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VELMA Law
VELMA Law, Dar es Salaam Tanzanian Law Firm
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With effect from 8 February 2018 there are new constraints for mortgage finance in Tanzania (as per Part IV Written Laws (Miscellaneous Amendments) Act 2018).
In short, finance from local or foreign banks (or financial institutions) obtained by mortgages of:
- any Tanzanian land, must be invested in Tanzania;
- any un/under developed Tanzanian land, must be used to develop that specific land; and
- any developed Tanzanian land, can be used to further develop that specific land, or for investments, or for other purposes.
Breach of this is a breach of the Right of Occupancy.
Please contact us if you have any comments or questions.
NOTE: This has been prepared for general information purposes for any interested persons, it is not comprehensive information on the subject matter and it should not be regarded as legal advice.