1. The first step is survey (positive identification). The qualified registered and experienced surveyor may also engage in other exercises i.e. sub-division, beaconing and mapping as and when necessary.
In case one is buying a parcel of land bearing a certificate of title in the case of freehold land (or certificate of lease in the case of leasehold property), a surveyor determines whether the land identified, is indeed the one stipulated on the title deed. He or she determines that the piece of land is up to the right estimate, and that it is indeed in the right location as shown.
In the case of sale of a huge piece of land in portions, the amputation of the land will be done with the help of the map on the deed plan so that the purchaser does not end buying the portion he or she did not select initially.
Once the surveyor is done, he or she issues a beacon certificate, which confirms that indeed the land on sale is the one on the title.
The next step is conveyance. In Kenya, a conveyancer (property lawyer) is the only one mandated to oversee property transactions.At the moment, Kenyan lawyers charge at least KES 25000 and a maximum of two per cent of the value of the property. In rural areas of Kenya, one may incur other legal costs (lawyer/commissioner of oaths/magistrate) e.g. in registering a sale agreement/swearing an affidavit especially in when the land in question involved a complicated succession process.
2. Official land search: This is the first step in conveyance. An official land search will determine the registered owners, the size of the land, presence of any encumbrances pertaining to the piece of land (cautions/buyer beware, entanglement in any court case, presence of a a caveat restricting sale of the land or whether it was used as security for credit in financial institutions) and mention in Ndung’u Report for illegal acquisitions.
To do an official search at the local county land office, the buyer needs a copy of the title deed of the land, which he or she will attach to a filled search application form, copies of ID card and those of Kenya Revenue Authority Pin certificate. The search costs KES 500.
In cases of leasehold land the vendor’s lawyer should avail rates clearance certificate from the county office and land rent clearance certificate from the Commissioner of Lands.
3. Sale agreement: The vendor and purchaser or their lawyers can now prepare the sale agreement at their discretion.
The law provides that the purchaser of the piece of land is to provide ten per cent of the purchase price of the land in question with the purchaser’s lawyer for the purchase of the land. The rest of the amount is to be deposited upon presentation of the completion documents.
The completion documents must be done within 90 days after the ten per cent deposit of the purchase price has been deposited with the buyer’s lawyer.
4. Transfer forms: The completion documents include the original title in the name of the vendor, duly executed transfer forms in triplicate. If the vendor is a company, the transfer forms must be sealed.
Other documents required are three passport photos of the vendor (an individual but if it is a company, three photos each of two directors of the company), a copy of the KRA PIN certificate of the vendor, a copy of Kenyan National ID card/Passport of the vendor. However, if the vendor is a company, copies of national ID cards of two directors who will sign the transfer forms would be required.
Also required is a copy of the registration certificate if the vendor is a company, a copy of the KRA PIN certificate of the company. For leasehold property, the rates clearance certificate and the rent clearance certificate would also be necessary.
5. As soon as the purchaser’s lawyer has confirmed that the documents are authentic and certified, the purchaser should pay the balance (90 per cent) prior to presentation of the documents to the relevant lands registration office.
The balance is deposited with the vendor’s lawyers alongside the previous ten per cent deposited earlier with the purchaser’s lawyer. After this, the purchaser’s lawyer should file the transfer documents with the relevant land authorities attaching a copy of the ID card, passport-size photos and copy of KRA PIN of the purchaser.
6. Assessment: After the transfer documents have been filed at the Lands office, an inspector visits the site to verify the development and state of the property.
Payment of Stamp duty: At the moment, the stamp duty is two per cent of the land value if land is in rural/agricultural area or in a township and four per cent if it is in a municipality or city.
The Stamp Duty Act states that documents must be stamped within 30 days of acquisition or invite a penalty.
The Lands Act and Registered Lands Act state that legal instruments such as leases, transfers, charges and mortgages will not be accepted unless they are duly stamped. This public revenue is paid to the Commissioner of Domestic Taxes.
It is mandatory to pay the stamp duty by depositing the specified amount in an account provided by the Land’s registry office.
Valuation: The collector of stamp duty can ask the valuation department in the Ministry of Lands to value the land if in doubt. The valuation may cost approximately KES 4000.
7. Application for consent for transfer: Duly filled in consent forms are submitted to a lands board seeking consent to transfer the certificate of title (or lease) from the vendor’s to the purchaser’s name.This may cost approximately KES 6000 according to a recent experience.
8. Issuance of a new certificate of title: Registration is effected with the issuance of a new certificate of Title (freehold) or Certificate of Lease (leasehold) in the vendor’s name to him or herself (or the agent thereof). Going by a recent experience, the registration costs KES 1500 while the certificate of title is issued against a fee of KES 500 payable to the county lands office.
Ideally, all costs related to conveyance should be borne by the purchaser save for the costs associated with the completion documents and the legal fees due to the vendor’s lawyer which should be borne by the vendor.
Note on conveyancing: In practice, some registered surveyors engage in conveyance in co-operation with some lawyers and commissioners of oath who provide attestation and other legal services at a fee.
We at InterCurrency have established reliable business relationships with selected professionals enabling us to offer our clients efficient services in acquiring or disposing land (real estate). We employ the tried, tested and approved Solid Rock Conveyance Procedures.
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Summary of documents needed
a) Original certificate of title (or lease) in the vendor’s name.
b) Three passport sized photographs each from vendor and purchaser
c) Copies of ID cards/passports of vendor and purchaser
d) Copies of KRA PIN certificates of both vendor and purchaser (PIN is obtainable from KRA)
e) Duly signed consent and transfer forms (forms are obtainable from county lands office)
f) Duly signed sale agreement (agreement is drafted by lawyers)
You can obtain a tried and tested draft sale agreement on request from InterCurrency at a reasonable fee. We can also avail copies of consent and transfer forms issued by county lands offices in Kenya. Get in touch with us as soon as possible using our details on the contact page.