How To Not Get Conned When Buying Land In Kenya

KEY POINTS
Scammers have realized the growing interest in land ownership among investors and are now jumping up to trick first-time land buyers, who are not as familiar with the nuances of the closing process.
KEY TAKEAWAYS
The government estimates that about 60 billion shillings are lost annually to land fraud pointing out the need for investors to be on the lookout to avoid falling into the traps of scammers. Experts advise that first-time landowners should get professional advice from a lawyer to make the exercise easier.
If you have ever been conned you know the feeling that rush in. The sinking feeling in your chest, the shame or embarrassment, and the anxiety about what to do next. Anyone can be scammed and coping with the aftermath of being scammed is not easy.
Scammers have realized the growing interest in land ownership among investors and are now jumping up to trick first-time land buyers, who are not as familiar with the nuances of the closing process. The fraud has become so entrenched that many investors are living a nightmare. Some of the tricks these scammers use include identifying ‘‘idle land’’ — owned by the government or private developers — and colluding with crooked surveyors and Lands ministry officials to subdivide it and sell it off to unsuspecting buyers.
The government estimates that about 60 billion shillings are lost annually to land fraud pointing out the need for investors to be on the lookout to avoid falling into the traps of scammers. Experts advise that first-time landowners should get professional advice from a lawyer to make the exercise easier. Moreover, it is always good to listen to people who have successfully bought land before as they understand the due diligence. With a firm understanding of the most common pitfalls when buying land, you can increase your chances of getting residential land to build your home or start another project.
So if you are buying land from an individual or a group, please follow the following steps:
- Ask to see the title deed or copy of the title deed.
A title deed is the only way that you can tell the rightful owner of the land so if your seller doesn’t provide it, chances are you are getting conned. If the seller provides the title deed, 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.
- Research with the local authorities to check for any unpaid land rates.
Land rates are the tax imposed on every parcel of land by the county government. Before buying land, it is important to ensure the seller has settled all the land rates. If any, agree with the seller on who will settle the debt. Note that land can’t be transferred if there are unpaid land rates.
- Land Mapping
Go to the ministry of lands and buy 2 maps, one showing the exact measurements of the piece u are buying (called a mutation) and the other showing the neighboring lands. Each costs around 350 shillings. With your 2 maps and a surveyor (you can even do it yourself), visit the land you are buying and verify the details on the map. Check out all the beacons.
- Bargain the price.
The next step is to 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 be written by a lawyer. According to the Law Society of Kenya (LSK), if the value of the land is below 1 million shillings, you pay the lawyer 3,000 shillings. If it’s above 1 million shillings, you pay 8,000 shillings for the agreement.
- Don’t pay All Amounts.
Don’t rush to part ways with your money. Pay some amounts as per your agreement just to ensure you are on the safe side. The balance should be paid once the Lands Control Board gives a nod to the sale of the land.
- Book a meeting with the lands control board(LCB).
This board consists of the assistant county commissioner and the local village elders. Their main objective is to prevent the seller from selling land that was instructed never to be sold. Also, one cannot sell land without the spouse giving consent. The spouse MUST BE present! LCB will issue consent for the land to be sold. LCB meets once a month. It will cost you 1,000. But there is a special LCB meeting which you can book for 5,000 shillings.
- Pay the remaining balance
With the consent from LCB, a recent search(not more than 6 months), a clearance form from County land rates, your 2 maps, the agreement, KRA PIN, 2 Passports, and a copy of the title deed, go to the ministry of lands to change ownership. This will cost you about 5,000 shillings.
- Pay Stamp duty
At this stage, you no longer need the seller. Now go and pay stamp duty per the value of the land. The value of the land will determine the amount of money you will pay for stamp duty. About 4 percent of the land value will go to the municipalities while 2 percent will go to the reserve.
Related Content: Before Buying A House, These Are Things To Consider
- January 2025 (118)
- February 2025 (74)
- January 2024 (238)
- February 2024 (227)
- March 2024 (190)
- April 2024 (133)
- May 2024 (157)
- June 2024 (145)
- July 2024 (136)
- August 2024 (154)
- September 2024 (212)
- October 2024 (255)
- November 2024 (196)
- December 2024 (143)
- January 2023 (182)
- February 2023 (203)
- March 2023 (322)
- April 2023 (298)
- May 2023 (268)
- June 2023 (214)
- July 2023 (212)
- August 2023 (257)
- September 2023 (237)
- October 2023 (264)
- November 2023 (286)
- December 2023 (177)
- January 2022 (293)
- February 2022 (329)
- March 2022 (358)
- April 2022 (292)
- May 2022 (271)
- June 2022 (232)
- July 2022 (278)
- August 2022 (253)
- September 2022 (246)
- October 2022 (196)
- November 2022 (232)
- December 2022 (167)
- January 2021 (182)
- February 2021 (227)
- March 2021 (325)
- April 2021 (259)
- May 2021 (285)
- June 2021 (272)
- July 2021 (277)
- August 2021 (232)
- September 2021 (271)
- October 2021 (304)
- November 2021 (364)
- December 2021 (249)
- January 2020 (272)
- February 2020 (310)
- March 2020 (390)
- April 2020 (321)
- May 2020 (335)
- June 2020 (327)
- July 2020 (333)
- August 2020 (276)
- September 2020 (214)
- October 2020 (233)
- November 2020 (242)
- December 2020 (187)
- January 2019 (251)
- February 2019 (215)
- March 2019 (283)
- April 2019 (254)
- May 2019 (269)
- June 2019 (249)
- July 2019 (335)
- August 2019 (293)
- September 2019 (306)
- October 2019 (313)
- November 2019 (362)
- December 2019 (318)
- January 2018 (291)
- February 2018 (213)
- March 2018 (275)
- April 2018 (223)
- May 2018 (235)
- June 2018 (176)
- July 2018 (256)
- August 2018 (247)
- September 2018 (255)
- October 2018 (282)
- November 2018 (282)
- December 2018 (184)
- January 2017 (183)
- February 2017 (194)
- March 2017 (207)
- April 2017 (104)
- May 2017 (169)
- June 2017 (205)
- July 2017 (189)
- August 2017 (195)
- September 2017 (186)
- October 2017 (235)
- November 2017 (253)
- December 2017 (266)
- January 2016 (164)
- February 2016 (165)
- March 2016 (189)
- April 2016 (143)
- May 2016 (245)
- June 2016 (182)
- July 2016 (271)
- August 2016 (247)
- September 2016 (233)
- October 2016 (191)
- November 2016 (243)
- December 2016 (153)
- January 2015 (1)
- February 2015 (4)
- March 2015 (164)
- April 2015 (107)
- May 2015 (116)
- June 2015 (119)
- July 2015 (145)
- August 2015 (157)
- September 2015 (186)
- October 2015 (169)
- November 2015 (173)
- December 2015 (205)
- March 2014 (2)
- March 2013 (10)
- June 2013 (1)
- March 2012 (7)
- April 2012 (15)
- May 2012 (1)
- July 2012 (1)
- August 2012 (4)
- October 2012 (2)
- November 2012 (2)
- December 2012 (1)