After a successful site visit, the next step is a critical one: the legal transfer of ownership. This crucial process ensures that your investment is protected and that you become the rightful owner. Understanding the land transfer process will streamline the procedure and provide peace of mind. To navigate this process smoothly, let’s explore the key steps involved in land transfer.
1. Conducting a Land Search
The first and very important step is to confirm that the seller is the eligible owner of the land which is done through a land search. A land search can be conducted by using a Green Card which is applied for at the Ministry of Lands. While conducting a land search, it is advised to use a licensed advocate or a land agent who is versed with knowledge of conveyancing law.
With so many affordable plots and land for sale in Kenya, conducting a land search could save you from making a bad investment. The land search helps to verify the information on the title deed and ensure it accurately reflects the land’s size, location, title deed number and land history including any encumbrances the land has pending.
2. Sale Agreement
After reviewing the land details and conducting a land search, both the buyer and the seller sign a sale agreement. The sale agreement clearly defines the terms of the property for sale, the price of the land, the payment plan and the conditions of the transfer. You are always advised to hire a lawyer to review the sales agreement to protect your best interests. At Username Investment Ltd, we have automated our systems to ensure that after signing the offer letter, you automatically receive a sales agreement in line with the payment terms you have chosen.
3. Land Rates Clearance Certificate
Any outstanding land rates need to be cleared before the transfer of land is done. The seller applies for a Rates Clearance Certificate from the county offices to ensure that before any land transfer, there are no pending charges transferred to the new land owner. As a buyer, ensure that you are investing in a property that is free from any encumbrances.
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4. Consent of Transfer
Before any actual transfer is done, the seller must get a consent form from the National Lands Commission. Obtaining the Consent of Transfer not only guarantees the legal validity of the transaction but also protects the buyer and seller from future disputes. The National Land Commission will examine the application and before offering consent, they will confirm that the land has no disputes and that the land is being used for the intended purpose that complies with the zoning and land use regulations.
5. Payment of Stamp Duty
Stamp duty is a tax levied by the Kenyan government during the transfer of property ownership. Paying of stamp duty is a mandatory requirement in the land transfer process and is used to show that a land transaction has been done per the legal requirements of Kenya. Since stamp duty is a Kenyan tax levied by the government, it is regulated by the Kenya Revenue Authority. The amount of stamp duty paid is based on location and the size of the land. Urban areas have a higher rate compared to rural areas. Therefore, plots and land for sale in areas like Konza and Kitengela which are within urban areas will be higher compared to those in rural areas.
6. Transfer Documents
To protect the investment, there are several transfer documents that the seller and buyer require for a successful transfer. These documents are submitted to the Ministry of Lands for processing awaiting the Title Deed Transfer. These documents include:
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Original title deed
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Signed transfer forms
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Passport-sized photos of both parties
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National ID
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KRA PIN certificates for buyers and sellers
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Sale agreement
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Land rates clearance certificate
7. Title Deed Transfer
This is the last process of the land transfer whereby the Ministry of Lands verifies that all documents presented are accurate and goes on to initiate the title deed transfer. During this stage, as a buyer, you will pay a small fee, which is normally a small percentage of the land value. Thereafter, the Ministry of Lands issues will issue you a new title deed in your name as the buyer. This completes the land transfer process, making you a land owner. Congratulations!
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Conclusion
The land acquisition and transfer process in Kenya may sometimes feel like trying to navigate a maze. However, this is all just part of finally securing your dream investment. To be successful, as a buyer, you must ensure that you do a green card search to avoid falling into the trap of fraudulent sellers, understand all hidden charges involved in the process, and involve professionals along the way. Always remember that a successful transfer process is the key to enjoying your dream of home ownership.
Sarah Wahogo is the CEO of Username Investment Ltd.
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