STATUTORY INSTRUMENTS

SUPPLEMENT No. 2

13th January, 2012

STATUTORY INSTRUMENTS SUPPLEMENT

to The Uganda Gazette No. 2 Volume CV dated 13th January, 2012
Printed by UPPC, Entebbe, by Order of the Government.

S T A T U T O R Y

I N S T R U M E N T S

2012 No. 2.
THE MORTGAGE REGULATIONS, 2012
_________
Regulation

ARRANGEMENT OF REGULATIONS

1. Title
2. Interpretation
3.
4.
5.
6.
7.

8.
9.
10.
11.
12.
13.

PART IPRELIMINARY

PART IICONDUCT OF MORTGAGE BUSINESS

Ascertaining matrimonial status of the applicant

Mortgagee not to disclose information about the mortgagor to third parties.
Right to tack to be specified in the mortgage instrument.
Notices to be sent to address of mortgagor.
Mortgagor to notify mortgagee of change in address.
PART IIISALE OF MORTGAGED PROPERTY

Sale by mortgagee to be by public auction.

Sale by decree of court
Sale by private treaty.
Valuation of mortgaged property.
Mortgagor to give access for valuation and inspection.
Adjournment or stoppage of sale.

Regulation

14. Deposit by purchaser and resale on default.

15. Vesting of property after sale.
16. Sale not to be vitiated by irregularity.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.

PART IVMORTGAGE FORMS

Mortgage instrument.
Declaration of marital status
Spousal consent
Release of mortgage.
Transfer of mortgage.
Notice of default.
Appointment of receiver.
Leasing of mortgaged property.
Mortgagees power of sale of mortgaged property.
Taking possession of the mortgaged property.
Withdrawing from possession.
Variation of forms.
SCHEDULES

Schedule 1 Currency point

Schedule 2 Forms

S T A T U T O R Y

I N S T R U M E N T S

2012 No. 2.
The Mortgage Regulations, 2012.
(under section 41 of the Mortgage Act, 2009, Act No. 8 of 2009)

IN EXERCISE of the powers conferred upon the Minister responsible for

lands by section 41 of the Mortgage Act, 2009 and in consultation with the
Central Bank these Regulations are made this 9th day of September, 2011.
PART IPRELIMINARY
1. Title.
These Regulations may be cited as the Mortgage Regulations, 2012.
2.

Interpretation.
(1) In these Regulations, unless the context otherwise requires
Act means the Mortgage Act, 2009;
agent means a person appointed by a principal to do any act for
that principal or to represent the principal in dealing with a
third person;
currency point has the value assigned to it in Schedule 1;
mortgagee means a person in whose favour a mortgage is created
or subsists; and includes any person deriving title under the
original mortgagee;
mortgagor means a person who has mortgaged land or an interest
in land; and includes any person from time to time deriving
title under the original mortgagor or entitled to redeem the
mortgage according to his or her estate, interest or right in the
mortgaged property;
principal means a person who appoints an agent to do any act for him
or her or to represent him or her in dealing with a third person;
5

spouse means a husband or wife recognized by the laws of

Uganda.
(2) A reference in the Act to officer of Government shall be taken
to mean a public officer on or above the salary scale of U 5.
PART IICONDUCT OF MORTGAGE BUSINESS
3.

Ascertaining marital status of applicant.

(1) For the purpose of sections 5 and 6 of the Act and for the
purposes of establishing whether an applicant for a mortgage has a
spouse, a mortgagee shall require the applicant to state whether he or she
is married and
(a) where the applicant for a mortgage states that he or she is
married, he or she shall make a statutory declaration to that
effect stating the name and address of his or her spouse; or
(b) where the applicant states that he or she is not married, the
applicant shall state so in a statutory declaration.
(2) Where a person applying for a mortgage states that he or she is
married, under sub regulation (1) (a) the spouse of that person shall also
make a statutory declaration to that effect.
(3) Where a person declares that he or she is married for the purposes
of this regulation, that person shall attach a certified copy of the marriage
certificate or any other evidence of the marriage to the declaration.
4.

Mortgagee not to disclose information about the mortgagor to

third parties.
(1) A mortgagee shall not disclose any information about the
mortgagor in respect of the mortgage to a third party without the written
consent of the mortgagor.
(2) Sub regulation (1) shall not apply to information required to be
disclosed by law or court.
(3) Notwithstanding sub-regulation (1) a mortgagee shall disclose
information about the mortgagor to
6

(a) a surety of the mortgagor;

(b) a donor of a powers of attorney;
(c) an independent person under section 6 of the Act;
(d) any person with proof of legal or beneficial interest in the
property of the mortgagor.
(4) A mortgagee who contravenes sub regulation (1) commits an
offence and is liable on conviction to a fine not exceeding seventy two
currency points or imprisonment not exceeding three years or both.
5.

Right to tack to be clearly specified in mortgage instrument.

(1) Where a mortgage includes a right to tack, the right shall be
clearly and prominently specified in the mortgage instrument.
(2) For the purposes of sub regulation (1) the cover or first page of the
mortgage instrument shall be clearly marked mortgage with right to tack.
(3) The registrar shall when recording the mortgage specify the
right to tack in the register.
6.

Address of service of mortgagor.

(1) Every notice or any other document required by the Act or these
Regulations to be given to a mortgagor shall be sent to the address given
by the mortgagor at the time of entering into the mortgage.
(2) Where the mortgagor does not give an address at the time of
entering into the mortgage or at any time after, the notice or any other
document shall be published in a newspaper of wide circulation in the
area where the property is situated.
7.

Mortgagor to notify mortgagee of change in address

(1) A mortgagor shall notify the mortgagee in writing of any change
in the address of the mortgagor.
(2) An act or proceeding taken by the mortgagee shall not be
affected by the mortgagors claim of a subsequent change in address that
was not notified to the mortgagee.
7

PART IIISALE OF MORTGAGED PROPERTY.

8.

Sale by mortgagee to be by public auction.

(1) A mortgagee exercising a power of sale under the Act shall
subject to the Act and these Regulations, sell the mortgaged property by
public auction.
(2) After giving the notice required by section 26 of the Act, the
mortgagee shall give notice of the public auction by advertising the
intended sale in a newspaper of wide circulation.
(3) The advertisement in sub regulation (2) shall include a coloured
picture of the mortgaged property and specify
(a) the time and place of sale; and
(b) the time at which the property may be viewed by the public.
(4) A sale shall not take place before the expiration of twenty one
working days from the date of service of the notice as specified in
section 26 of the Act.
(5) A person who contravenes this regulation commits an offence
and is liable on conviction to a fine not exceeding seventy two currency
points or imprisonment not exceeding three years or both.
9. Sale by order of court
Where the court makes an order for sale of mortgaged property, the sale
shall be conducted in the manner directed by court.
10. Sale by private treaty
(1) A mortgagee exercising a power of sale under the Act may, with
the consent of the mortgagor, sell the mortgaged property by private
treaty.
(2) For purposes of sub-regulation (1) consent of the mortgagor
shall, subject to section 26 of the Act, be by written notice.
8

(3) For the avoidance of doubt, a mortgagors consent shall not be

retrospective.
11. Valuation of mortgaged property
(1) The mortgagee shall before selling the property, value the
property to ascertain the current market value and the forced sale value
of the property.
(2) For the purposes of sub regulation (1), the valuation report shall
not be made more than six months before the date of sale.
(3) The valuation report shall contain the current pictures of the
property, including
(a) the front view of the property;
(b) the side view of the property; and
(c) the detailed description of the property.
12. Mortgagor to give access for valuation and inspection.
(1) Where the mortgagor is in possession of the mortgaged property
at the time of sale, the mortgagor shall, upon notice, give access to the
mortgaged property to
(a) the person authorized by the mortgagee to value the property;
(b) persons inspecting the property after advertisement for the
purposes of purchase.
(2) A person inspecting the property for the purposes of purchase
shall be accompanied by the mortgagee or his or her representative.
(3) Where the mortgagor refuses to give access to mortgaged
property, the mortgagee shall take possession of the property for the
purposes of valuation and inspection at the cost of the mortgagor.
9

13. Adjournment or stoppage of sale.

(1) The court may on the application of the mortgagor, spouse,
agent of the mortgagor or any other interested party and for reasonable
cause, adjourn a sale by public auction to a specified date and time upon
payment of a security deposit of 30% of the forced sale value of the
mortgaged property or outstanding amount.
(2) The person conducting the sale may, upon notifying the
mortgagor, mortgagee and bidders in writing, adjourn the sale to a
specified date and time.
(3) The person conducting the sale shall specify the reason for
adjourning the sale under sub regulation (2).
(4) Where a sale is stopped or adjourned at the request of the mortgagor,
an agent of the mortgagor, the spouse of the mortgagor or any other interested
party, the mortgagor, agent or spouse of the mortgagor or that interested party
shall, at the time of stopping or adjourning the sale, pay to the person
conducting the sale, a security deposit of 30% of the forced sale value of the
mortgaged property or the outstanding amount, whichever is higher.
(5) Where the sale is stopped or adjourned at the request of the
mortgagor for the purposes of redemption, the mortgagor shall at the
time of stopping or adjourning the sale pay a security deposit of 50% of
the outstanding amount.
(6) Notwithstanding sub-regulation (1) where the application is by
the spouse of a mortgagor, the court shall determine whether that spouse
shall pay the thirty percent security deposit.
(7) Where a sale is adjourned under this regulation for a period
longer than fourteen days, a fresh public notice shall be given in
accordance with regulation 8 unless the mortgagor consents to waive it.
(8) A sale shall be stopped where before the lot is called
(a) the mortgagor pays to the person conducting the auction, all
the money owing to the mortgagee, including the costs of the
sale; or
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(b) where the person conducting the sale is satisfied that all the
money owing to the mortgagee, including the costs of the sale
has been paid into the court which ordered the sale.
14. Deposit by purchaser and resale on default.
(1) At the fall of the hammer, the person declared purchaser shall
within one working day, pay a deposit of at least thirty percent of the
purchase amount to the officer conducting the sale.
(2) Where the purchaser defaults in paying the deposit, the property
shall be resold.
(3) A purchaser who pays the deposit in accordance with this
regulation shall pay the balance to the officer who conducted the sale
within twenty one working days.
(4) Where the balance is not paid within the time specified in sub
regulation (3), the property may be sold to the second highest bidder or
re-advertised in accordance with these Regulations.
(5) Where the purchaser does not pay the balance in accordance
with this regulation, the deposit shall be refunded to him or her less the
costs incurred by the officer who conducted the sale.
15. Transfer of property after sale.
After the payment of the full purchase price, the mortgagee shall execute
instruments of transfer of the property in name of the purchaser or the
person named by the purchaser.
16. Sale not to be vitiated by irregularity.
(1) An irregularity in conducting a sale by public auction shall not
vitiate the sale, but any person suffering loss or injury as a result of the
irregularity may bring an action for damages or compensation against
the mortgagee or the person who conducted the sale.
(2) Where a person suffering loss or injury as a result of irregularity
in conducting a sale by public auction is the purchaser, that person may
bring an action for declaration of ownership.
11

(3) Any person suffering loss as a result of irregularity by private

treaty may sue the mortgagee for breach of contract.
PART IVMORTGAGE FORMS
17. Mortgage instrument
The mortgage instrument shall be in Form 1 in Schedule 2.
18. Declaration of marital status
The declaration of marital status required by regulation 3 shall conform
to the Statutory Declarations Act and shall contain a declaration
regarding the following particulars
(a) sex, citizenship and age;
(b) marital status
(c) if married, the nature and type of marriage;
(d) if married, the name, age, citizenship and address of the
spouse;
(e) date, month and year of marriage; and
(f) number and age of children with the spouse, if any.
19. Spousal consent for mortgage of a matrimonial home or
customary land
Subject to sections 5 and 7(6) of the Act, before granting a mortgage the
mortgagee shall require the consent of the spouse and the children in
Form 2 in Schedule 2.
20. Release of mortgage
A release or discharge of a mortgage by the mortgagee shall be in Form
3 in Schedule 2.
21. Transfer of mortgage.
(1) A transfer of a mortgage under the Act shall be in Form 4 in
Schedule 2.
12

(2) A transfer of mortgaged land by a mortgagee to a purchaser

after exercising the power of sale in accordance with section 28 (3) of
the Act shall be in Form 5 in Schedule 2.
22. Notice of default.
A notice of default to the mortgagor shall be in Form 6 in Schedule 2.
23. Notice of appointment of receiver.
The notice to the mortgagor for the appointment of a receiver shall be in
Form 7 in Schedule 2.
24. Leasing of mortgaged property.
A mortgagee shall, before leasing mortgaged property in accordance
with the Act, give notice to the mortgagor in Form 8 in Schedule 2.
25. Mortgagees power of sale of mortgaged property.
Before exercising the power to sale under section 26 of the Act, the
mortgagee shall give notice to the mortgagor in Form 9 in Schedule 2.
26. Taking possession of the mortgaged land
Before taking possession of the mortgaged land under section 24 of the
Act, the mortgagee shall give notice to the mortgagor in Form 10 in
Schedule 2.
27. Withdrawing from possession
The notice by the mortgagee to withdraw from possession of the
mortgaged land shall be in Form 11 in Schedule 2.
28. Variation of forms.
(1) A form, instrument or document under the Act or these
Regulations may be modified or altered to suit the circumstances of each
case.
(2) A form, instrument or document under the Act or these
Regulations is not invalidated by a deviation or modification which does
not affect the substance of the form, instrument or document.
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SCHEDULE 1

Currency point
s.2, Reg .2

One currency point is equivalent to twenty thousand shillings.

14

SCHEDULE 2
FORMS
Form 1
Mortgage Instrument
s.3, Reg 17
THE REPUBLIC OF UGANDA
THE MORTGAGE ACT, 2009 (ACT No.8 of 2009)
THE MORTGAGE REGULATIONS, 2012
Mortgage Instrument.
Freehold Register Vol.________Fol._______
Leasehold Vol. _____________ Fol._______
Mailo Block________________Plot_______
Customary _________________PIN_______
I, .............................................................................................being the
registered proprietor of the land described above, in consideration of the sum
of shs. .................. this day lent to me by..............................., (in this Instrument
called the mortgagee) agree with the mortgagee as follows:
(1)

to pay to the mortgagee or his or her transferees the principal sum of

shs.................................... on the ............day of...................., 20 ..............

(2)

to pay to the mortgagee or his or her transferees so long as the principal

sum or any part of it remains unpaid, interest on the sum or on so much
of it as shall for the time being remains unpaid at the rate of ...............
per cent per year by equal payments on the ................ day of
..................and on the day of in every year.

(3)

to insure the property in the name of the mortgagee.

(4)

(here set forth any special covenants relating to the property

mortgaged)..................................................................................................
...................................................................................................................
.......................................................................................

15

And to secure the payment of the principal sum and interest, I mortgage to the
mortgagee all my property and interest in the land described in this Instrument.
Dated this ______ day of _______________, 20 ____.

Signed by Mortgagor

In the presence of

Name

Name.

Address.

Address.

Signature...

Signature .

Signed by Mortgagee

In the presence of

Name

Name.

Address.

Address.

Signature...

Signature .

16

Form 2
Consent of spouse or child
s.5 , 7(6), Reg 19
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

The Mortgage Regulations, 2012
CONSENT BY THE SPOUSE/ CHILD*
1.

Location of land subject to consent:

a)

Village/Zone.

b)

Parish/Ward.

c)

Sub-county/Town.

d)

County/Division..

e)

District.

2.

Approximate area (ha)

3.

Where the land is registered, state

4.

a)

Freehold Register Vol.________Fol.___________

b)

Leasehold Vol. _____________ Fol.___________

c)

Mailo Block________________Plot___________

d)

Customary _________________PIN___________

Use or occupation of land (e.g.farming, housing)

5.

State the nature of the transaction

17

6.

I/We being the spouse(s) /child(ren)* of the owner of the land described
in this Instrument, and forming part of family land which is subject to
section 39 of the Land Act grant consent/do not grant consent to the
transaction.*

7.

Reasons for refusal

Signed by Spouse(s) /Child(ren)* of the mortgagor

Name
Address
Signature

In the presence of
Name.................................................................................................... (Witness)
Designation..........................................................................................................
Address...............................................................................................................
Signature..............................................................................................................
*delete whichever is not applicable

18

Form 3
Release of mortgage
s.15, Reg 20
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

The Mortgage Regulations, 2012
RELEASE OF MORTGAGE
Freehold Register Vol.________Fol._______
Leasehold Vol. _____________ Fol._______
Mailo Block________________Plot_______
Customary _________________PIN_______
I, of P.O. Box
being the mortgagee of property comprised in
., the mortgage registered on the
day of 20.., under
instrument No. .. release and discharge the
registered proprietor and the land described in this instrument from the
obligations or conditions under the mortgage.
Dated thisday of .20.

Signed by Mortgagee

Name
Address
Signature.

19

Form 4
Transfer of mortgage.
s.17, Reg.21
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

The Mortgage Regulations, 2012
TRANSFER OF MORTGAGE
Freehold Register Vol.________Fol._______
Leasehold Vol. _____________ Fol._______
Mailo Block________________Plot_______
Customary _________________PIN_______
I, .., of P.O. Box
............... being the mortgagee of land described in this
instrument and registered under instrument No.,
transfer the mortgage and all my interests, rights and obligations under the
mortgage to of P. O. Box
in consideration of the sum of .. receipt of
which I acknowledge.

Dated thisday of .20.

Signed by Mortgagee

Name
Address
Signature.

20

Form 5
Transfer of mortgaged land.
s.17, Reg.21
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

The Mortgage Regulations, 2012
TRANSFER OF MORTGAGED LAND
(Under section 28 (3))
To
The Registrar/Recorder
Freehold Register Vol.________Fol._______
Leasehold Vol. _____________ Fol._______
Mailo Block________________Plot_______
Customary _________________PIN_______
In accordance with section 28(3) of the Mortgage Act, 2009, I,
.., of P.O. Box ..............
being the mortgagee of land described in this instrument and registered under
instrument No., transfer the land described
in this instrument and all my interests, rights and obligations under that land to
of P.O.Box
in consideration of the sum of .. receipt of
which I acknowledge.
Dated thisday of .20.
Signed by Mortgagee

Name
Address
Signature.

21

Form 6
Notice of default.
s.19, Reg 22.
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

The Mortgage Regulations, 2012
NOTICE OF DEFAULT
To

.
.
.....
(insert full address of mortgagor)

TAKE NOTICE that you have defaulted on your obligations under the
Mortgage executed on the .day of20.. as follows:
(state the nature of default)

TAKE FURTHER NOTICE that in accordance with the Mortgage you are
required:
(a)

to pay the sum of

(insert amount owing) or

(b)

to
(state action required of mortgagor)

Within 21 working days from the date of this notice in order to rectify the
default.
TAKE FURTHER NOTICE that if the default is not remedied within the time
stated in this notice, the mortgagee shall be entitled and will proceed to exercise
any of the following remedies;
(a)

appointing a receiver of the mortgaged land;

22

(b)

leasing/subleasing the mortgaged land;

(c)

entering into possession of the mortgaged land; or

(d)

Selling the mortgaged land.

Dated this ..................... day of ..........20..........

Name of Mortgagee
Address
Signature.

23

Form 7
Notice of intention to appoint a receiver.
s.22, Reg23
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

Mortgage Regulations, 2012
NOTICE OF APPOINTMENT OF A RECEIVER

To

.
.
.....
(insert full address of the Mortgagor)

TAKE NOTICE that in accordance with section 22 of the Mortgage Act, 2009,
the Mortgagee shall after 15 days from the date of receipt of this notice, appoint
a receiver in respect of the mortgaged property comprised in
unless the sum of is
paid in full to the Mortgagee within that time.

Dated this ............... day of .........20..........

Name
Address
Signature.

24

Form 8
Notice of intention to lease the mortgaged property.
s.23 Reg24
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

THE MORTGAGE REGULATIONS, 2012
NOTICE OF LEASE OF MORTGAGED PROPERTY

To

.
.
.....
(insert full address of the mortgagor)

TAKE NOTICE that in accordance with section 23 of the Mortgage Act, 2009,
the Mortgagee shall after 15 days from the date of receipt of this notice,
proceed
to
lease
the
mortgaged
property
comprised
in
.unless the sum of
is paid in full to the Mortgagee within that time.

Dated this ............... day of ..........20..........

Name
Address
Signature.

25

Form 9
Sale of mortgaged property.
S.26, Reg 25
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

THE MORTGAGE REGULATIONS, 2012
NOTICE OF SALE OF MORTGAGED PROPERTY
To

.
.
.....
(insert full address of the Mortgagor)

TAKE NOTICE that in accordance with section 26 of the Mortgage Act, 2009,
the Mortgagee shall after 21 working days from the date of receipt of this
notice, proceed to sell the mortgaged property comprised in
(Insert the description of land and
mortgage instrument) unless the sum of ..is paid in
full to the Mortgagee within that time.

Dated this ............... day of ..........20..........

Name
Address
Signature.

26

Form 10
Taking possession
s.24 Reg 26
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

THE MORTGAGE REGULATIONS, 2012
NOTICE BY A MORTGAGEE TO TAKE POSSESSION
To

.
.
.....
(insert full address of the Mortgagor)

TAKE NOTICE that ..(insert name of

mortgagee) shall after five working days from the date of this notice, proceed
to exercise the mortgagee's power to take possession of the mortgaged
property comprised in in accordance with section
24 of the Mortgage Act, 2009

Dated this ............... day of ..........20..........

Name of Mortgagee
Address
Signature.

27

Form 11
Withdrawing from possession
s.25, Reg. 27.
THE REPUBLIC OF UGANDA

The Mortgage Act, 2009 (Act No.8 of 2009)

THE MORTGAGE REGULATIONS, 2012
NOTICE BY THE MORTGAGEE TO WITHDRAW FROM POSSESSION

To

.
.
.....
(insert full address of the Mortgagor)

TAKE NOTICE that .. shall on .,

withdraw from possession of the mortgaged property comprised in
, in accordance with section 25 of the Mortgage
Act, 2009.

Dated at .... this ............... day of ..........20..........

Name
Address
Signature.

28

DAUDI MIGEREKO,
Minister of Lands, Housing and Urban Development.

29