The Property Banks Buyers Guide to The Gambia
Just as in European Law it is always
recommended that a purchaser/seller of property/land instruct a
reputable solicitor/conveyancer to act for them so it is equally
advisable in The Gambia. If necessary we have a firm of highly
qualified Gambian Lawyers/Barristers (and part-time Magistrates),
fluent in English and other languages, who will be delighted to act
for you in any land transactions you wish to undertake.
Land in the Gambia is registered at the Property Registry (an
organisation just like the English Land Registry), where you can
confirm immediately whether the seller owns the property free of any
liens and encumbrances. Just as in Europe, however, there is still
plenty of land/property which remains as yet unregistered. To avoid
any ensuing confusion it is necessary for European
purchasers/sellers to understand the difference between the terms
freehold and leasehold used both there and in Gambia. These terms
have very different implications in Gambia to those in Europe. In
Gambia there is no such thing as absolute ownership of land and
property. This is because all the land is ultimately owned by the
Government and is leased to any private purchaser for a period of 99
years but this confusingly DOES NOT constitute leasehold land. This
land/property can be either leasehold or freehold depending on
whether or not it has been registered at the Property Registry. If
it is unregistered it has a freehold status, whereas registered
land/property is denoted leasehold. It is important to register
previously freehold land/property as leasehold at the Property
Registry during the purchasing process thus documenting your
unequivocal ownership of the same
Conveyancing Process
Unless an immediate cash payment is made in full, the conveyancing
process. is conducted by a private contract being drawn up by the
respective lawyers determining the property, purchase price, form of
payment, date of completion, date of possession etc. Just as in
European law a deposit, usually 10% of the purchase price, is paid
on the signing of the Contract for a standard completion period
within approximately 30 days.
On payment of the balance of the purchase price the seller will
issue a public deed of conveyance to the purchaser, free of liens
and encumbrances. This deed is issued and passed to the Tax Office
to be assessed for Capital Gains Tax and Stamp Duty and then sent to
the Property Registry for formal registration.
Costs Involved in Property/Land Ownership in The Gambia
The purchase price of the property or land as with most conveyancing
transactions is dependant upon many factors, the most prevalent
being location, size and quality of the property/land being
tendered. .
There are yearly payments due both for land rent and local rates.
Land rent is a minimal sum which is indicated on the lease document
Other Costs Involved in Property Purchase
As with most conveyancing transactions the purchase price is
dependant upon a number of factors predominantly location, size and
quality of the property/land being tendered.
There are annual payments for land rent and local taxes to be made.
The land rent is a minimal fee and indicated on the lease document
where the property is purchased as leasehold land.
Local rates are based on the rateable value of the land assessed by
the Tax Office. The rateable value accounts for both the land and
building value dependant upon type, location and use class. When
this value is decided the Area Council determines the percentage to
be charged for local rates. These rates are also minimal. .
Taxes Involved in Land/Property Purchase
· Alkali Tax
· Municipal Tax
· Income Tax
General Summary of Fee Structure
Total official costs involved in purchasing property should be
around 1%.
Lawyer's fees - approx.10% of the selling price (dependant upon the
solicitor's set fees).
Agents are paid by the seller unless otherwise agreed (approx. up to
10% of the purchase price)