Land is a very valuable fixed asset that you can effortlessly buy and own in Kenya. The following are the important procedures that you need to know on how to buy land in Kenya.
Search and inspection of the title
Once you have identified a possible good piece of land, visit the lands registry in order to carry out a land search on that parcel. A title deed from the seller is needed. This allows you to know if it has been flagged.
Prepare Offers and Price Discussions
If the lands registry clears the parcel of land, then you can move on to the negotiations table. Furthermore, prepare a letter of offer or intent. This details the form of payment and other details. To avoid complications, get an advocate to do all this.
Sale Agreement and Deposit of funds
The offer needs a total contract from the buyer and seller’s side. They should all conform to this. Advocates from both sides need to approve and okay the whole process. The agreed deposit is sent to the seller’s bank account through the advocate’s account.
Payment of Land rates
A buyer should be aware of the necessary land rates to avoid issues with the government. Land rates depend on the county of the land sale.
Transfer of Documents
The seller’s advocate should handle this process. They need to prepare transfer documents following the consent of transfer has been allocated by the commissioner of lands.
An application of valuation needs to be done from a government valuer. They visit the land and come up with a valuation report. Stamp duty is very important.
Payment of Stamp Duty
The buyer is required to pay this tax due to the government. It is a tax that is paid on all lands.
Registration of Transfer
This is where legal ownership of the parcel of land takes place.
Exchange of Documents
Once relevant documents are out, the land seller and buyer are required to transfer everything that is remaining thereon.
This is also best addressed by an advocate to avoid any issues.
And this is the process of buying land in Kenya step by Step.