Land is a lucrative investment when purchased strategically. However, the land buying process can be complex, especially for people just starting their land ownership journey. Working with a trusted real estate company can make this process easier for a buyer.
Here are the key legal steps to follow when buying land in Kenya:
- Identify the Land You Want to Buy
The first step of the land acquisition process is to search for and identify suitable land that meets your needs. You can find land for sale on different online listing sites, by word of mouth, or through a reputable real estate company.
It’s important to understand the intended purpose of the land you need, such as residential, commercial, or agriculture, and whether it matches the type of ownership the potential land holds.
- Conduct a Search at the Land Registry
When a buyer has found potential land and shown interest to the seller, the next step is to do their due diligence by conducting pre-purchase research at the land registry. This confirms the true owner of the land and whether the title has notice of legal claim or other scuffles.
Buyers can do an online land search at Ksh. 520, and will need a copy of the seller’s ID and land title. Next is a search at the local registry where the land is located to determine if it has pending land rates and tax payments.
- Present an Offer and Negotiate Terms of Sale
Once the buyer is satisfied with all the pre-purchase checks, the next step of the land buying process is to discuss and agree on the terms of the sale. This includes the price, terms of payment, and who pays for what costs. It’s best to work with an advocate or professional real estate agent here to ensure you’re getting a good deal.
- Acquire Land Maps and Visit the Land With a Surveyor
A land map or survey plan outlines the boundaries of a piece of land. The buyer will acquire two types of land maps, one drawn to scale of the exact land measurements and the other showing neighboring lands. You can get these maps from the Ministry of Land or a surveyor at an estimated cost of Ksh. 350 each. Next, visit the physical land location with a surveyor and the seller to verify the measurements and erect beacons to prevent future disputes.
- Read and Sign the Sale Agreement
If everything is in order, the seller’s lawyer will prepare a sales agreement detailing things like the purchase price, name of the parties involved, payment schedule, mode of payment, and what should happen in case of a contract breach. While it’s not compulsory, it’s advisable to have an advocate as well, to help you understand the terms and get your questions answered before signing. If the agreement requires you to pay a deposit amount at this stage, ensure the payment is made to the seller’s advocate account and not directly to the seller.
- Obtain Clearance From the Land Control Board
The Land Control Board (LCB) is made up of county commissioners and elders from the area where the land is located. They ensure transparent land transfers and prevent future disputes by issuing consent for land sale. A land buyer cannot obtain a new title without clearance from the LCB so it’s advisable to wait for this step before making final payments. Booking a scheduled meeting with the LCB costs Ksh. 1000 but you can arrange for an urgent meeting at a higher cost.
- Apply for Land Valuation
To pay stamp duty fees, the seller must apply for valuation at the land registry where the land is located. A government valuer will visit the land and assess its market value, which may differ from the purchase price. Typically, the buyer pays the stamp duty which is 2% of the valuation amount for land outside municipalities and 4% for land within municipalities. Payment can be made via the KRA iTax portal.
- Transfer of Land Ownership and Acquiring a New Title Deed
The final step of the legal process of buying land in Kenya is land transfer registration. Now that you’ve made the purchase to your ownership, the same must be reflected in the land registry. The seller presents required documents, the County government reviews them, and if satisfied, a new land title is issued. After a week or so you can do another land search with the new title to make sure you’re the new landowner.
The regulated legal fees for land purchase depend on the sale price. For example, the advocate fee for land up to Ksh. 1.75 million is Kah. 35,000.
Buy Land in Kenya With the Help of Pettmall Shelters
Looking to purchase land in Kenya? Pettmall Shelters has affordable plots for sale that are ready for development and are located in prime locations.
Call us today at +254-726 333 222 or contact us online to book a free site visit to any of our properties.