In the dynamic landscape of real estate investment in Kenya, conducting thorough due diligence on land is not just best practice; it is a necessity. Whether you are a seasoned investor or a first-time buyer, understanding the complexities of land acquisition in Kenya can help you avoid pitfalls and seize lucrative opportunities. As the saying goes, “an ounce of prevention is worth a pound of cure.” The essential steps and legal considerations that should guide your due diligence process are as follows: –
- Start with Site Inspection:
Before diving into any paperwork, it is critical to physically visit the property. This allows you to assess the condition of the land, the boundary lines, the soil topography, and the surrounding environment. One will also have an opportunity to engage with the local community to gather insights that may not be readily available through formal channels.
- Verify Ownership:
The second step in the due diligence journey is to confirm the ownership of the land. Request for a copy of the title and identification documents from the seller. This title will provide vital information on the ownership status, size, tenure, and location of the land.
- Conduct a Land Search:
- A search at the relevant land registry office will confirm if the land is free from any legal disputes or claims that could affect the transaction. An Advocate can assist you in conducting the search. The search can either be the ordinary search which will confirm the title number, the date of the search, the nature of the title, the approximate area of the property, the proprietor, encumbrances, cautions and inhibitions or the green card search which will give all the details of the ordinary search and the ownership history of the property.
Digging into the root ownership of the property as part of due diligence is important and one cannot claim to be a bonafide purchaser if the ownership history is defective or marred by illegality.
- Engage a licensed Land Surveyor.
Hire a licensed surveyor to conduct a land survey. Surveying of the property is essential to accurately determine the boundaries/beacons, the size and soil topography of the land.
- Investigate Land Rates, Rents and Taxes:
Before making a purchase, check if the land is subject to payment of land Rates and Rents. Further, please confirm if there are outstanding land rates, land rentand or taxes. Unpaid dues can result in legal complications or additional financial burdens.
- Legal Counsel:
Engaging a qualified legal professional who specializes in land law in Kenya is highly recommended. They conduct additional background checks on the property and the vendor.
Once they ascertain that the title is clean they will then guide you through the acquisition process, ensuring that all legal requirements are met.
Conclusion:
Conducting due diligence on land in Kenya may seem daunting, but it is a vital step in safeguarding your investment. By following these steps and leveraging professional guidance, you can navigate the intricacies of land transactions with confidence.
Remember, knowledge is your best ally in making informed decisions that pave the way for successful real estate ventures. Let’s embrace diligence in our investments and contribute to the growth of a transparent real estate market in Kenya!
