Are you looking to buy land in Kenya? If so, you might be wondering what the legal steps for buying land in Kenya are. Every Kenyan citizen can own a piece of land in any part of the country according to the constitution. Therefore, it is imperative to be well versed in the legal procedures to follow to avoid losing your hard earned money and also falling into the hands of con artists. Read on and learn the steps that should be followed.
1. Identification Of Land
Identification of the piece of land is the very first step in acquiring land in Kenya. You should know that some land pieces can be strictly residential, commercial, or both. Apart from that, also consider the location and size as these two variables will determine the price of the particular land. Therefore, choose a piece of land that will serve your purpose.
2. Inspection And Search Of The Title Deed
After identifying the piece of land, ask for a copy of the title from the seller, visit the land registry, and search. Usually, it takes three working days to get results from the real owner of the piece of land. It will also determine if there is any caution placed against that particular piece of land.
Other documents that you may need to conduct the land search are; the KRA pin certificate and the identification card of the seller.
Luckily, land search has been simplified nowadays thanks to technology. Kenyans can perform an online land search through e-Citizen from wherever they are. You will need to follow these simple steps when performing an online land search in Kenya.
- First, Log in to the eCitizen portal and create an account if you do not have one.
- Sign in and go to the Ministry of Land and physical planning, and click on land search.
- Put in the title number and fill out the online land search form to completion.
- Before submitting the form ensure that all the details are correct.
- You will be required to pay a small amount to facilitate the land search. You can use M-Pesa, debit card, or credit card. Cash payment is not allowed. It costs approximately Ksh 500.
- After successfully paying, and printing out the results, the information of the search is also retained online on the portal. Anytime you log in, you will be able to access it.
3. Check And Conform Any Unpaid Land Rates
After the search is complete, the next step would be to ensure that the land does not have any pending unpaid land rates. This is done by performing a search at the county office where the particular land is located.
The fee charged for this process varies in counties. In case there are pending charges, ensure that you discuss with the seller who will cover the outstanding land rates. Noteworthy, it is the obligation of the landowner to pay the rates before disposing of a property and not the buyer.
4. Obtain The Land Map And Land Verification
Acquiring a land map for the land you are interested in buying is a crucial step that buyers tend to assume. You should get two land maps from a local surveyor or land registry. One map is usually drawn to scale and gives the exact measurements of the land. The second map provides an overview of the specific land you are interested in and the adjacent plots. The maps cost approximately Ksh 300 to Ksh 350.
After the acquisition of the two maps, then proceed to physically authenticate what is in the map with the seller and surveyor. Once you have authenticated the validity of the land, ensure that the beacons erected are in place as per the measurement of the presence of the Surveyor.
5. Price Discussions And Offers
Following the end of a rigorous due diligence process and determining that the land is satisfactory, the buyer should then ask their lawyer to prepare a purchase offer. This is after the two parties agree and negotiate on the price, factoring in things like pending land rates.
The offer letter entails the details of the buyer and the seller, the proposed buying price, and a description of the land for sale on offer.
6. Sale Agreement
Once all these important steps have been checked out, the seller and buyer can proceed to negotiate and make a sale agreement. This process is conducted by the seller and buyer lawyers. The sale agreement contains the factors that will guide the process which is: the price agreed on, and the method of payment.
The seller’s lawyer will draft the sale agreement and present it to the buyer’s lawyer to be approved. Upon the agreement, the buyer will deposit the agreed deposit through their lawyer.
7. Clearance By The Land Control Board
The subsequent step will be to obtain clearance from the Land control board, usually composed of the county commissioners and elders residing at the geographical location of the land.
The clearance is vital as it ensures that the land transfer and transaction are transparent and no illegality took place. This process costs around Ksh 1000. The board meeting is normally conveyed monthly but special sittings can be held in case of urgency.
8. Preparation Of Transfer Documents And Consent To Transfer
Following the approval and issuance of consent to transfer from the commissioners of land. The seller’s lawyer can then prepare a transfer document which is usually signed by the seller and buyer. This is once the seller has received the deposit.
The buyer will then go to the National Land Commission (NLC), the buyer should go with the following documents; booking form, rates clearance, Consent from the land commission board, land rent certificate, sale agreement, KRA pin, and the old title which will be used to apply for consent to transfer. This process will take approximately 9 days at a cost of Ksh 1000.
9. Payment Of Stamp Duty And Valuation
Next, the buyer should apply for the valuation of the piece of land by a government valuer. The document used will be the valuation form completed by the seller.
Then the lands office will use the provided document to calculate the stamp duty that should be paid. The government valuer should issue the valuation report within three days. The stamp duty is paid to the Commissioner of Domestic Taxes which is 2% for rural areas and 4% for urban areas. It will take four days for KRA to confirm if they received the payment.
10. Registration Of The Transfer
Subsequent to the successful payment of the stamp duty. The buyer should settle the remaining balance of the agreed amount to finalise the registration process of the documents. The process will take about 12 days to complete.
Once complete the land is considered to have legally changed hands. This now makes it the property of the buyer. The process of buying land is considered complete.