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  3. Building on Another Person's Land Gives No

August 7, 2026 · Birr Metrics

House of Federation Overturns Court Precedent Granting Property Rights to Builders on Others’ Land

Topics:Land·Law and policy

Summary of the Birr Metrics report

The House of Federation has cancelled two Federal Supreme Court Cassation Bench interpretations that let people who built on land registered to another person claim rights over it. A person who builds without the consent of the landholder can now claim only the cost of the construction. The case came from a family dispute in Bole.

Key points

  • The House of Federation overturned Cassation Bench interpretations under File Nos. 30101 and 36638.
  • A person who builds on another person's registered land without consent can claim construction costs but not ownership or holding rights.
  • The House approved the decision unanimously on June 6, 2026, on the recommendation of the Council of Constitutional Inquiry.
  • The ruling rests on Article 40(3) of the Constitution, under which land belongs to the state and the people.
Read the full story on Birr Metrics

Real.et analysis

Birr Metrics reports that the House of Federation has overturned two interpretations by the Federal Supreme Court Cassation Bench. Those interpretations let a person who built a house on land registered to another person claim rights over the property. Under the new ruling, a person who builds on registered land without the consent of the landholder can claim the cost of the construction. That person cannot get ownership or holding rights. The House approved the decision unanimously on June 6, 2026, on the recommendation of the Council of Constitutional Inquiry.

The case

The dispute was between two brothers over a residential plot in Bole Sub-City in Addis Ababa. One brother held the land in his name and asked the court to order the other to leave. The second brother said he had paid for and built several rooms over many years, and that this gave him ownership of them. The House ruled that the second brother may claim compensation for the eight rooms and other structures he built. It told the lower court to assess the cost. The cancelled interpretations are Cassation File Nos. 30101 and 36638. The House based its decision on Article 40(3) of the Constitution, which states that land belongs to the state and the people.

What this means for buyers

The name on the land registration decides who holds the plot. A structure built by another person does not change that. Before you buy, check these points:

  • The registered holder. Confirm at the land office that the seller is the registered landholder.
  • Other builders. Ask if a relative or a tenant paid for any part of the buildings. That person may have a money claim against the holder.
  • Written consent. If you build on land held by a family member, get a written agreement first. Without it, the most you can expect is the cost of the works.

What this means for families

Many houses in Addis Ababa grew room by room, with money from several family members. The ruling is expected to guide lower courts in these disputes. Keep receipts for materials and labour. They are the proof of a compensation claim.

Our land lease guide explains holding rights. See how to buy a house in Addis Ababa for title checks, and our article on compensation for property the state takes.

Guides on this topic

  • Land lease in Ethiopia: how urban land works and what it costsHow land lease works in Ethiopia: state ownership, Proclamation 721/2011, lease periods, Addis Ababa auctions, prices per square meter and buyer checks.
  • How to buy a house in Addis Ababa: a step-by-step checklistHow to buy a house in Addis Ababa step by step: budget, listings, title deed and lease checks, DARA notarization, taxes, registration and off-plan escrow.

Related news

  • Derg-Era Nationalised Houses and the Compensation DebtJuly 19, 2026
  • Addis Ababa Deadline for Unregistered Home BuyersJune 27, 2026
  • Sheger City Lease Demands Worry Homeowners and InvestorsMarch 15, 2026
  • Addis Ababa Raises Land Lease Benchmarks by up to 508%February 18, 2026

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