Mortgages, security and the real estate business: Law N° 10/2009 on mortgages as modified in 2010, registration on eMRS, spouses and priority, enforcement by receivership and auction, insolvency, foreign lenders and foreign-currency loans, and the rules for developers, brokers and real estate investment trusts

The legal framework for security over real estate

Security over land and buildings in Rwanda rests on Law N° 10/2009 of 14/05/2009 on mortgages, published in the Official Gazette n° special of 15/05/2009, as modified and complemented by Law N° 13/2010 of 07/05/2010 (Official Gazette n° special of 14/05/2010), which rewrote the default and sale provisions and repealed the 30% cap on mortgages of a family's only livelihood property. Instructions of the Registrar General of 12/05/2020 on the management, lease, auction and acquisition of mortgages, amended on 02/07/2021, govern the mechanics of enforcement. The guide has found no later law replacing this framework; the 2009 law remains the basis on which banks lend.

The scope is broad. Article 2 defines a right to land as any right to immovable property, including ownership, leasehold and sublease, so an emphyteutic lease, the tenure most investors hold, is mortgageable, and Article 21 of Law N° 27/2021 of 10/06/2021 governing land (the Land Law) lists mortgage among the ways land rights are transferred. Two kinds of State land are treated specially. A strategic investor holding a State land lease under Article 12 of the Land Law cannot sell the land but may mortgage the land and the activities on it under its agreement with the State, and a creditor or buyer on enforcement must keep the land in the specified investment use for the rest of the term. A strategic concessionaire under Article 11 cannot mortgage the land at all, only its concession rights over the property on the land. Security over movable assets, such as equipment and receivables, is governed by Law N° 34/2013 of 24/05/2013 on security interests in movable property (Official Gazette n° 21 of 27/05/2013), which repealed Law N° 11/2009 on security interests in movable property, and registered with the same Office of the Registrar General; RDB's tariff for that registry is RWF 20,000 to register, RWF 10,000 to amend or transfer and RWF 1,000 to remove a security interest.

Creating and registering a mortgage

Registration is the step that makes a mortgage exist. Article 4 provides that a mortgage is valid when recorded in the mortgage register of the Office of the Registrar General, and that the Registrar General of companies is also the Registrar General of mortgages. In practice registration is online through RDB's Electronic Mortgage Registration System (eMRS), and is done by the lender with the written approval of the borrower, of the owner if different, and of their spouses. RDB's guide to the law describes four steps: search the property on eMRS by its Unique Parcel Identifier (UPI); submit the mortgage abstract, a valuation report by a certified valuer, the mortgage agreement and the fee payment slip; receive the registration certificate by email; and the Land Administration Information System (LAIS) automatically records a caveat on the land. The guide states that registration takes up to 24 hours and that the fees are RWF 20,000 for a new registration and RWF 10,000 for an amendment or transfer; a company borrower adds a notarised board resolution authorising the loan.

Registration has consequences for the owner. Under Article 7 neither party may exercise other rights over the secured property within the period set in the mortgage contract, and RDB's guide states that once registered the owner cannot transfer, sell, lease or donate the property without the lender's prior approval. The mortgagor must notify the lender of any change affecting the property and the Registrar General of any change to the mortgage (Article 13), the lender may vary the interest rate only on notice and as the contract allows (Article 10), a mortgage may be transferred to a new borrower at the mortgagor's written request with the lender's approval and notice to the Registrar General (Article 12), and partial releases are possible where enough of the debt has been repaid (Article 9). On full repayment the lender files the waiver online, the mortgage is deregistered and the caveat is lifted (Articles 11 and 23).

Spouses, priority and second mortgages

Rwanda's matrimonial property rules reach into every security package. Article 5 provides that a mortgage of a matrimonial home is valid only if the documents are signed by the mortgagor and the spouse living there, or there is evidence of their consensus, and makes the lender responsible for finding out whether the mortgagor has a spouse. Article 22 of the Land Law separately requires both spouses who hold land jointly to approve any transfer, even if one is not registered on the title. A lender taking security from an individual or a family company should therefore obtain spousal consent as a matter of course; a missing signature can make the mortgage unenforceable.

Mortgages rank by their order of registration (Article 8), and an owner may grant second and subsequent mortgages (Article 3). RDB's guide adds two points of practice: lenders may agree to rank equally by a pari passu agreement, and a later lender should first obtain the consent of the first-ranked lender before lending against the same property. Because the eMRS search is by UPI and the LAIS caveat is automatic, a lender's due diligence should combine an eMRS search with the land title search described in Land registration, titles and due diligence.

Enforcement: notice, receiver and auction

Enforcement is out of court, through the Registrar General. As replaced by Article 2 of Law N° 13/2010, Article 14 requires the mortgage contract to contain clauses giving the lender power to manage, lease, sell or take over the property on default and to specify the time, place and terms of sale and the procedure. On default the lender notifies the mortgagor in writing of the remedy it has chosen, with a copy to the Registrar General, and the notice is given 30 working days before action, counted from the day the Registrar General receives its copy. The notice states the amount outstanding and how the lender will proceed (Article 15).

The lender may then ask the Registrar General to appoint a receiver, who is appointed in writing with notice to both parties (Article 16). The receiver's remuneration is agreed but may not exceed 5% of the amount received (Article 17); the receiver collects the income of the property, pays the costs of managing it and applies the balance to the loan (Article 18). A sale is conducted by the receiver at market price, determined by prevailing market conditions, under auction procedures (Article 19 as replaced), and must be advertised (Article 20). The buyer takes the property with full rights and free of the mortgage (Article 20), and the lender is preferred if its bid equals the best other offer (Article 21). The mortgagor may pay off the debt at any time before the lender and a buyer agree the sale (Article 23); RDB's guide states that the borrower may not itself bid at the auction. A mortgagor who disputes the price or the contract may go to court (Articles 19 and 24).

Proceeds are applied in a fixed order (Article 22): first any interest, rents, taxes, charges or other amounts due on the property; then the expenses of the sale and the receiver's remuneration; then the first secured loan; then later mortgages in order of priority; and any balance goes to the owner. Property tax arrears therefore come out of the price before the lender is paid, which is one more reason to check tax status at the outset.

Insolvency and expropriation

Law N° 075/2021 of 06/12/2021 relating to insolvency (Official Gazette n° Special of 30/12/2021) protects secured lenders in principle. Article 12 provides that the rights of secured creditors and holders of a right of retention are not stayed by the commencement of insolvency proceedings. Where the debtor shows with its application an intention to submit a reorganisation plan, all claims, secured ones included, are stayed from the application; the plan must be submitted within three months and the stay may not exceed six months, after which, if the court has not decided, the secured creditor may enforce. Article 88 allows a secured creditor to apply to court for relief from a stay where, for example, the secured asset may lose value or deteriorate and the creditor is not compensated. The ranking and the reorganisation process are in Insolvency and restructuring.

If mortgaged land is expropriated, Article 38 of Law N° 32/2015 of 11/06/2015 requires the compensation to be paid into the account designated by the bank or financial institution holding the security, so the lender's position is preserved (Expropriation and compensation).

Foreign lenders and foreign-currency loans

No statutory bar on a foreign lender taking a Rwandan mortgage has been found, and a resident borrower may freely contract foreign-currency loans from non-resident banks, international financial institutions and other non-residents under Article 26 of Regulation N° 42/2022 of 13/04/2022 governing foreign exchange operations; banks record repayments for reporting. Registration on eMRS is by the lender, so an offshore lender needs a local agent able to file, and the mortgage contract must contain the Article 14 enforcement clauses.

Rwandan lenders face tighter rules. Directive N° 46/2026 of 08/04/2026 on lending in foreign currency of the National Bank of Rwanda (BNR) allows a foreign-currency loan only to a borrower that earns foreign currency or is authorised to transact in it, requires its foreign-currency cash flow to be at least 120% of annual debt service and repayment in the loan currency, and requires collateral from non-residents of at least 120% of the loan, or 100% where it is cash or a guarantee in the same currency; bank lending above 20% of core capital needs a BNR non-objection, given within 10 working days. A real estate developer earning rents in Rwandan francs will usually not qualify unless it holds an authorisation; a real estate company whose RDB investment certificate approves transactions in foreign currency is deemed authorised under Directive N° 4230/2025-00042 of 17/09/2025. Interest paid abroad generally bears withholding tax at 15%, with exceptions for exempt development finance institutions (Offshore loans and external borrowing).

Developers: authorisation, incentives and tax

Article 30 of Law N° 10/2012 of 02/05/2012 governing urban planning and building in Rwanda subjects real estate development operations to an authorisation on conditions set by Prime Minister's Order; Prime Minister's Order N° 114/03 of 19/06/2015 determining conditions for authorisation to carry out real estate development operations is listed by the Ministry of Infrastructure as current, although the guide has not verified its text. Under Law N° 006/2021 of 05/02/2021 on Investment Promotion and Facilitation, affordable housing is a priority sector and qualifying registered investors developing it pay corporate income tax at 15%; mortgage finance is among the financial services eligible for the same rate; and 50% first-year accelerated depreciation for construction projects requires an investment of at least USD 1,800,000.

On exit, a registered investor's exemption from capital gains tax does not extend to income from selling commercial immovable property, and the District charges tax on the sale of immovable property at 2% of the sale value for an income-tax-registered seller of commercial property, or 2.5% where the seller is unregistered, on the value above RWF 5,000,000 (Article 17 of Law N° 048/2023 of 05/09/2023). Transfer and title registration themselves are free of fees. The details are in Land tax, property tax and transfer costs and Investment incentives.

Brokers, property managers and anti-money laundering

Real estate brokerage was unregulated as at 10 October 2026. In July 2026 the National Land Authority (NLA), with the real estate brokers' association (RWAREB) and the Rwanda Housing Authority, consulted on draft real estate brokerage and property management regulations that would introduce certification and licensing, sanctions for unlicensed operators and reference numbers for listed properties, with a September 2026 target; they had not been seen in the Official Gazette. On 28 September 2026 the press reported that the Government was moving to establish a professional body for real estate practitioners.

Anti-money laundering rules already apply. Real estate agents are reporting persons under Article 8 of Law N° 001/2025 of 22/01/2025 on the prevention and punishment of money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction, and Article 15 of Regulations N° 002/FIC/2026 of 22/06/2026 of the Financial Intelligence Centre (FIC) requires customer due diligence on all real estate transactions, covering both buyer and seller. Suspicious transactions must be reported to the FIC within 24 hours, and records kept for 10 years. A foreign buyer should expect agents, notaries and banks to ask for the source of funds and the beneficial owners of a corporate purchaser (Anti-money laundering and sanctions compliance).

Real estate investment trusts and funds

Collective real estate investment is regulated by the Capital Market Authority (CMA). Its Guidelines No. 21 of 05/07/2016 governing the development of real estate investment trusts (D-REITs), published in the Official Gazette no. 34bis of 22/08/2016, allow development REITs to be offered to professional investors only, with a minimum investment parcel of RWF 50 million, capital of at least RWF 1 billion, at least seven investors and a 25% free float; at least 30% of assets must be in development within a year, borrowing is capped at 60% of assets (75% for six months with approval), and leasehold property must have at least 25 years unexpired. Collective investment schemes generally are governed by Law N° 062/2021 of 14/10/2021. The guide has not verified separate rules for income REITs or the tax treatment of REITs; fund structures and the Kigali International Financial Centre (KIFC) incentives are discussed in Capital markets, project finance and KIFC funds.

Taking and enforcing a mortgage over a Rwandan property

1. SearchSearch the property by UPI on eMRS for existing mortgages and on the land register for the title, caveats and remaining lease term; check property tax and land tax status.
2. ConsentsIdentify the owner, any co-holders and spouses (Article 5 of Law N° 10/2009; Article 22 of the Land Law), any first-ranked lender and, for State land leased for strategic investment, the terms of the investor's agreement with the State.
3. DocumentSign a mortgage contract containing the Article 14 clauses on management, lease, sale and takeover and on the time, place and terms of sale; obtain a certified valuation and, for a company, a notarised board resolution.
4. RegisterFile the notarised abstract, valuation, contract and fee on eMRS; the certificate issues by email and LAIS records a caveat. Unregistered, the mortgage is not valid.
5. Default noticeOn default, serve written notice of the chosen remedy with a copy to the Registrar General, and wait 30 working days from the Registrar General's receipt.
6. Receiver and auctionAsk the Registrar General to appoint a receiver; the receiver advertises and sells by auction at market price under the Registrar General's instructions.
7. Distribute and dischargeApply the proceeds in the Article 22 order, return any balance to the owner and deregister the mortgage so the purchaser takes a clean title.