9 Legal Steps For Buying Land In Kenya

9 Legal Steps For Buying Land In Kenya

Everyone hopes to own a piece of land somewhere. It's the most valuable fixed asset that you could possibly own today. However, if you are planning to buy a piece of land anywhere in Kenya, there are certain important procedures which you should follow. Here are the legal steps to purchase land in Kenya:

1. Searches and Inspection of the Title: Once you identify land, it's always recommended that you visit the lands registry to conduct a search of the parcel in question. You will need a copy of the land title deed from the seller to facilitate the search. This process normally takes three days to get the results of the real owner of the land and check for any cautions put against the land.

   

2. Preparation of Offers and Price Negotiation: Once the buyer is satisfied with the search results presented by their advocates from the lands registry and the company registry, they will instruct their advocate to prepare an offer. The advocate involved should prepare a letter of offer or intent showing the details of the seller and purchaser, the description of the property on offer, and the proposed purchase price and modes of payment.
3. Sale Agreement and Deposit Payment: Once both the buyer and the seller agree, there is a need to ensure that the offer includes the terms and conditions. The seller's advocate usually drafts the sales agreement, which is then presented to the buyer's advocate for approval. Upon the execution of the sales agreement, the agreed deposit is paid by the purchaser through their advocate to the seller's advocate's account.
4.  Payment of Land Rates: Be aware of any pending land rates, as failure to remit rates can affect the transaction. The seller should clear any outstanding rates on the land before completing the transaction.
5. Transfer Documents and Consent to Transfer: The seller's advocate prepares transfer documents that will be executed by both the buyer and the seller. The transfer documents will only be executed after consent to transfer has been issued by the commissioner of lands.

   

6. Valuation: For purposes of stamp duty, an application for valuation is made to the government valuer. The valuer conducts a site visit to prepare the requisite valuation report. Stamp duty is crucial for registering the property, and the payable duty is determined by the government valuer.
7. Payment of Stamp Duty: The responsibility of paying the stamp duty lies with the buyer. This tax is levied on all lands and is crucial for the registration process.
8.  Registration of Transfer: Once the registration process is complete, the legal ownership of the land shall have changed hands.
9. Exchange of Documents: Upon receipt of the complete documents from the seller, the buyer is obligated, in exchange for the documents, to pay the entire balance against the land through their advocates to finalize the registration after paying the requisite stamp duty.

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