However, under the guidance of comprehensive property and land laws, the process of buying and selling real estate in Kenya should be straightforward, which is far from straightforward. Instead, buyers must deal with slow document processes that are compromised by corruption, and buyers must either know the right people or provide bribes to speed up the process.
All hopes have not been lost. With the widespread implementation of new reforms such as the new land reform, Kenya's buying and selling properties will be improved and existing laws will apply to this letter.
To ensure that you comply with Kenyan law to guide real estate transactions and avoid pitfalls, it is recommended that you seek legal representation when buying/selling properties in the country.
Land registration
In Kenya, the land is registered in:
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Land law -
National Land Commission Land -
Land registration law; registration in all areas
Land control law
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According to the "Land Management Law", the law prohibits the Land Control Committee from agreeing to transfer agricultural land to companies and people who are not eligible to hold agricultural land.
Foreign and local investment in Kenyan real estate: this process
According to the new constitution, non-citizens and companies with non-citizen shareholders are prohibited from possessing freehold property. The law allows them to own property during the lease period for a period of no more than 99 years.
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The law allows local and foreign real estate investors to purchase residential and commercial real estate in towns and towns without any restrictions, as long as they follow legal procedures. -
However, foreigners and private companies with non-Kenyan citizen shareholders are prohibited by law from purchasing agricultural land unless such purchases are exempt from the provisions of Article 24 of the Land Administration Act.
Property identification
Once an investor searches for and identifies a suitable property, he or she should strive to access and evaluate the property to ensure that:
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It does exist -
It meets your needs and expectations, such as physical location and infrastructure access -
Its conditions are favorable and worth investing
Note: A viewing fee is required to access the property for sale. Fees vary by type and size.
Make the necessary searches
The attorney or buyer must then obtain a copy of the national identity card and property ownership from the seller and conduct the necessary searches at the Land Bureau and the Personnel Registration Office.
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This step is very important to verify that the owner is really the owner of the property. -
To search, the law requires you to submit a copy of the ownership contract and search application form and submit it to the registry. -
The cost of the necessary search is Ksh500. -
The Land Registry obtained the results within 2-3 days.
Search results should show up
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Registered title holder of the property -
Property size -
Any pending issues regarding property registration, such as court orders, warnings and bans.
In addition, the important thing is:
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Verify that the property contained in the Ndung'u Land Report submitted by the Land Survey Committee is illegal or irregular. -
Let the registered surveyor not only establish the beacon of the property, but also check the land of the investigation office.
Negotiation and sales agreement
After a satisfactory preliminary inspection, the existence of the respective legal team should be negotiated between the buyer and the seller.
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Negotiations need to discuss property prices and payment terms -
10% of the total advance payment is prepaid as a prepayment and the balance is paid when the sales transaction is completed -
The terms of the agreement between the parties provide the basis for the seller's proponent to prepare the sales agreement, which is then approved by the seller.
Sales agreement contains
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Terms of sale -
price -
payment terms -
Payment completion period -
Completion document for facilitating property transfer -
The legal association's terms of sale are usually included
When both parties accept the sales agreement, they will first sign with the buyer and then the seller. Finally, the money changed hands.
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A stamp duty value of Ksh200 is then obtained from the Land Office as required by law to ensure that the documents signed can be accepted by the court in the event of a dispute.
Transfer of property ownership and stamp duty
Once the buyer's advocates are ready to transfer, both parties will approve and sign.
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The seller is responsible for obtaining every necessary completion document required to register the property with the buyer. -
The buyer then pays the stamp duty to the Kenya Revenue Agency in accordance with Section 480 of the Kenyan Law on Stamp Duty Act. -
Before determining the tax, the seller must apply for the property valuation by signing the valuation of the stamp duty form and transferring the property form to the property office. -
Then fill out the stamp duty report, assessment and payment slip at the Lands Office.
Once the stamp duty is obtained and the transfer process is completed, the law requires that the transfer document be registered with the following documents:
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Original contract -
Stamp duty report -
Evaluation and payment slip -
Land clearance certificate -
Transfer consent -
Valuation of stamp duty forms
Property registration: the final stage of property transfer
When the buyer obtains the transfer of the registered property, the law proposes to verify its registration by conducting a property search.
Development license
If the owner intends to develop the property he purchased, he or she must go to the relevant local authority and obtain the necessary development permit.
Usually, the owner will be required to:
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Entrust an environmental impact assessment report to determine whether the expected development will adversely affect the environment -
Obtain an environmental permit issued by the environmental agency NEMA.
Orignal From: Kenya Real Estate: Buying/Selling Laws and Procedures
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