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land ownership in Mozambique
Land tenure in Mozambique does not take the form of ownership, but of use rights. In the case of small-scale farmers, that right is free of charge. A 1997 land law acknowledges that land tenure rights of local communities and of individuals who, in good faith, have occupied the land for at least ten years.

Companies and individuals wishing to acquire land for commercial purposes must first hold consultations with the local community and obtain a written opinion from the district administrator. Only then can they obtain authorization to use the land.

While the legal system recognizes and protects property rights to buildings and movable property, private ownership of land is, however, not allowed in Mozambique. The government grants land-use concessions for periods of up to 50 years, with options to renew, and has at times granted overlapping land concessions.

Foreigners are able to apply for a land concession if they have a registered property in Mozambique. The government hopes that by allowing private land concessions, there will be increased investment in production and employment creation in the rural areas of the country.

legal framework for Fractional Ownership Rights
A recent development in Mozambique centers around Decree 39/2007 of 24 August which deals with the Regulations on the Right of Periodic Habitation.

This law regulates and entrenches multiple-ownership property rights for the first time in Mozambique. As a properly accredited scheme, purchasers of fractional ownership rights in Tartaruga Bay are assured that:

  • The project holds legal land title

  • The right purchased is:

    • properly constituted and registered in terms of Mozambican law

    • can be legally transferred and encumbered;

  • The project is:

    • recognized by the regulating authorities

    • properly established and compliant in terms of Mozambican law;

  • The purchaser of such a right:

    • enjoys certain immutable rights in terms of disclosure

    • has right of withdrawal

    • has certain legal obligations to perform. These obligations are imposed both on the developer and the purchaser.

This law provides for the constitution of fractional ownership schemes by public deed in the form of the Articles of Association of the company creating these rights. In addition to the normal articles contained in this sort of document, the elements of the fractional ownership scheme must be set out together with the relationships of company shares to the use rights created.

 

Furthermore, this decree stipulates that the exercise and enjoyment of the use rights over the resort by the right-holder must be governed by the terms and conditions of a Use and Services Agreement and Resort Rules that must be registered along with the Articles of Association of the company and acceded to by each right-holder.

The law also provides for the accreditation of the scheme by the Ministry of Tourism and the issuance of an official Real Property Registration Certificate to the right-holder in respect of each Fractional Ownership Right purchased.

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