For novice buyers, the process of finding and buying land can be a daunting task. It can be long, expensive and heart wrenching. You may end up purchasing land on a road reserve or even a swampland if you're not careful. We've all heard those horror stories.
If you are planning on buying land in Kenya, there are vital steps you should follow. Here's a 10 point guide to help you:
- Money Matters
- Location, Location, Location
Also, someone may decide to squat on your land for a period of two decades as you wait for the value to appreciate. If you did not issue a land use caveat, squatters can claim compensation before moving out.
- What's your fancy?
Freehold: The freehold tenure allows you as a landowner to hold the land for an indefinite term. This is not open to foreigners in Kenya. Foreign land ownership is a post for another time.
Leasehold: The leasehold tenure will allow you as a landowner to hold land for a limited tenure with an option of extending the tenure upon expiry. The Kenyan constitution limits non-citizens to a maximum tenure of 99 years.
Customary: Customary tenure is entirely based on communal ownership of land, where the land assignment is done to a clearly defined group of people who usually belong to the same ethnic community/clan/family in accordance to traditional African land inheritance customs that were in place way before colonialism.
Public/ State land: This is a tenure type that portrays the government as a private landowner and assigning all unoccupied and wasteland to it.
You've got to pay attention to detail when choosing what works best for you. Do not mistakenly purchase land classified as public to develop your dream house. It'll end in premium tears! Cons are everywhere!
- Due Diligence
- A prospective buyer should obtain a copy of the land title deed from the seller to facilitate a proof of ownership search at the Lands Registry. On a good day without bureaucracy, it takes about two hours to get search results after filing a search application form (and attaching a copy of the title). This process will cost Ksh 520.
- If the search at the Lands Registry was satisfactory, you need to check in with the county office. This is very important to uncover any unpaid land rates. You don't want to buy land with outstanding land rates that could be very costly in the long run. Nairobi County will set you back Ksh 7500. It varies from county to county.
- Get maps. You'll need two of these. You can get them from the ministry of lands or your local surveyor. One of these maps will give you an overview of the land you plan to purchase and close by plots while the other is drawn to scale. This will give you a visual of borders. The maps cost Ksh.300 each.
- Site visit, ground verification: So you have the maps. Now what? You'll need to visit the site accompanied by the seller and surveyor to verify dimensions. Once everything is cross checked, you can start marking beacon points. You'll need to erect beacons after purchase. Very important to avoid border disputes.
- Lawyer up!
The agreement, which is usually prepared by the seller's lawyer, indicates the terms of sale. Price, mode of payment, whether you'll be issued a title deed or certificate of ownership-the whole shebang. At this point, the seller may ask you to pay a deposit, but it is advisable not to until you get clearance from the Land Control Board - which has the final say on land deals.
- Land Control Board
You don't want to end up buying land that is being fought over by siblings right? Most forums charge Ksh 1000 for a meeting. However, you can get past the schedule at a cost of Ksh.5000 by getting clearance from the county commissioner.
- Stamp Duty
- Paperwork- Transfer documents
You should then take all these documents alongside the sale agreement document, clearance from LCB, clearance from the county, land search documents, your national ID, KRA Pin, 3 passport photos and the old title deed to the ministry of land.
Whew! Pesky paperwork. But you've got to do what you've got to do. Change of land ownership will take around 2 weeks (without bureaucracy) and you will pay at least Ksh 5000 to process a new title.
- Making it official
- Land Caveat
How to go about issuing the caveat
- Fill in prescribed form (Form R.L. 22) from the Ministry of Lands
- Avail an affidavit explaining the interest you have in the land.
- Provide a copy of the title (or the title number)
- Pay the prescribed fee as advised by the Ministry of Lands.