Land is a very valuable asset because of its finiteness. There is only so much land that is available on this earth.
Humans not only live on but also perform all economic activities on land. This coupled with the fact the world population is ever increasing, land everywhere keeps on appreciating in value consequently attracting an upsurge in demand.
Because land is constantly appreciating in value, it is deemed an excellent investment by many. Hence the reason why land transactions are fraught with fraud. Therefore, as a buyer you need to know pitfalls to avoid and safeguards to take when purchasing land lest you find yourself deep in endless court battles or having lost your hard-earned money to swindlers or your million shillings investment being demolished because it is built at the wrong place such as a riparian reserve.
The following are 7 things that you need to do to avoid becoming a victim of land fraud:
- Proposed use of the land
Of course you expected the first thing to be the land search, right? Well, that is an essential step but getting to know the use of land is equally important.
Land in Kenya is categorized as residential, commercial, recreational, agricultural, industrial, riparian reserves, forest land, national parks and reserves, wildlife corridor, gazetted historical sites, flight paths, among others. The categorization of land is referred to as zoning. You should therefore inquire from both the National and County Governments whether the land in question is available for use, registered and suitable for the purpose for which you want to buy it.
2. Meet the Seller in person
Before you pay for the land, have a physical meeting with the seller. The meeting will give you a chance to view the office location of the seller and as well as proceed to the location of the land. Whereas online or remote transactions are growing popular and very convenient today, they are susceptible to fraud by fraudsters who may take advantage of you.
3. Get to know the history of the land
Neighbours of the land you are interested in, are better placed to provide you with information regarding the real owner of the land, history of the land ownership as well as whether there are disputes over the land. A neighbour may inform you of family squabbles, boundary issues, how the land came about, whether it was a settlement scheme, community land, other buyers (multiple owners), set aside for public utilities such as sewerage plants, cemeteries and other very valuable information.
Show the neighbours the photos of the sellers or the directors as they appear on the copies of their National ID cards, and ask them to confirm whether indeed the persons whose photos are on the IDs are indeed the real owner of the land. If the seller is not the real owner and had forged the ID of the owner by replacing the real owner’s photo with the photo of the fraudster-seller, the neighbour will identify the deception, for instance where the real owner is an old lady or young lady and the photo on the ID shows a young woman or old lady respectively.
4. Physical visit
Believe what you see and not what you hear or read online. Only pay after you have confirmed that the land meets your expectations, has a clean title, and is owned by the person purporting to sell it. You can be promised an elephant and be given a rat. You should also conduct a physical inspection of the boundaries.
5. Title Deed Search
Conduct a search at the relevant land registry. If you are buying land from a company, also conduct a search on the company’s directors and shareholders at the Companies’ Registry.
Why is the Title Deed Seach Important?
- You will know the true owner of the land.
- You will know who are the true directors of the company, if the seller is a company.
- You will know if the land has an encumbrance (such as a bank charge, a caution, a caveat, a restriction).
- You get compensation for a mistake that arises out of an official search.
- You will know the exact size of the land as captured in the land records.
- You will know the history of the land, whether it belongs ultimately to the National Government or the County Government or a governmental authority such as the Export Processing Zones (in case of Leases), the number of years remaining on the Lease, or it belongs to the seller (in case of Freehold land).
- You will know the rent payable to the National Government, if there is any.
6. Land Sales Agreement
After you have done your due diligence and you’re satisfied that you’re dealing with a genuine land owner, you can proceed to sign a legal land sales agreement.
7. Fence the land
It’s advisable once you make a 10% deposit of the land, you fence the acquired land as you continue paying or await the transfer of the legal documents to you. Comfort Homes allows you to fence your land with as little as 10% deposit and upon signing the legal land sales agreement. This is important as it shows ownership of the land in question. Fencing will do two critical things: (i) it will restrict encroachment; and (ii) it will help unearth any cases of multiple buyers. If the seller is dishonest and had sold the land to other persons, or is a swindler who is selling land that does not belong to them, the other buyers or the real owner will be informed by neighbours or their lookouts that a stranger is fencing their land and will rush to find out what is going on.
Parting Shot
Land transactions may look simple but are complex in their simplicity. There is more to them than just buying and selling. You may know what to do but fail to know how to do it.
Visit any of Comfort Homes branches and start your land ownership journey and advice on how to get the right land for all your needs.
