higher value at a later stage and they do not develop the land or stand. Others might have the money to purchase the land, but fail to secure enough to develop it.
At times nature takes its course, where the property holder dies and the surviving beneficiaries fail to develop the piece of land. One may be mentally incapacitated or relocate outside the country and leave behind the land unattended.
All such scenarios may create what is known as derelict land. Any land is situated in a particular local authority, be it urban or rural, as the planning authority which have jurisdiction of the area.
As a service provider, council expects rates to be paid. It is provided for in both the Urban Councils Act and the Rural District Councils Act, and that is one of the many revenue streams at their disposal to quench their financial needs.
The challenge comes when the land is deemed derelict, referring to being abandoned or unoccupied. There are many questions that arise from that consideration.
For instance, at what stage should land be designated as derelict? Who should alienate such land as derelict? Who then assumes ownership of same should if deemed derelict? What then happens to the original owner whose name the title deed is registered?
There is a piece of legislation in Zimbabwe known as the Title Registration and Derelict Land Act (Chapter 20:20) hereinafter referred to as “the Act”.
This is the Act that “provides for the registration of title in certain cases and for the disposal of certain derelict lands”.
Remember, we said derelict land refers to abandoned or neglected land. It is the same act which helps to answer some of the questions raised in the preceding paragraph.
According to the Act, land can be regarded as derelict when abandoned for a period of at least five years.
The Act chips in to help persons entitled to expropriate certain piece of land, yet they are unable to obtain title under the normal channels.
If, for instance, a local authority or other public body is owed money by the property owner of the derelict land, they have the entitlement to expropriate such land which owes rates or other dues through the High Court.
It will be naïve to assume that only the local authorities or public body are allowed to expropriate derelict land to recover costs.
The Act states that “any person who, by prescription or by virtue of any contract or transaction or in any other manner, has acquired the just and lawful right to the ownership of any immovable property in Zimbabwe registered in the name of any other person and cannot procure the registration of such property in his name in the land register . . .”
All you need to do is to acquire the just and lawful right to claim ownership of that land, either by prescription or by virtue of any contract or transaction.
You do not need to take the law into your own hands for it is not possible to change the title deeds by way of conveyancing or other means.
You must apply to the High Court to order the registration of the title to such property in your name in the land register.