Freehold and Leasehold Titles

According to the National Land Code, 1965 (Act 56 of 1965), Section 40 asserts that all State land belongs to the State authority.

When a plot of land is disposed by the authority to an individual indefinitely it becomes freehold. This is seen when developers purchase land to build freehold bungalows, private housing and condominiums.

Leasehold on the other hand, is when State land is released to an individual for a definite number of years not exceeding 999. Once the term expires, the land ownership reverts to the State authority.

As freehold land is owned by the developer, the property that is built on it facilitates the transfer of the land to the buyer of the property if it is of a bungalow/terraced house type.

Leasehold

Leasehold tenures usually last 30, 60, 99 or in some cases, 999 years. There are obviously restrictions to a leasehold land as things like land cultivation may be effectively barred by environmental and town planners.

The owner of the land has a duty to care for the land as defined by the land legislation and may be responsible for developing some property and maintaining it.

Freehold

Development on freehold land is only limited by environmental and town planning controllers.

The owner is expected to follow common law and where relevant, laws laid down by the Environment Protection Acts or equivalent in the governing of the land.

Freeholds are indisputably the title that allows the most control and offers the highest level of security.