Real estate transactions in Kenya involve complex legal processes that, if not properly managed, can lead to costly disputes. Whether you're buying your dream home or selling property, understanding key legal considerations is crucial. Here are essential tips for navigating real estate law in Kenya: 1) Conduct Thorough Due Diligence Before entering into any property transaction, verify the property’s legal status. Conduct a land search at the Ministry of Lands through the eCitizen of Ardisasa portals to confirm ownership details, check for encumbrances (like loans or disputes), and ensure the title is genuine. This process is governed by the Land Registration Act, of 2012. 2) Understand the Different Land Tenure Systems Kenya’s land tenure includes freehold and leasehold systems. Freehold grants unlimited ownership rights, while leasehold provides rights for a specific period (usually 99 years), often requiring renewal. Knowing the tenure type helps you understand your rights and obligations as a buyer or seller. 3) Draft and Review Contracts Carefully The sale agreement is a legally binding contract outlining the terms of the transaction. It should include the purchase price, payment terms, possession date, and conditions for termination. Engage a legal professional to draft or review the contract, ensuring compliance with the Law of Contract Act (Cap 23). 4) Ensure Proper Transfer of Ownership After signing the sale agreement and making payments, the transfer process begins. This involves obtaining consent from relevant authorities (especially for agricultural land under the Land Control Act, Cap 302), paying stamp duty as per the Stamp Duty Act, and registering the property in the buyer’s name. Ensure all documents are correctly filed to avoid future disputes. Final Thoughts Real estate transactions are significant financial decisions that require careful legal consideration. Consulting with legal experts ensures your interests are protected, and all legal requirements are met. At Murugu Rigoro and Company Advocates, we offer bespoke legal support to help you navigate Kenya’s real estate landscape confidently.
Written by Patrick Okoth
Published on April 4, 2024