Land purchase has made by cousin a very bitter man this festive season.
He recently sold a valuable piece of inheritance land at Ruiru and decided to use some of the money to buy another piece of land at a less valuable location and use the rest of the money for other investments.
He thought he had a solid plan until the agent who was to show them them the exact location of their piece of land and also to issue them with their title deeds disappeared into thin air.
They reported the matter to the nearby police station and now the issues surrounding the sale agreement are under investigation.
Theirs is not an isolated case; Kenyans have lost their life savings under the cartels who sell their non-existent parcels of land under fake pretense of being the real owners.
Now, here is how to perform due diligence before you buy that piece of land and avoid being conned;
What is due diligence
Due diligence is when you confirm the facts of the land which you intend to buy. These facts include ownership, location, dimensions or size of the property at hand or otherwise on sale.
Land Scouting
First, you must have clearly defined your goals such as where you intend to buy.
After this, you need to either personal look for the exact parcel of land or engage a reputable, reliable and proven person to assist you find a potential purchase land.
Kindly make sure to spend time to interrogate the neighbors to the lands you intend to buy or alternatively you may talk to the local elders or even the local area chief as they could have some useful information.
This information could be the real owner or even if the land is not for sale. These people could also help you know if they are some unresolved inheritance disputes.
Land Search
Next, you will need to do a land search.
The search confirms the real owner of the land, status of the land, size, and transfer history.
The search is normally conducted at the land registry office of the particular jurisdictions in which the land is located, and charged Ksh 500 only.
Documents needed are the secure copy of the owner’s title deed, your ID copy and copy of KRA pin of the seller.
Once you pay the land registrar, they will issue you with a receipt.
You will then handover a copy of the receipt and your ID copy to the lands office officials and they will issue you with a search certificate which details all the particulars of the land.
If you are not able to do this yourself, engage a lawyer to do it for you.
Make sure the lawyer you engage is licensed as an advocate of the high court of Kenya to avoid being conned.
It is also important to ask the registrar or the lawyer to get you a certified copy of the green card. A green card very important it shows the land ownership history and transfer and contains as many details as the title deed.
In case there is a discrepancy between the green card and search certificate, this is a huge red flag and always walkaway.
Always also conduct a search at the county office to know if there are any unpaid land rates or fees.
Acquire a Land Surveyor’s map
Look for a land surveyor to get you one map showing you exact measurements of the land and a second map showing an overlay, or plan of the area in which the land is located.
Then let the land surveyor visit the land, measure it as per the indicated sizes and erect land beacons.
Agree on the Cost of Land with owner
After conducting a land search, getting certified copies of the green card and verifying the size of the land, you will have to agree on the actual price with the land owner.
Ensure that you get value for your money by asking a real estate agent or enquiring from neighbors on the land prices in that particular location.
After you agree on the price, you will pay a deposit to the owner. The legal threshold in Kenya to pay a 10% deposit but you can pay more based on what you both will agree with the owner.
Sale Agreement between Owner and Buyer
At this stage, both you and the land seller should engage lawyers. It is always good to have different lawyers for each of the parties in case of future disputes.
The lawyers will then prepare a sale agreement for both parties to sign.
The agreement also includes, the overall price, the deposit, the mode of payments amongst other details.
At this stage, you will have to pay a minimum deposit of 10% of the value of the land to the seller. It is not fixed and you can pay more based on what you mutually agree.
Clearance by the Lands Control Board
The local lands control board consists of residents of the area appointed by the lands ministry to oversee lands transfers and other matters.
You will have to visit the board, together with the seller, complete with the land transaction documents.
During one of its monthly meetings, the board will verify the entire process to ensure that it was conducted in a diligent manner.
Land Valuation
Next, visit the lands registry office where the land is located and fill the lands valuation form.
The seller must also be present with requisite documents during this process.
Next, pay for the stamp duty.
Next, apply for a land transfer by filling land transfer forms.
After the transfer is done, the old title deed will be destroyed and a new one is issued.
After you have a new title deed have been issued, confirm that you are now the owner at the land registry office.
Additional tip: Make this transfer has been captured on the green book as an omission is one of the most common ways cartels use to grab land in Kenya.
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