by admin 
It’s January and I believe most of us are armed with new year’s resolutions and lists of goals to be achieved in 2025. And because we are diligent people, I am sure investing in our future is on top of the list. Now, while we are at it, allow me to remind you that land is one of the best assets you can put your money on. This article aims at guiding you on the 8 most important steps you should adhere to in 2025 to avoid fraud or disputes when buying land. Stick to the end to get 3 bonus points!
Identify the land
We are planners and there’s no investment without a plan. Consider your needs i.e farming, building or prospecting. Consider your budget and location you would like to invest in.
Look for a trusted seller or real estate company that has projects that align with your plans and budget. Organize a site visit and ensure you get to see the land physically.
Verify Ownership
Request the Seller to issue you with a copy of Title Deed for the specific parcel you are looking to buy. Thereafter, Visit the Ministry of Lands and conduct a title search to confirm the land’s ownership, history, and any encumbrances (e.g., loans, disputes, or caveats).
Verify land size and Boundaries
This is a necessary but not mandatory step. You can hire a licensed surveyor to help you with establishing the actual size of the parcel and compare it against the information on the Title Deed. Moreover, the surveyor will ensure the land you’re set to purchasing does not encroach on public property or neighboring plots. You may also obtain a copy of the land registry for boundary verification.
Negotiate the Price
You already had your budget aligned in step one, so at this stage, you need to ensure the seller’s price aligns with the market trends. This is your chance to bargain on a price you consider fair and discuss the payment plan.
Draft a Sales Agreement
Most real estate companies in Kenya have licensed advocates who draft agreements on their behalf. However, if you are buying from a seller who doesn’t have an advocate, you need to agree on hiring one to draft an agreement for you.
A Sales Agreement should comprise of the following details:
- Details of buyer and seller
- Description of the land (title number, size, location).
- Agreed price and payment terms.
- Conditions for transfer.
- Penalties for breach
Payment of agreed deposit should be made upon signing of the agreement.
Pay Stamp Duty
You will need to pay stamp duty within 30 days of signing the agreement. Stamp duty rates varies from Urban to rural as follows:
4% of the land’s market value in urban areas.
2% of the land’s market value in rural areas.
However, the government conducts a valuation to determine the amount payable.
Transfer of Ownership
Your seller might do the transfer for you. However, should you want to carry out the transfer process, here is a list of documents that you will need to submit to the land registry:
- Original title deed.
- Signed transfer forms.
- Land Control Board (LCB) consent (for agricultural land).
- KRA PIN certificates for both buyer and seller.
- Clearance certificates (e.g., land rates, land rent).
- Payment receipts (stamp duty, search fees).
- Land Control Board (LCB) Consent:
Mandatory for agricultural land.
LCB meetings are held monthly in local administrative offices.
Application fee: KES 1,000.
Title Registration
Once the transfer has been completed, the buyer receives a title deed in their name and is required to register it. The registration fee is approximately KSH 5000. The Title registration usually takes between 1-2 weeks before completion. Thereafter, the land is yours and you can fence it to avoid enrochment of boundaries.
Bonus points.
- Consider using bank transfers as opposed to cash payment for transparency and record keeping purposes.
- Engage professionals all steps of the way i.e real estate agents, lawyers and surveyors so as to minimize the risks.
- Keep of community or ancestral land, most of the time the land ends in dispute.
