Documents and factors to consider when buying land in Kenya
Buying land in Kenya comes with mixed feelings of anxiety and excitement. For many, owning a title is a great achievement, especially now. However, this is understandable because purchasing a piece of land is not easy. Besides, the real estate sector has a lot of fraud cases hence one must be careful.
One of the areas that land buyers need much information in is documentation. You need to know all the legal documents required in the land purchasing process otherwise, you may be given a fake title and become a statistic of the many fraud cases.
Are you interested in owning properties/land in Kenya? We have you covered in this article because we shall discuss all the important documents you must have in your land-buying process and their role. Let us get started.
1. Letter of Offer
This is a written document from the buyer to the land owner stating their interest in purchasing a specific piece of land. This document contains the seller’s and buyer’s names, the lawyer in charge of the process, the identification number of the property or land, terms of payment either in cash or installments, and a slot for details about the next of kin. Additionally, a letter of offer spells out the terms and conditions binding the buyer and seller.
The buyer is supposed to sign this document in copy and give one copy to the seller while remaining with the other. As a buyer, this is the first document you will sign once you identify a plot and pay the booking fee.
A letter of offer removes the possibility of two parties purchasing the same land.
2. Sale Agreement
A sale agreement in real estate is a legal contract that obliges a land seller to sell land and a buyer to purchase it. Here are the contents found in a land/property sale agreement.
- Name of the seller and buyer as it appears on their national ID Cards or passports.
- Description of the land/property under sale. This includes the land’s status (occupied or vacant), plot number, location, and general description.
- The buying price of the land and mode of payment.
- Special conditions- These are the conditions surrounding land on sale, including who is to cater for the legal fee, stamp duty, and the completion period of the transaction.
Why is a Sale Agreement Important?
It protects the interests of both the buyer and seller by allowing any party to take legal action if one fails to adhere to the terms and conditions in the agreement. Sales agreements are given to the vendor, buyer, and the lawyer in charge of the transaction.
3. Title Transfer Document
This is the document used during the transfer of the title from the seller’s name to the buyer’s name. The document is filled out after the land /property payment is completed. Before you submit a title transfer document, attach it with the documents below.
- Approved consent for sale from the land’s board.
- Stamp duty slip to show that the government levies are paid.
- Passport photos of the buyer and the investment company.
- KRA pin of the investment company and that of the buyer.
- Certificate of incorporation of the investment company.
A title transfer document is filled in 3 copies. One copy is filled at the land registry, the second to the buyer, and the third to the investment company.
Why is a title transfer document important?
It is the legal proof of the title transfer, and you can use it to trace the history of the property/land in the lands registry.
In conclusion, these are the three most critical documents every land investor must have when purchasing land. The documents are enough proof that the land is legally yours. Are you planning to buy land? Ensure you request the documents from the relationship officer. If you are abroad, the offer letter can be emailed to you, while the title transfer form and sales agreement will be sent via a courier service.