Understand the Procedure of buying land in Kenya
As much as it is everyone’s dream to own a piece of land in Kenya, most people do not know buying land in Kenya process it takes when buying land. For first buyers, the process may be overwhelming. But with the right information in mind, buying land can be smooth despite the obstacles involved.
Land is a fixed valuable asset and one of the most promising investments one can endeavor into, in Kenya. Below are legal procedures one needs to follow;
1. Search and Inspection of the title deed.
After identifying the piece of land, you would like to buy, always ask for a copy of the title deed so you may go and perform a search on it. This is to verify whether the land belongs to the individual or company selling you the property. It is done for authentication purposes at the Ministry of Lands. They charge a small fee of Ksh. 520 per search.
This package includes offers and price negotiations. After the search results have come authenticated, the sales advocate can prepare on offer letter. This letter should contain details of both the seller together with the proposed land price and mode of payment. A negotiation is necessary for the price to be lowered.
3. Sale Agreement and deposit
After price agreement, make sure that the sale agreement has the terms and conditions that both parties agreed on. It is drafted by the seller’s lawyer and handed to the buyer’s lawyer for approval. After approval, a payment of the agreed deposit is sent to the seller’s advocate account.
Land rates are levies imposed on all parcels of land and payable to the county governments. After full payment of all rates, one is issued with the rates clearance certificate which is evidence that all rates and accrued interests have been fully paid. County governments charge different amounts for the land rates. This is a legal responsibility for all land owners that should be a commitment.
This is the transfer of documents and consent to the transfer. Prepared by the seller’s advocate and executed by both the buyer and the seller. Consent of transfer has to be issued by the commissioner of lands for the transfer of documents to be executed.
Valuation is a quantitative process of determining the fair value of an asset or a firm. The valuation is applied by the government valuer who makes a site visit to enable them prepare the requisite valuation report. Stamp duty is important as it is used in registering the property.
7. Payment of stamp duty
The buyer needs to pay for the stamp duty, a tax levied on all lands.
8. Registration of Transfer
This is after completion of registration process. Legal ownership will officially change hands after the process.
9. Exchange of Documents
The buyer is obligated to pay the seller the entire balance against the land through his lawyers to finalize the registrations of documents after paying the stamp duty.
Denver Group Limited is a genuine agency in Kenya that sells plots with ready Title Deeds. To invest with us contact us 0701 730 267.