TOPO TECH consultants Ltd

16/07/2025

Land as security or collateral:

~ A charge is an interest over property i.e. land to secure a loan or other financial obligation

~ The charge gives the lender the right to sell the property if the borrower defaults on the financial obligation

~ The charge operates only as security and does not pass interest to the bank. Once the loan is repaid, the charge is discharged

Types of Charges;
~ Legal Charge; A legal charge is created by a written instrument (a charge document) and registered against the title of the land

~ First charge, Second charge, Further charge; same concept but these ones follow an order of priority such that it determines the first to recover debts or loans

Key considerations;
- Registration; A charge must be registered to be valid and enforceable

- Tacking and consolidation; a charge document may allow the bank to give further loans to the borrower on a current or continuing account

- Order of priority; priority depends on the order of registration. The Charge that was registered first has priority over subsequent interests registered against the same title. For further loans under the same charge, the further loans have priority if it's noted on the register in which the charge is registered. Also, if the subsequent charge has consented in writing to the priority of the further advances/loans

- Discharge of charges; the borrower can redeem the charge by paying off the loan

- Spousal consent; The Matrimonial Property Act requires spousal consent before an interest in matrimonial property is alienated

What happens when the borrower defaults?
The Land Act provides remedies to the bank or other lending institutions as follows;
~ Sue the borrower for any money owing under the charge
~ Appoint a receiver of the income of the charged land
~ Lease or sublease the charged land
~ Enter into possession of the charged land
~ Sell the charged land

Stay informed.

18/02/2025

Prime land for sale in Shompole kiserian, subdivided into 6 portions of an Acre each.

18/02/2025

TOPO TECH Surveys Ltd

For;
1. Topographical Survey
2. Cadastral Survey
3. Engineering Survey
4. General Survey

Services;
Land Surveying, Subdivision, Beacon Re-establishing, Area Confirmation, Boundary Allignment and Title Processing.
Call us on 0710 174 027

18/02/2025

𝐓𝐢𝐭𝐥𝐞 𝐃𝐞𝐞𝐝 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 𝐖𝐡𝐞𝐧 𝐁𝐮𝐲𝐢𝐧𝐠 𝐋𝐚𝐧𝐝 𝐢𝐧 𝐊𝐞𝐧𝐲𝐚

Introduction

Land ownership is a critical aspect of wealth and stability in Kenya. When one decides to purchase land, it is imperative to understand the intricate process of transferring land title deeds to ensure a legally sound and secure transaction.I will eloquently describe the comprehensive process of land title deed transfer when buying land in Kenya, highlighting the key steps involved and their significance.

1. Due Diligence

Before embarking on the land title deed transfer process, the prospective buyer must conduct due diligence. This involves verifying the legitimacy of the land and its ownership. It is crucial to scrutinize the land's history, checking for any existing encumbrances, land disputes, or pending legal issues. Engaging the services of a registered land surveyor and a land lawyer is advisable during this stage.

2. Agreement and Offer Letter

Once due diligence is complete, the buyer and seller enter into an agreement. This agreement outlines the terms and conditions of the land sale, including the purchase price, payment schedule, and any other specific agreements. After agreeing on the terms, the seller issues an offer letter to the buyer, which is a formal expression of intent to sell the land.

3. Land Search and Consent

The next step is to conduct a land search at the Ministry of Lands to verify the land's ownership and any existing encumbrances. Additionally, consent must be obtained from various authorities, such as the local county government and the National Land Commission, especially if the land is within a trust or community land area. This process can take some time and may require the payment of fees.

4. Drafting and Signing the Sale Agreement

Upon obtaining all necessary consents and ensuring a clean land search, the buyer and seller proceed to draft a sale agreement. This legal document outlines the terms and conditions of the sale in detail, including the land's boundaries, any liabilities, and the timeline for completion. Once both parties are satisfied with the terms, they sign the agreement in the presence of witnesses.

5. Payment and Stamp Duty

After signing the sale agreement, the buyer is required to pay the purchase price. Additionally, stamp duty must be paid to the Kenya Revenue Authority (KRA) based on the land's value as indicated in the agreement. Once these payments are made, the agreement is stamped and considered legally binding.

6. Application for Transfer

The buyer, with the assistance of a land lawyer, then prepares and submits an application for transfer to the Ministry of Lands. This application includes the sale agreement, proof of payment of stamp duty, and any other required documents. The Ministry of Lands reviews the application, and if everything is in order, they issue a letter of consent for the transfer.

7. Land Control Board Approval

For land in certain areas or regions, approval from the local Land Control Board may be necessary. The board assesses the application and ensures that the transfer is in compliance with the relevant land laws and regulations.

8. Issuance of New Title Deed

Upon approval by the Ministry of Lands and the Land Control Board, a new title deed is issued in the buyer's name. This marks the completion of the land title deed transfer process.

Conclusion

Buying land in Kenya involves a meticulous process of due diligence, legal agreements, payments, and government approvals. It is a complex but necessary journey to secure one's property rights and investment. Understanding and following each step is essential to ensure a smooth and legally sound land title deed transfer process. Proper legal advice and guidance from professionals in the field are invaluable in navigating this intricate process successfully.

Written by Too kibet Alexander Kibs
Land surveyor and CEO
TOPO TECH Ltd
0710 174 027

We do Real estate, Land Surveying,management and consultancy services.

18/02/2025

Halo. TOPO TECH LTD we buy and sale land and property.
We also do land surveying and title processing. Contact me on 0710 174 027

We do Real estate, Land Surveying,management and consultancy services.

07/10/2024

Happy customers service week to you all. We ltd celebrate you on this special day.

05/09/2023

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01/02/2023

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23/12/2022

30/10/2022

Are you buying a piece of land? We will confirm for you the land beacons,size and any other related work for you. Don't buy land blindly, always involve a land surveyor.