In Kenya, buying land is very risky as brokers could sell you thin air in the name of land but information is power, in this article you will get just that.
One is required to do thorough research before drowning their life savings into a scam. Unlike buying a product from the supermarket, buying of land is a process that requires due diligence, patience and the right information at hand.
Land used to be affordable before, it is currently one of the most valued assets in the country with ridiculous prices that could literally drive anybody into depression if conned. Below is the process of acquiring land in Kenya whether from a group or an individual with charges of how much one needs to part within every stage.
Ask to see the title deed or copy of the title deed. Then do a search at the ministry of lands to confirm who the real owners are or if the title has any Caveat on it. The search will cost you 520 shillings.
Do a search with the local authorities to check of any unpaid land rates. If any, agree with the seller on who will settle the debt. Please note that land can NOT be transferred if there are unpaid land rates.
Go to the ministry of lands and buy 2 maps, one map will be showing the exact measurements of the piece you are buying which is called mutation while the other will be showing the neighboring lands. Each map will cost you 350 shillings.
With your 2 maps and a surveyor, you could easily do it yourself though, visit the land you are buying and verify the details on the map. Check out all the beacons.
Sit down with your seller and bargain the price. Write down an agreement. The agreement can be done before a lawyer or you may decide to do it yourself. It’s not a must to have it written by a lawyer though it is advisable so as not to overlook anything as they tend to be more conversant with such matters.
According to the Law Society of Kenya (LSK), if the value of the land is below 1 million shillings, you pay the lawyer 3000 shillings. If above 1million shillings, you pay 8000 thousand shillings for the agreement.
Pay a certain percentage of the agreed money as per your agreement. The land is no loaf, do NOT pay everything at once whether or not you can afford.
Do NOT pay in cash at any one point, do a bank transfer to the seller or pay directly to his or her account. This will be evidence of you paying and to who you paid. The seller could easily deny ever receiving any money from you if there is no record, this is irrespective of whether they look like honest beings or not.
Book a meeting with the lands control board (LCB). They meet once a month. It will cost you 1,000 shillings. There is also a special LCB meeting which you can book at 5000 shillings. LCB will issue consent for the land to be sold.
Pay the remaining balance after getting consent from LCB.
With the consent from LCB, a recent search (not more than 6 months), clearance form from County land rates, your 2 maps, the agreement, KRA PIN, 2 Passports and copy of the title deed, go to the ministry of lands to change ownership. Cost 5000 shillings.
At this stage, you no longer need the seller then go pay stamp duty which is dependent on the value of the land.
4 percent of sale value in municipalities
2 percent in reserves
Congratulations! You are now a landowner BUT before throwing that party, go to the ministry of Land and do a search to confirm if it really reads your name, after all this is Kenya.
Your spouse MUST BE present! Both the seller and buyer if indeed married. I will tell you why the spouse must be present in the next article. If one of your resolutions in 2019 is owning a piece of land, it is possible.