Conducting due diligence is a crucial step for investors and businesses, providing them with essential insights into the nature of a transaction, associated risks, and its compatibility with their portfolio. Think of it as thorough "homework" before engaging in any investment, and it plays a pivotal role in making well-informed decisions.
Kenyatta Road, situated in Kiambu County and part of the expanding Nairobi metropolis, is a rapidly growing satellite area. Accessible via Thika Road, Eastern Bypass, and Northern Bypass, it presents attractive opportunities for real estate investment. However, Fanaka Real Estate advises on the importance of conducting due diligence before purchasing land in this area.
Fanaka Real Estate is a certified agency specializing in land sales in various locations, including Ruiru, Kamakis, Juja Road, and Kenyatta Road. It emphasizes the significance of authenticating the real estate firm, its agents, land ownership, and community land policies as a safeguard against fraudulent activities.
Due diligence serves the purpose of verifying land ownership and the existence of a valid title deed before proceeding with a sale agreement. It involves several key steps:
1. Land Search: Officially search for land records at the Land Registry nearest to the property's location. Alternatively, you can conduct the search online through the ArdhiSasa digital land system. This search provides crucial information about registered landowners, existing charges like mortgages and loans, caveats, and other restrictions.
2. County Office Search: Visit the County offices in Kiambu to obtain additional details. This includes confirming if land rates have been paid and are up to date, along with other county permissions or restrictions.
3. Verify Registered Persons: Authenticate the identity of the seller by verifying their national IDs at the land's offices to prevent falling victim to identity fraud.
4. Utilities Verification: Check various utilities to ensure there are no pending bills associated with the land. This includes bank loans, land rates, lease rates, and other potential costs that could affect land prices.
5. Boundary Verification: Purchase a Deed Plan from the county surveyor's office, which is a map indicating the land's dimensions. A surveyor can guide you on boundaries, measurements, and beacons. Ensure that the beacons marking boundaries have not been tampered with.
6. Land Investment Plan: Confirm that the land aligns with your development plans. If it's for agriculture, assess its suitability for farming. For commercial purposes, verify that both the county and community approve such development plans and that there are no stringent procedures or restrictions.
7. Seek Legal Representation: Engage a licensed lawyer experienced in land/property transactions and conveyancing to guide you through the purchase. They will ensure all procedures adhere to land laws.
8. Buy from a Certified Real Estate Company: Consider purchasing land from a certified real estate company, as they have already conducted due diligence, covered all land costs, and processed the title on your behalf. Fanaka, for instance, offers real-time title deeds and handles land transfer processes, providing pin and registration certificates for both the company and its agents.
In conclusion, due diligence is an essential step in the land acquisition process, ensuring that you make informed decisions and protect your interests.
