by Georole Ltd | Apr 23, 2023 | land survey
The important key steps to follow in purchasing land includes; land identification, search, sale agreement, transfer, stamping and the registration of the transfer.
Land Identification
The prospective buyer identifies a piece of land that meets their criteria including size, location, soil type among other factors. Are you looking for a land to buy? click here to identify a land of your choice.
Search at the lands registry
- Carry out an official search at the county registry. The search indicates the ownership and status of the land. One needs to have a copy of the title to the land that you intend to do the search.
- You will have to fill a search application form and attach on it single copies of the title deed, ID card and PIN certificate and pay Kshs.500/- at the registry and get an official receipt.
- The search will give you the following information; The registered owner, Its size, Any encumbrances against the land, for instance cautions, caveats. It will further show the title and search numbers, date the search was done, nature of title (freehold/leasehold), approximate area in hectares, name and address of proprietor and whether a title has been issued. A title with any unresolved issues of the above is not transferrable.
- The search results must be signed and sealed by the registrar. If all is clear, then you may proceed to the next step which is writing a sale agreement.
Sale agreement
The purchaser may appoint a lawyer to represent him in the signing of the agreement. The sale agreement is prepared by the seller’s lawyer and it indicates the terms of sale including the names of the buyer and seller, price of the land, mode of payment and documents to be supplied by the seller to facilitate registration of the transfer of land to the buyer.
At this point, the buyer may be required to pay a deposit with the balance payable within 90 days after signing of the sale agreement. After the parties have signed the sale agreement, the document must then be stamped to make it legally binding.
Transfer and procurement of completion documents
- The transfer document is usually prepared by the buyer’s advocate and approved by the seller’s lawyer.
- The seller is supposed to procure the completion documents at his costs, including the: original title deed, 3 copies of transfer of land duly completed by the seller, ID Card, certificate of registration of the seller and PIN certificate, 3 passport size photos of seller (if company, photos of two of its directors) land rent clearance certificate (for leasehold
land) rates clearance certificates, and consent to transfer and valuation form duly completed by the seller.
- The document should also be signed by the buyer who is also required to produce copies of his ID card, PIN certificate and passport photos.
Stamping the transfer
- The buyer then applies for the valuation of the land by the government valuer using valuation form duly completed by the seller. Lands office will use these documents to determine stamp duty payable.
- The stamp duty should be paid to the commissioner of domestic taxes usually through the National Bank or any other appointed bank.
- Once the payment is done, the buyer should lodge the documents at the lands office for stamping with duty.
- Thereafter, the buyer should book the following documents for registration: Title deed; land rent and rates clearance certificates, valuation report, consent to transfer, stamp duty declaration and pay-in-slip.
Registration of the transfer (final of the steps to follow in purchasing land)
This is the last process of the land purchase and it involves the registration of the transfer in favor of the buyer.
by Georole Ltd | Feb 25, 2023 | land survey
Land registration is any of various systems by which matters concerning ownership, possession, or other rights in land are formally recorded (usually with a government agency or department) to provide evidence of title, facilitate transactions, and prevent unlawful disposal.
Picture this: you’re browsing your favourite social network, and you spot an advertisement for a piece of ‘prime property’, ‘good for development’, with a ‘ready title deed’, and what’s more, the price is just within the limits of your pocket! You laugh and think to yourself, ‘Kwani someone is spying on me? Wasn’t I just telling someone the other day how I need to buy a piece of land?’ (Let’s also assume that they’re genuine as well). You call the number provided, set up an appointment and in a few days you’re seated in a plush office within the city, ready to begin the process. They issue you with a document known as a Letter of Offer, or Heads of Terms, which contains all these legalese terms and also requires your signature, and the attestation of an Advocate, before they can proceed. What next?
land registratin process
First off, we advise you to retain the services of an Advocate to act on your behalf as the buyer. You can do this through referrals or through searching for the one closest to you on the LSK Search Engine here or here. In some instances, it is possible to have one Advocate act for both buyer and seller, provided there will be no conflict of interest. The purpose of retaining an Advocate is to have them break down the legalese into simple terms as well as secure your best interests in the transaction. Once you’ve retained an Advocate, their actions include:
- obtain an official postal search of the property, to ascertain, among other things, the legal ownership of the property, that the title is clean, that there are no impediments to transactions on the property (these are called encumbrances), and that the seller has the right to sell the property.
- attest the Offer Letter/Heads of Terms document you received, signifying your acceptance of their offer to buy the property from the seller and your willingness to proceed with the transaction. It is important to note that this document is not a binding contract, but denotes the intention of the undersigned parties to enter into a binding contract. To this end, at the top of the document, there should be the words ‘Subject to Contract’ written clearly (and in uppercase, if possible).
Note: The required documents to obtain an Official Search are a copy of the Title, which the buyer’s Advocate (your Advocate) gets from the seller or his Advocate, and a copy of the National Identity Card of the person applying for the search. This could be the Advocate themselves or one of their employees. The search is done at the applicable Land Registry Office. Let’s assume our piece of land is situated in Nairobi and its environs. The search would then be conducted at the Central Registry, which is situated at Ardhi House. Once they present themselves at the Registry, they will fill the required Land Search Application Form, and pay the search fee, which is K.Shs 500. They will then present the Form, Copy of Title and ID, and the receipt issued at the Registry Counter for the search to be conducted on the property. This process takes roughly two to three days, after which you can obtain the Official Search.
- The seller’s Advocate will then draft an Agreement of Sale and forward it to your Advocate for correction (where necessary) and execution (signature) within 14 days. Within these 14 days, the buyer’s Advocate (your Advocate) will draft a Transfer Instrument and forward the same to the seller’s Advocate for correction and execution, while also requesting them to provide them with Transfer Documents (also known as Completion Documents) for verification. The basic Transfer Documents are:
- The original Certificate of Title (or Lease, if applicable) for the property;
- Consent to Transfer from the National Land Commission (this takes roughly nine to twelve days to process, at a fee);
- Land Rent Clearance Certificate for the property, together with the Land Rent Payment Receipts;
- Land Rates Clearance Certificate from the relevant County Authority, together with the Payment Receipts;
- The Transfer Instrument, duly executed by the seller;
- The duly executed Sale Agreement, outlining the parties to the sale, the full description of the property, Advocates’ details, the selling price, how and when it is to be paid (including date of receipt of each instalment, where necessary), deposit amount and how it is to be held, date of completion and mode of termination of agreement, and what may lead to the said termination;
- Certified copies of the Seller’s I.D. and PIN Certificates;
- An affidavit of Spousal Consent to Sell by the seller’s spouse, or an Affidavit by the Seller stating that no spousal consent is necessary for the transaction.
Payment of Stamp Duty
Stamp Duty is a key requirement during land registration. It is tax payable, according to the Stamp Duty Act, on all land transactions involving change of ownership either through consideration (payment), gift, or partition of land, except where otherwise stipulated by the law. There are two stages of payment of Stamp Duty, the assessment and valuation stage, and the actual payment of Stamp Duty. The assessment and valuation stage of this process is usually handled by the Buyer’s (your) Advocate. The documents required and prepared by the Advocate are:
- The requisite application for valuation form in quadruplicate;
- A copy of the Official Land Search;
- The executed Transfer document;
- A certified copy of the Deed plan/route sketch/site map (as the situation requires);
- The buyer and seller’s passport pictures.
These documents are to be presented at the rightful counter at the Lands Office for assessment, with one copy of the application form retained by the applicant for follow up purposes. The assessment of the presented documents take about a maximum of two weeks.
Site visit of the property. The physical presence of the Government Valuer and the Registered Owner at this visit is mandatory. The purpose of this visit is to ascertain the actual value of the property vis a vis the declared value or the selling price. This is where assessment and valuation of the property takes place.
A brief valuation report is entered into the application form (above), and together with the valued Transfer document, is returned to the Lands Office for collection by the applicant. The Assessed Value and Duty Payable is indicated on the first page of the Transfer document.
Once valuation and assessment are complete, we move to the actual payment of Stamp Duty. It is usually charged at 4% of the value for leasehold properties situated within cities, towns or urban areas, and 2% of the value for freehold properties situated outside of cities, towns or urban areas. Stamp Duty must be paid within 30 days of assessment of value. Note: In Kenya, Stamp Duty is paid on the KRA’s iTax platform.
The Seller, individually or through their Advocates, using the Seller’s iTax profile, generates a Payment Registration or PRN form, for the payment of Capital Gains Tax, which is the tax on whatever profit made on the transaction – the difference between the selling price and the assessed value (known as the Capital Gain). This form has an acknowledgement number indicated on it. The form is then presented to a bank of choice by the Seller’s Advocate or agent for the payment of the amount indicated as CGT. Upon payment of CGT, the Buyer’s Advocate obtains the PRN form from the Seller’s Advocate, and using the acknowledgement number therein, generates a separate PRN form using the Buyer’s iTax profile for the payment of Stamp Duty. This PRN form is also presented to a bank of choice by the Buyer’s Advocate for the payment of the indicated amount.
Once Stamp Duty is paid, the assessed documents are presented at the relevant Registry Office by the Buyer’s Advocate or their agent for franking. Franking refers to the placement of an official mark by the relevant authority (in this case, the Collector of Stamp Duty) to indicate that the required tax has been paid or does not need to be paid (i.e., the instrument is exempt). The required documents for franking are the Transfer Instrument and its two Counterparts (Original copies), and the Stamp Duty Payment Receipt (both the form from iTax and the bank receipt). The franking process takes two to four days.
Once all these processes are complete, we can now proceed to registration. This is done by the Seller’s Advocate. An Application for Registration form (also known as a Booking Form) is filled, in triplicate while enclosing:
- The Transfer Document in triplicate;
- The Official Search Certificate;
- Consent to Transfer from the relevant authority;
- The Land Rent Clearance Certificate;
- The Land Rates Clearance Certificate;
- Certified copies of the I.D.s and PIN Certificates, together with passport pictures, of both the buyer and the seller.
Upon presentation at the Registry Counter, an application fee of K.Shs. 500 is charged and collected. The officer at the counter then verifies that the documents enclosed are those declared on the form, stamps all copies of the Booking form and returns one copy of the form to the applicant, with a Daybook Number clearly indicated on it. (The Daybook Number is the entry of that particular transaction, in this case, booking for registration, recorded in the events of that particular counter on that day, as they occur. The time is also recorded).
The Registration process should take 7 – 21 days, and the Advocate or their agent ought to keep following up at the counter using the Daybook Number provided.
Finally, once the documents are ready, the Advocate or their agent presents their copy of the Booking Form at the counter and receives the Transfer Document, in triplicate, registered in favour of the Buyer, together with a Certificate of Title, in the Buyer’s name. These documents are later given to the Buyer for their records and safekeeping.
Conclusion and Recommendation
The process outlined above details the most basic procedure followed while purchasing and registration of land, and we can also replace the term ‘land’ with ‘apartment’, although there would be an additional process included should one be using financing from a lender. Remember, always seek legal advice from a qualified Advocate or Land experts before getting into any contract or agreement so as to properly secure your rights and to better understand all the issues involved in the transaction.
Now, go forth and buy that property and check off ‘buy land/property’ from your bucket list!
by Georole Ltd | Oct 25, 2022 | land survey
It is very important for someone to ensure that he/she go for the best deal at all times when buying a land. If some important factors are ignored, to find an ideal land becomes a big challenge and the buyer may end up regretting. By reading this article you will learn about the important things you should consider before buying a land.
The important factors to consider when buying a land
- Zoning Regulation: before setting out to buy a piece of land, ensure to find out the zoning regulations for the surrounding area, and the property itself. The relevant authorities i.e., county governments have rules which states what a piece of land can be used for, whether it be agricultural, commercial, industrial, or residential. If your neighboring land can’t turn into a factory in 5 years, it might not be a great idea to build your secluded getaway there. This is important since it helps you to determine whether your intended development is compatible with the registered use of the land you are about to buy thus avoiding extra costs of processing change of use as well as mitigating the risk of restrictions from developing.
- Utilities accessibility: determine whether basic utilities such as water, electricity, gas and any other utility you may require are readily available or can be easily accessible. find out what companies can provide you with the utilities. The rates that you get will depend on the location of the land, so make sure that the information is accurate, and that you can access it all times. I recommend that reach out to the service providers via phone and ask for quotes as well as consider seeking help from locals in the area about their satisfaction with the local utilities.
- Market value of the land: this will help in understanding the economic situation of the area of investment. As an investor, it is important to understand how the growth pattern, the appreciation rates, and the use of the land for a period of time. Land is the most valuable form of asset investment in the real estate market. In most cases urban land has a much higher price in both the short and the long run. The market value of land is the main pillar which profit in real estate investing depends on. Also, by determining the land value (involve land valuer) you are able avoid over charging when purchasing a land. Read more about valuation
- Security: Take your time to find out whether there is adequate security i.e. police station or posts within the neighborhood. Do not buy land if the locality experiences criminal and social injustice activities such like robbery, theft and or kidnapping.
- Security of tenure: Make application for a postal land search at the land registry office of the locality. This is important to identify the registered owner of the land; Whether there are any incumbrances against the land e.g. caveats or cautions put on the title deeds due to disputes on the land or pending court cases regarding the land; Whether there is a charge on the land, in cases where the title deed has been used as collateral for securing a credit facility/ loan with a financial institution like a bank, etc. The search will also indicate the size of the land.
- Climate: the temperature highs and lows, rainfall amount and intensity, and seasonal changes are important factors one has to give priority when determining what land to buy. Climate can affect various aspects of life, such like; health conditions like asthma that are affected by temperature, energy usage, right type of kit home for your block of land, Potential for extreme weather conditions e.g., frost and drought, growth of vegetables and plants as well as type of crops one can grow and finally, home insulation. read more about climate.
- Social & Physical Infrastructure: Depending on your intention of use, infrastructure plays a key role in day to day activities of a developer. e.g. schools, hospitals, markets, dispensary, religious centers.
- Land characteristics: This entails soil type, topography,
- Type of intended development
earth road – not convenient during raid season.
Tarmac road – very convenient and recommended.
by samson | Oct 7, 2022 | land survey
land succession is the most common channel by which one can acquire or legally inherit and own land in Kenya. It is a traditional right to inherit property for the purpose of preserving the family heritage. In most cases, Kenyans rarely follow the law and instead transmit land rights upon death. Therefore, many inheritors avoid to follow the process of acquiring the actual title deeds as they consider the process of legal land succession to be expensive, tedious, inaccessible and complex. Read this article for more information or partner with us for legal land inheritance or acquisition.
This Article explains the processes that should be employed by the deceased’s dependents in order to obtain rights over the deceased’s property smoothly and efficiently. You can as well download Law of Succession Act to read more.
What is succession?
- Succession is the right and transmission of the rights and obligations of the deceased to his heirs.
- Kenyan law of succession prescribes the rules which determine what ought to happen to a person’s estate after his or her death. It is also referred to as the law of inheritance i.e. transmission of property rights from the dead to the living.
- The rules of succession identify the beneficiaries entitled to succeed to the deceased’s estate and the extent of the benefits they are to receive. The Kenya law of succession determines the different rights and duties that persons (for example, beneficiaries and creditors) may have in a deceased’s estate.
Types of succession
- Intestate succession: is where a person dies without having made a will or the will is invalidated. The procedure involves having the Administrators obtain a grant of Letters of Administration Intestate. This gives them the authority to deal with the estate of the deceased person in accordance with the provisions of the law. The processes of obtaining a grant of Letters of Administration Intestate are through a petition for Letters of Administration Intestate and receiving a Confirmation of Letters of Administration Intestate.
- Testate succession: refers to situations where the deceased leaves behind a valid will declaring his or her intentions regarding the disposition of his property after his death duly made and executed in accordance with the law of succession Act. The procedure involves the executors or executrices obtaining a grant of probate which gives the executors or executrices the authority to handle any matters pertaining to estate of the deceased person in accordance with the provisions of the Act . The processes of obtaining a grant of probate are through a petition for grant of probate and thereafter receiving a confirmation of grant of probate.
Procedure for procurement of grants for land succession
- The executors of the deceased person’s estate will be required to petition the High Court of Kenya for a Grant of Probate. The petition is accompanied by an affidavit which must include a schedule of the assets and liabilities of the deceased person’s Estate with their approximate value. Proof of ownership of the assets must also be attached.
- The petition is then filed at the Family Division of the respective High Court and the Court Registrar peruses the petition to check if it is in order and thereafter, assesses the filing fees due and payable to the Judiciary of Kenya. Upon payment of the filing fees, a notice of the petition is advertised in the Kenya Gazette so as to notify the public of the petition and for any person who has a claim on the estate of the deceased to have an opportunity to object to the Grant of Probate being given to the executor.
- After 30 days of the notice of the petition appearing in the Kenya Gazette, an application for extraction of the signed and sealed Grant of Probate – which will indicate the executor(ices) as the lawfully appointed executor(ices) of the Estate – should be made by the executor(ices) to the High Court.
Note: In testate succession, you need to file the following documents:
- Form P.A 78 (petition)
- Form P & A 3 (affidavit)
- The original will plus 2 photocopies of the will
- Original death certificate.
Confirmation of grant of probate:
Upon issuance of the signed and sealed Grant of Probate, the executor(ices) must wait for the statutory 6 months’ period to lapse before applying for the Grant to be confirmed after which he/ she/ they will be issued with a Certificate of Confirmation of Grant of Probate and this Certificate gives them power to transfer the Estate’s assets in accordance with the provisions of the Will.
Petition for letters of administration intestate
- There should be at least 2 persons who must petition the High Court for Letters of Administration Intestate. Preference is usually given to the surviving spouse but this does not prevent the adult members of the family from agreeing amongst themselves on who to petition the court if a surviving spouse is not in a position to do so. The petition should be filed at the nearest High Court to where the deceased person resided at the time of his/ her death.
- The petition for Letters of Administration Intestate is a formal legal document which must be accompanied by an affidavit in support from the petitioners. The petition should include a schedule of the assets and liabilities of the Estate with the approximate values, proof of ownership, the deceased’s death certificate and a letter from the chief in the locality of the deceased’s place of domicile stating that the chief knew the deceased person and giving details of the estate’s beneficiaries and dependents as known to him.
- It is a mandatory requirement for the petitioners to swear affidavits of justification satisfying the court that the petitioners are solvent and are able to comply with their obligations as Administrators. It is also a mandatory requirement for the petitioners to obtain other independent persons to be sureties for the full value of the net Intestate Estate who in turn will have to satisfy the court as to their solvency.
- The petition is then filed at the Family Division of the respective High Court after which the Deputy Registrar will peruse the petition and assess its filing fees which is payable to the Judiciary of Kenya. Upon payment of the filing fees, a notice of the petition is advertised in the Kenya Gazette so as to notify the public of the petition and for any person who has a claim on the Estate of the deceased to have an opportunity to object to the Grant of Probate being given to the executor.
- After 30 days of the notice of the petition appearing in the Kenya Gazette, an application for extraction of the signed and sealed grant of Letters of Administration – which will indicate the Administrators as the lawfully appointed Administrators of the Estate and state that they have undertaken to faithfully administer the Estate – should be made by the Administrators to the High Court.
Confirmation of the letters of administration intestate:
- Upon issuance of the signed and sealed Grant of Letters of Administration, the Administrators must wait for the statutory 6 months’ period to lapse before applying for the Grant to be Confirmed after which he/ she/ they will be issued with a Certificate of Confirmation of Grant of Letters of Administration.
- At this stage, the Administrators of the Estate shall inform the court on the mode of distribution of the estate. The Certificate of Confirmation of Grant of Letters of Administration intestate will be issued by the court once it is satisfied with the mode of distribution and endorses it. The Administrators will then have the authority to transfer the estate’s assets to the beneficiaries as per the mode of distribution endorsed by the court.
Exceptions to time for Confirmation of Grant.
There are exceptions under the Law of Succession Act where:
- Holders of the grants of representation (i.e. grant of probate and grant of letters of Administration Intestate) may apply to the court, and the court may direct for the Grant to be confirmed before the expiry of the 6 months period if the court is satisfied that:
- There is no dependent of the deceased or that the only dependents are of full age (adults) and consent to the application;
- That it would be expedient in all circumstance of the case.
- An applicant when making his/her petition to court also applies for the immediate issue of a confirmed grant of representation, if it is satisfied that:
- There is no dependent of the deceased other than the petitioner;
- No estate duty is payable in respect of the estate; and
- It is deemed to be just and equitable in all circumstances of the case to immediately issue a confirmed grant of representation.
by samson | Oct 3, 2022 | land survey
Land survey involves measuring and mapping the environment by employing calculations, specialized technology and equipment such as GPS, RTK etc. Therefore, it is an essential service that enable establishment of physical limits as well as the land measurements. Read this for more information.
land surveyor in the field
You should have a survey done under any of the following circumstances:
- Prior to purchasing land, to be sure of what you are buying, and for insurance purposes.
- Prior to installing a fence, building a house, or performing other types of construction including commercial construction staking.
- Prior to dividing a piece of land into smaller parcels .
- When you sell a parcel of land not previously surveyed.
- To verify the amount of land assessed for taxes.
- When you think a neighbor may have encroached on your property to settle boundary line disputes.
- When the property owner wants to update an outdated property survey
- Getting title insurance.
Conducting a land survey has various benefits to you as the landowner. They include;
- Determining the accurate location of your land boundaries without speculation
- Identifying the location of property utilities
- Locate any features in the land that can limit the use of such a property
- For better environmental planning and helping know whether the land is a flood zone
- Helps land owner prepare the land for construction either for a fence, temporary or permanent structure.
- Helps in land valuation also and prevents your land from being undervalued or overvalued when doing valuation of the land
- Land survey helps in proper subdivision of land either for purposes of selling or inheritance
