Abstract
This study was conducted in Central Uganda with the research entitled 'A critical analysis
of the impact of mortgage transaction on Uganda's development. Uganda economy is
smallholder agro-based employing over 80% of the population which is mostly rural.
Women contribute the bulk (over 70%) of the agricultural labour force. Traditionally
proceeds from these activities mostly accrue to men as they perceive themselves as
owners of the land which women cultivate and as heads of households. On the other
hand, a substantial proportion of men engage in either the informal self - employment or
as wage earners in urban centres. This situation notwithstanding, the changing trends
such as rapid urbanization, poverty and increasing number of femaleheaded households
has also contributed to an increasing number of women joining the commercial sector
both formal and informal. Currently the proportion of women in the informal sector
particularly in urban centres is almost the same as that of men. An increasing number of
women are involved in trade, real estate and service sector; yet, the chances of accessing
credit both in the formal banking and the informal sectors is premised on possessing
tangible collateral in form of immovable and/or movable property. Mortgaging enables the
individual property owner to raise other forms of capital mainly credit to undertake or
continue with other economic activities because of its impact on capital accumulation
(Mugume: 2004). Access to formal credit is premised on the existence of negotiable
security and availability of a reliable stream of income to service the loan. In Uganda's
context, the most suitable negotiable security is a title deed arising out of registered land
Table of contents
Declaration ___________________________ ii
Approval iii
Dedication iv
Acknowledgement v
n~e~oo~~ ~
List of Cases viii
Statutes ix
Abstract x
Abbreviations/ Acronyms xi
CHAPTER ONE 1
INTRODUCTION TO THE STUDY 1
1.0 Introduction 1
1.1 Background of the Study 1
1.2 Statement of the Problem 5
1.3 Purpose of the Study 7
1.4 Objectives of the Study 7
1.5 Research Questions 7
1.6 Scope of the Study 8
1. 7 Significance of the Study 8
1.8 Methodology 8
1.9 Literature Review 9
CHAPTER TWO 13
NATURE AND REQUIREMENTS FOR MORTGAGES IN UGANDA 13
2.0 Introduction 13
2.1 Nature of the mortgage 13
2.2 Mortgage requirements 15
vi
2.3 Creation of mortgages _____________________ 15
2.4 Registered/ legal mortgage 16
2.5 Equitable Mortgage 17
2.6 Creating Equitable Mortgages 17
2.7 Remedies of a mortgage. 19
2.7.1 Covenants to be implied in every mortgage. 19
2.7.2 Remedies upon breach of covenant 20
2.8 Remedies of an Equitable Mortgagee 24
CHAPTER THREE 26
NECESSITIES AND RIGHTS OF THE PARTIES INVOLVED IN MORTGAGE TRANSACTION IN
UGANDA 26
3.1 Risks involved with customary mortgages _______________ 26
3.2 Use of Customary Land as Security to acquire a Mortgage in Uganda 26
3.3 Registration mortgage under customary land 27
3.4 Remedies of mortgagee of customary land and tenancy by occupancy 28
3.5 Equity protection of a mortgagor 29
CHAPTER FOUR 33
FINDINGS 33
4.1 Impact of Mortgaging to Uganda's economy 33
CHAPTER FIVE 37
CONCLUSION AND RECOMMENDATIONS 37
5.1 Conclusion 37
5.2 Recommendations 38
