Sale of Land
Checklist
1. Check if title RLA/RTA/GLA; (Registered Land Act, Registration of Titles Act or Government Lands Act, Chapters 300, 281 and 280 of the Laws of Kenya, respectively. These statutes have now been repealed and replaced by the Land Act, 2012 and the Land Registration Act, 2012, although the titles and registry under the former laws are still in place.
2. Conduct search at lands office (for all transactions) and company registry (if necessary);
3. Check user of the property – if user agricultural ( as freehold titles tend to be) land board control consent will be required. The sale transaction will be void is the land board control consent is obtained at all or within the requisite time frame. After the sale has been concluded, the change of user should be applied for and obtained if the property if intended to be used for another user other than that stated in the title document;
4. If property is a leasehold, check the conditions endorsed on the original title or lease especially if there are development conditions. It is also important to check the terms of the leasehold title. If only a few years are remaining for the leasehold title to expire, the vendor may be required to apply and obtain an extension of lease.
5. It is common to check if the property is listed in the Ndung’u Lands Report on Illegal and Irregular Land Allocation report but currently the status/effect of that report is unclear;
6. If property is being transferred by administrators of estates of deceased ensure that the requisite procedure are adhered to. For instance, under RLA, the property has to be transferred to administrator using Form RL 7 who will then transfer it to the persons entitled under the will (RL 19) who will then transfer the property to the purchaser.
For RTA titles, the death certificicate and the confirmaton of grant of administration will be endorsed on the title and the administrator will be able to sell the property.
7. When preparing the sale agreement, check if the purchaser is getting a charge over the property in which case the entire amount/balance of purchase price will be secured by an undertaking from the bank or its advocates. Please also note that escrow agent or account as well as bank guarantees are becoming common methods of payment of balance of the purchase price and/or deposit, especially where the vendor's lawyer reputation is in doubt or uncertain;
9. If there is an introducing agent’s fee to be paid who will pay and at what stage? Usually this is paid at the end of the transaction.
Completion Documents
1. Original title to property – in case of change of user new grant issued (RLA/RTA Freehold to leasehold) and original grant surrendered- check that this has been done or that the change of user has been endorsed on the original title or grant – RTA uncommon;
2. the Land Rent Clearance and Rates Clearance Certificate, if applicable;
3. consent to transfer the property from the Commissioner of lands, if applicable;
4. Consent to transfer the property from the relevant land control board, if applicable;
5. Cheque for stamp duty in the name of the commissioner of domestic taxes (a/c of purchaser);
6. stamp duty valuation form duly completed by vendor or his advocate;
7. if change of user obtained PP2 (permission from city council);
8. 3 coloured passport sized photographs/copy of PIN Certificate & ID/Passport Number of transferor and transferee (director and director/secretary in case of company)
It is important for one to use a reputable lawyer or firm of advocates to act for him/her in the sale transaction. Such lawyer will also assist in obtaining the requisite completion documents.
For more information, please do not hesitate to contact me via mainacy@gmail.com
Checklist
1. Check if title RLA/RTA/GLA; (Registered Land Act, Registration of Titles Act or Government Lands Act, Chapters 300, 281 and 280 of the Laws of Kenya, respectively. These statutes have now been repealed and replaced by the Land Act, 2012 and the Land Registration Act, 2012, although the titles and registry under the former laws are still in place.
2. Conduct search at lands office (for all transactions) and company registry (if necessary);
3. Check user of the property – if user agricultural ( as freehold titles tend to be) land board control consent will be required. The sale transaction will be void is the land board control consent is obtained at all or within the requisite time frame. After the sale has been concluded, the change of user should be applied for and obtained if the property if intended to be used for another user other than that stated in the title document;
4. If property is a leasehold, check the conditions endorsed on the original title or lease especially if there are development conditions. It is also important to check the terms of the leasehold title. If only a few years are remaining for the leasehold title to expire, the vendor may be required to apply and obtain an extension of lease.
5. It is common to check if the property is listed in the Ndung’u Lands Report on Illegal and Irregular Land Allocation report but currently the status/effect of that report is unclear;
6. If property is being transferred by administrators of estates of deceased ensure that the requisite procedure are adhered to. For instance, under RLA, the property has to be transferred to administrator using Form RL 7 who will then transfer it to the persons entitled under the will (RL 19) who will then transfer the property to the purchaser.
For RTA titles, the death certificicate and the confirmaton of grant of administration will be endorsed on the title and the administrator will be able to sell the property.
7. When preparing the sale agreement, check if the purchaser is getting a charge over the property in which case the entire amount/balance of purchase price will be secured by an undertaking from the bank or its advocates. Please also note that escrow agent or account as well as bank guarantees are becoming common methods of payment of balance of the purchase price and/or deposit, especially where the vendor's lawyer reputation is in doubt or uncertain;
9. If there is an introducing agent’s fee to be paid who will pay and at what stage? Usually this is paid at the end of the transaction.
Completion Documents
1. Original title to property – in case of change of user new grant issued (RLA/RTA Freehold to leasehold) and original grant surrendered- check that this has been done or that the change of user has been endorsed on the original title or grant – RTA uncommon;
2. the Land Rent Clearance and Rates Clearance Certificate, if applicable;
3. consent to transfer the property from the Commissioner of lands, if applicable;
4. Consent to transfer the property from the relevant land control board, if applicable;
5. Cheque for stamp duty in the name of the commissioner of domestic taxes (a/c of purchaser);
6. stamp duty valuation form duly completed by vendor or his advocate;
7. if change of user obtained PP2 (permission from city council);
8. 3 coloured passport sized photographs/copy of PIN Certificate & ID/Passport Number of transferor and transferee (director and director/secretary in case of company)
It is important for one to use a reputable lawyer or firm of advocates to act for him/her in the sale transaction. Such lawyer will also assist in obtaining the requisite completion documents.
For more information, please do not hesitate to contact me via mainacy@gmail.com
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