11/01/2022
BY SYOKIMAU KATANI PROPERTY.
JANUARY 11
SYOKIMAU KATANI PROPERTIES
Authored by: EVANS MAINA
OWNING LAND IN KENYA
Do not get conned: Why due diligence is critical before buying land
Land is a very valuable asset because of its appreciation in value consequently attracting an upsurge in demand as long as it has genuine documents.
As a buyer you need to know pitfalls to avoid and safeguards to take when purchasing land lest you find yourself deep in endless court battles or having lost your hard-earned money to swindlers or your million shillings investment being demolished because it is built at the wrong place such as a riparian reserve.
Things that you need to do to avoid becoming a victim of land fraud:
• Proposed use of the land
Land in Kenya is categorized as agricultural, residential, commercial, industrial, recreational, riparian reserves, forest land, national parks and reserves, wildlife corridor, gazetted historical sites, flight paths, among others. The categorization of land is referred to as zoning. You should therefore enquire from both the National and County Governments whether the land in question is available for use, registered and suitable for the purpose for which you want to buy it.
You should go to the relevant authorities if the land sits next to a major road or highway, an airport, a river, a national park or reserve, forest, historical site etc. to find out from the authority if the land is theirs or not..
• land mutation map
Mutation of a property is the transfer or change of title entry in revenue records of the local municipal corporation. The change in title ownership may occur due to a number of reasons like death of the original owner and subsequent transfer of the ownership due to inheritance or succession or by selling.
It helps you to identify where exactly your plot/land is located.
N/B land mutation map is NOT Title deed.
• Meet the Seller in person
Before you pay for the land, have a physical meeting with the seller. Whereas online or remote transactions are growing popular and very convenient today, they are susceptible to fraud by fraudsters who may take advantage of you.
Request them for copies of their National ID cards, and PIN Certificates. If the seller is a company, request for copies of their National ID cards, and PIN Certificates of the directors.
• Ask neighbours questions about the seller or history of the land
Neighbours of the land you are interested in, are better placed to provide you with information regarding the real owner of the land, history of the land ownership as well as whether there are disputes over the land. A neighbour may inform you of family squabbles, boundary issues, how the land came about, whether it was a settlement scheme, community land, other buyers (multiple owners), set aside for public utilities such as sewerage plants, cemeteries and other very valuable information.
• Physical visit
Believe what you see and not what you hear or read online. Only pay after you have confirmed that the land meets your expectations, has a clean title, and is owned by the person purporting to sell it. You should also conduct a physical inspection of the boundaries.
If possible, wait for the rains if you want to be sure of the drainage and soil type. The case of the upmarket Green-Park Estate in Athi River which flooded in March, 2018 after Stoni Athi River bursts its banks, should be a reminder of the perils of purchasing and constructing on land that sits on flood prone areas.
• Survey
To ascertain your boundary, get a licensed land surveyor to survey the land and confirm the availability and integrity of the beacons and the boundaries. Request the surveyor to obtain the land’s survey map from the Survey’s office and check whether the land and its title number actually exists on the survey map. Survey maps are not easy to forge unlike title deeds, searches and other documents.
• Investigation of the title
Conduct a search at the relevant land registry. If you are buying land from a company, also conduct a search on the company’s directors and shareholders at the Companies’ Registry.
Reasons for doing a search:
1. You will know the true owner of the land.
2. You will know who are the true directors of the company, if the seller is a company.
3. You will know if the land has an encumbrance (such as a bank charge, a caution, a caveat, a restriction).
4. You get compensation for a mistake that arises out of an official search.
5. You will know the exact size of the land as captured in the land records.
6. You will know the history of the land, whether it belongs ultimately to the National Government or the County Government or a governmental authority such as the Export Processing Zones (in case of Leases), the number of years remaining on the Lease, or it belongs to the seller (in case of Freehold land).
7. You will know the rent payable to the National Government, if there is any.
• Check authenticity of documents
Cases of falsifed Wills, Letters of Administration of a deceased estate, and Letters of Allotment are rampant. Sale Agreements, Land Transfer documents, Title Deeds, Green Card and Share Certificates where the property was acquired through a land-buying company are known to be forged by cartels and con-artists. In case of agricultural lands in both urban and rural areas, the fraudsters have been known to forge Minutes of Land Control Boards (“LCB”), the Transfer Consent Letter from the LCB, and the Sub-division Consent Letter.
Things to do:
1. Request the court registry to confirm the authenticity of the Letters of Administration or Letters of Probate (if the owner had died and the “family” is selling the land to you), the seal and stamp of the court and the judge’s signature.
2. Request to peruse the court file for the succession matter to check the records there.
3. Request the County Government to confirm the authenticity of the Letters of Allotment, and if possible ask for copies of the Minutes of the county meeting that approved the allotments.
4. If possible, check and confirm with the advocate whose name and address is on the documents, whose stamp appears on the documents to confirm whether he/she indeed prepared and witnessed the documents. Bona fide advocates can easily be traced using Law Society of Kenya’s search engine at: https://online.lsk.or.ke/
5. Confirm the validity of the PIN Number of the seller and his/her name using the KRA PIN Checker at: https://itax.kra.go.ke/KRA-Portal/pinChecker.htm
6. Visit the particular LCB offices and confirm the authenticity of these documents and the signature.
Is a few hours of time more important than losing millions of your hard earned money that took you years and sweat to raise?
• Land rates and land rent
Using copies of the title deed you have been given by the seller, check the outstanding land rent on the land by logging in on your eCitizen account and navigating on to the Ministry of Lands section, or visiting Ardhi House in Nairobi if the land number cannot be found on the platform or visit the local land registry where the land is located. Check also with the relevant County Government the land rates outstanding. Land rent is paid to the National Government for GLA (Government Lands Act) and RTA (Registered Titles Act) lands while land rates is paid to the County Governments for all lands.
Some landowners do not pay the yearly land rent and land rates, thus accruing huge penalties. If you do not check and demand that the owner to settle all the rent and rates arrears on the land before selling to you, you will have a very hard time getting them to pay after you have bought the land or have to settle them yourself. Also, the arrears and penalties might stall the transaction for a long time since land registries will not complete the transfer until the amounts are settled and the seller provides Rent and Rates Clearance Certificates from the National and County Governments.
• Check authenticity of documents
Cases of falsifed Wills, Letters of Administration of a deceased estate, and Letters of Allotment are rampant. Sale Agreements, Land Transfer documents, Title Deeds, Green Card and Share Certificates where the property was acquired through a land-buying company are known to be forged by cartels and con-artists. In case of agricultural lands in both urban and rural areas, the fraudsters have been known to forge Minutes of Land Control Boards (“LCB”), the Transfer Consent Letter from the LCB, and the Sub-division Consent Letter.
Things to do:
7. Request the court registry to confirm the authenticity of the Letters of Administration or Letters of Probate (if the owner had died and the “family” is selling the land to you), the seal and stamp of the court and the judge’s signature.
8. Request to peruse the court file for the succession matter to check the records there.
9. Request the County Government to confirm the authenticity of the Letters of Allotment, and if possible ask for copies of the Minutes of the county meeting that approved the allotments.
10. If possible, check and confirm with the advocate whose name and address is on the documents, whose stamp appears on the documents to confirm whether he/she indeed prepared and witnessed the documents. Bona fide advocates can easily be traced using Law Society of Kenya’s search engine at: https://online.lsk.or.ke/
11. Confirm the validity of the PIN Number of the seller and his/her name using the KRA PIN Checker at: https://itax.kra.go.ke/KRA-Portal/pinChecker.htm
12. Visit the particular LCB offices and confirm the authenticity of these documents and the signature.
Is a few hours of time more important than losing millions of your hard earned money that took you years and sweat to raise?
• Land rates and land rent
Using copies of the title deed you have been given by the seller, check the outstanding land rent on the land by logging in on your eCitizen account and navigating on to the Ministry of Lands section, or visiting Ardhi House in Nairobi if the land number cannot be found on the platform or visit the local land registry where the land is located. Check also with the relevant County Government the land rates outstanding. Land rent is paid to the National Government for GLA (Government Lands Act) and RTA (Registered Titles Act) lands while land rates is paid to the County Governments for all lands.
Some landowners do not pay the yearly land rent and land rates, thus accruing huge penalties. If you do not check and demand that the owner to settle all the rent and rates arrears on the land before selling to you, you will have a very hard time getting them to pay after you have bought the land or have to settle them yourself. Also, the arrears and penalties might stall the transaction for a long time since land registries will not complete the transfer until the amounts are settled and the seller provides Rent and Rates Clearance Certificates from the National and County Governments.
Parting Shot
Land transactions may look simple but are complex in their simplicity. There is more to them than just buying and selling. You may know what to do but fail to know how to do it. You can thus seek the services of an advocate with a vast experience in conveyancing to help you navigate and sail through land transactions successfully.
Call us for more information.
Evans. 0737211490./0708668801
Abdallah 0722334710.
Visit us on https://web.facebook.com/kataniproperties
Listing an extensive range of houses, flats, bungalows, land and retirement homes, whether you're a first-time buyer, relocating or upsizing
