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How To Not Get Conned When Buying Land In Kenya

BY Jane Muia · February 20, 2023 01:02 pm

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:

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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

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