The Process of Buying Property in Kenya
Scammers are real. People have lost millions of their hard-earned money in real estate. Unfortunately, most are unaware of the process of buying real estate in Kenya and thus fall for scammers’ sweet lies.
If you follow this process when buying a property in Kenya, land, or a house, you will save time and money and buy something legitimate. Unfortunately, most buyers don’t know the process.
Today we are discussing the process you must follow when buying a property in Kenya.
1. Ask to see the Title Deed or a Copy of the title deed.
You have already visited the property and negotiated the price with the owner. You can now ask to see the title deed or a copy of the title deed as you write the sales agreement.
Once you have the title copy, search the ministry of lands to confirm who the real owners are or if the title has any CAVEAT. The search will cost you Ksh 520.
2. Search with Local Authorities
You will need to search with the local authorities to check for any unpaid land rates. You can move forward with the sales agreement if there are no great land rates. If the property has due land rates, the seller and the buyer can agree on who will settle the land rates.
It is important to note that transferring land with impending land rates is impossible.
3. Visit the Ministry of Lands and Buy 2 Maps
Visit the ministry of lands and get yourself two maps, one showing the exact measurements of the piece you are buying, called (mutation), and the other showing the neighbouring lands—each costing Ksh 350.
These maps will give you a clear picture of your plot size and the neighbouring land.
4. Write down an agreement.
Sit down with your seller and bargain for a price. The agreement can be done in the presence of a lawyer.
According to the Law Society of Kenya [LSK], if the value of the land is below Kshs 1 million, you pay the lawyer Kshs 3000. If it’s over Kshs 1 million, you pay the lawyer Ksh 8,000 for the agreement. Avoid being CONNED by Hungry lawyers.
5. Pay some amount as per your agreement.
When drafting a sales agreement, set a certain amount of down payment you will pay first. It is advisable to pay part of the whole amount despite having the entire amount.
6. Book a meeting with the lands control board
The lands control board [LCB] issues consent for land to be sold. They meet monthly to book with them to get permission for the land you buy. Ito book with LCB will cost you Ksh 1000.
7. Pay the Balance
Once you consent from LCB, you can now pay the remaining balance.
8. Change Ownership
To change the land ownership, go to the ministry of lands offices with your KRA PIN, two passport photos, and a copy of the TITLE DEED to change ownership. You will have the seller accompany you.
The process will cost you Ksh 5000.
9. Pay for Stump Duty
At this stage, you don’t need the seller. Pay your stamp duty according to the value of your land—4% sale value for municipalities and 2% value in reserves.
You have completed the buying process of buying land in Kenya, and the land belongs to you. It’s essential to ensure the transfer was updated by going to the lands ministry and doing the land search to know if the ground now reads in your name.