- Scouting for suitable plot or land.
After deciding on the specific area/locality you prefer to settle start scouting for a suitable plot in the area. Engage with land agents in the area to ensure you get a good plot which is within your budget. Key consideration during scouting is the size of the plot e.g 50×100, 50×80, 40×80 or 40×60. A bigger plot offers a bigger surface area sufficient for putting up a house and leaves sufficient space for a kitchen garden and a parking space. Distance from the main road, key amenities like water, electricity, connection to sewer is also a major consideration before settling on a specific plot.
- Determine the topography of the plot.
Once you have settled on a specific plot, it’s important to carry out a topographical survey to help you know whether your plot is on water way or prone to flooding during the rainy season.
When purchasing a plot during the dry season it’s not possible to know whether the plot you are interested in is on a flood zone. A topographical survey will assist in establishing this important fact.
- Due diligence on the plot.
You have settled on the plot you want to purchase. Now you embark on due diligence to know its legitimacy. The first point of call is at the land registrar’s office with a copy of the title deed. You do a land search to establish the owner of the plot, whether the plot has any encumbrances or disputes in form of a caution. The next point of call is the area survey office to obtain the main map where the plot is located. From the main map, you should be able to point out the main parcel of land from which the plot was sub-divided from. Make sure the plot is not on land earmarked as public utility. You should also get a mutation to help you confirm the position of your plot on the ground to eliminate the risk of being shown the wrong plot on the correct parcel of land.
- Due diligence on the plot seller/owner.
After satisfying yourself that the plot you intend to buy has a clean/legitimate title deed, now it’s time to know whether the person listed on the title as the owner is indeed the owner. Many are the times when fraudsters impersonate real people using forged documents to defraud unsuspecting buyers. Carry out a search of the identity card at the registrar of persons to know whether it’s a legitimate identity card or a forged one.
- Negotiation.
Once you have verified that the owner of the plot is the legitimate one and the title deed is also legit, it’s time to sit down with the owner to negotiate on the price and other terms like payment mode, duration of payment, who bears the costs of the agreement and other costs like land rates and rent.
At this point, the plot owner should show you the original title deed document for you to ensure that it exists physically as some land proprietors are known to deposit their original title deeds with shylocks to get informal loans. Makes sure you look out for key features of the title deed to avoid being shown a fake title deed.
- Sale agreement drafting and execution.
After negotiation and agreeing with the owner as to the terms and conditions that will guide the transaction, you engage a legal advocate to act on both parties to draft a sale agreement as per the agreed terms and conditions. The advocate will also guide both the buyer and the seller as to the general terms and conditions that apply to transactions of land. The buyer should make sure that s/he reads and understands all the terms and conditions on the final sale agreement before signing on it. The buyer should also insist that the original title document be deposited with the advocate after execution of the sale agreement to avoid the risk of the owner being in custody of a title deed which has already been committed for sale. This will eliminate the risk of the plot being sold to a different person if the seller were to remain with the original title deed after receiving the deposit.
- Payment of deposit.
After the execution of the sale agreement, the amount specified by the agreement as the down payment should be paid immediately. The buyer should make sure that after making a bank transfer to the sellers account specified in the sale agreement, that he obtains a receipt or a reference code in case of mobile money transfer and file the same with the advocate to act as evidence of payment of the deposit.
- Land control board consent.
After the owner of the plot acknowledges receipt of the deposit, s/he should apply for consent to transfer in favor of the buyer. He should furnish the area land administrator with the necessary documents to facilitate processing and issuance of consent to transfer in favor of the buyer.
- Final payment and handing over all completion documents to the advocate.
Once the owner of the plot has obtained the consent to transfer in favor of the buyer, s/he should surrender them to the advocate acting for both parties together with all other relevant documents listed in the sale agreement as necessary for a smooth transfer to the buyer. These may include and are not limited to; copy of identity card of the owner, copy of KRA pin of the owner, land and or rent payment receipts in respect of the plot for the current year, spousal consent or an affidavit declaring that the property is not a matrimonial property. Once the advocate verifies that the documents presented are in good order, the buyer should now make the final payment to the seller and present a receipt to the advocate.
- Payment of stamp duty and transfer to the buyer.
Once the final payment is made, the title now can be transferred in favor of the buyer. The process starts with assessment of stamp duty payable to KRA by the new owner by the government valuer and payment of the assessed amount. The original title document together with consent to transfer and identity card and KRA pin of both seller and buyer are presented to the registrar to facilitate transfer to the new owner.
Anthony Muhate- C.E.O ATIMZ INVESTMENT
