By Ian – Head of Legal, Optiven Group
Acquiring land titles in Kenya is a process that is predictable and measurable as it is provided by law. The transfer of land in Kenya is governed primarily by the Land Act, 2012, the Land Registration Act, 2012, and the Stamp Duty Act. The process is systematic and involves multiple steps with various government agencies. The timeline is not fixed and can vary significantly based on the complexity of the transaction, efficiency of the involved parties, and the workload at the registries.
In this article, we shall look at the importance of a title and the process of acquiring title for purchased land in Kenya.
WHAT IS A TITLE TO LAND?
The Constitution of Kenya,2010 recognizes a Title as proof of ownership of Land in Kenya. This ownership of land is protected by the same constitution and provided for by law through various acts of parliament. Under the Constitution and our land laws, privately owned land can either be freehold or leasehold.
JOURNEY TO THE TITLE DEED
1. Pre contracting
- Before Purchasing land, the Purchaser must first satisfy themselves of the sufficiency of the land and be certain that the property has a good title or the title is being processed.
2. Contracting
- A sale agreement is prepared, stipulating terms, purchase price, completion date, and obligations of each party. It becomes binding upon signing.
3. Completion
- After the Agreement for Sale has been signed by all the parties to the transaction, the Seller has the responsibility of ensuring that all the documents needed for the successful registration of the transfer of title in favor of the purchaser are available.
- On the other end the Purchaser has the responsibility of ensuring that the balance of the purchase price is available for payment to the Seller. All this ought to be done before the completion period lapses. The completion period and payment periods are dictated by the agreement for sale.
- The Completion documents include but are not limited to: the Original Title for the Property in the name of the Vendor, Signed and filled transfer forms, copies of the seller’s Identification card or certificate of incorporation (where the seller is a Company), consent to transfer and the Seller’s Ardhisasa ID Number.
- For agricultural land, consent to transfer from the Land Control Board must be sought within the locality. As a Purchaser, you are required to sign the transfer forms as provided and submit your Ardhisasa ID.
4. The Registration process
- The Land Registration Act No. 3 of 2012 requires that any party claiming ownership over land ought to register their rights in the Property. The Act further provides that a certificate of title over property is evidence of ownership of that Property. It is therefore a requirement under the Kenyan laws to have property that you have acquired registered in your name or that of your assigns.
- For successful registration, the Purchaser or their Advocates shall cause the Property to be valued by a government valuer for the purposes of computing and payment of Stamp Duty. This is exclusively now done on ardhisasa.
Stamp Duty
- This is tax that is payable in transfer of Property pursuant to the Stamp Duty Act, Chapter 480 of the Laws of Kenya. For properties within municipalities the stamp duty payable is computed at 4% of the Purchase Price. For properties outside municipalities the stamp duty shall be 2% of the value of the property.
- Once stamp duty has been charged and paid for, the registration may commence by submitting the Application to the relevant registry together with all the completion documents. The registrar of lands being satisfied with the application shall issue a new title to the Purchaser and register the entry of the transfer in the register of the Property.
Conclusion
- As demonstrated above, the process of purchasing land in Kenya has been simplified over the years and is much more convenient. At Optiven Limited, we offer you an opportunity to invest in value added real estate products conveniently and strategically placed across the country. We invite you to engage with us in realizing your dream to own land and shall be glad to guide you through the steps.
- To simplify the land acquisition process for our clients, we offer to do the transfers to you. To learn more on our transfer offers for our properties please reach out to us on 0790300300 or email us at info@optiven.co.ke.
Disclaimer
The content of this document is intended to be of general use only. For specific legal advice on Optiven Limited Real Estate Investments please do not hesitate to through the contact details provided. This opinion is based on general principles of Kenyan law. The specific timeline for any transaction can vary.
Sources:
- The Constitution of Kenya,2010
- Land Act, No. 6 of 2012
- Land Registration Act, No. 3 of 2012
- Stamp Duty Act, Cap. 480
- Ministry of Lands Registry Guidelines
