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    Due Diligence Procedures in Land Transactions in Kenya - Five Steps. - Begi's Law

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    Martha Muthoka
    This document outlines five steps for conducting due diligence on land transactions in Kenya: 1. Conduct an official search at the Land Registry to verify the registered owner and any encumbrances on the title. 2. Search county government records to check if land rates are paid and the registered zoning/permitted use of the land. 3. Inspect the physical property to ensure it matches the title details and conduct local inquiries about the land. 4. Check for any pending or threatened legal cases related to the land. 5. Review documentation like title deeds, sale agreement, and transfer forms to ensure all details are accurate before payment.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Due Diligence Procedures in Land Transactions in Kenya - Five Steps. - Begi's Law

    Uploaded by

    Martha Muthoka
    101 views12 pages
    This document outlines five steps for conducting due diligence on land transactions in Kenya: 1. Conduct an official search at the Land Registry to verify the registered owner and any encumbrances on the title. 2. Search county government records to check if land rates are paid and the registered zoning/permitted use of the land. 3. Inspect the physical property to ensure it matches the title details and conduct local inquiries about the land. 4. Check for any pending or threatened legal cases related to the land. 5. Review documentation like title deeds, sale agreement, and transfer forms to ensure all details are accurate before payment.

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    Due Diligence Procedures in Land Transactions in Kenya_ Five Steps. - Begi's Law

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    This document outlines five steps for conducting due diligence on land transactions in Kenya: 1. Conduct an official search at the Land Registry to verify the registered owner and any encumbrances on the title. 2. Search county government records to check if land rates are paid and the registered zoning/permitted use of the land. 3. Inspect the physical property to ensure it matches the title details and conduct local inquiries about the land. 4. Check for any pending or threatened legal cases related to the land. 5. Review documentation like title deeds, sale agreement, and transfer forms to ensure all details are accurate before payment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    101 views12 pages

    Due Diligence Procedures in Land Transactions in Kenya - Five Steps. - Begi's Law

    Uploaded by

    Martha Muthoka
    This document outlines five steps for conducting due diligence on land transactions in Kenya: 1. Conduct an official search at the Land Registry to verify the registered owner and any encumbrances on the title. 2. Search county government records to check if land rates are paid and the registered zoning/permitted use of the land. 3. Inspect the physical property to ensure it matches the title details and conduct local inquiries about the land. 4. Check for any pending or threatened legal cases related to the land. 5. Review documentation like title deeds, sale agreement, and transfer forms to ensure all details are accurate before payment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 12

    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps.

    - Begi's Law

    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 

    ll EVENTS ll CONTACT US

    Blog

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    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 

    ll EVENTS ll CONTACT US CLICK TO BOOK AN


    APPOINTMENT

    Type keywords...
    Due Diligence Procedures in
    Land Transactions in Kenya:
    Five Steps. Related Posts

     25 OCT 2020  ELVIS ABENGA  ALTERNATIVE DISPUTE


     COMMERCIAL LAW AND CORPORATE LEGAL ADIVSORY, RESOLUTION (1)
    CONVEYANCING AND PROPERTY TRANSACTION
     14  BLOC (6)

     BLOC STORIES (3)

     CIVIL AND CRIMINAL


    LITIGATION (1)

     COMMERCIAL LAW AND


    CORPORATE LEGAL
    ADIVSORY (9)

     CONSTITUTIONAL LAW
    AND HUMAN RIGHTS
    INTRODUCTION (4)

    The late James Madison once stated that “if men were  CONVEYANCING AND
    angels, no government would be necessary…” (Federalist PROPERTY
    TRANSACTION (6)
    Papers 51-60).  I would extend this statement to also mean
    that if men were angels, no law would be necessary, and  ELECTION LAW IN
    KENYA (1)
    due diligence before transactions would also not be
    necessary.  FAMILY AND CHILDREN
    LAW (11)
    As we very well know, men are not angels. This is especially
     IMMIGRATION LAW (3)
    so in land matters. In Kenya, land is a very emotive issue.
    https://www.begislaw.com/due-diligence-procedures-in-land-transactions-in-kenya-five-steps/ 2/12
    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    Kenya unfortunately has very many fraudsters who purport  INTELLECTUAL


    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM PROPERTY
    ll PRACTICE AREAS (1)
    ll RESOURCES 
    to sell that which they do not have title or power to sell. This
    necessitates
    ll EVENTS a wise buyerUS
    ll CONTACT of land to conduct due diligence  UNCATEGORIZED (3)
    over the land to ascertain whether or not the person

    purporting to sell the parcel of land, has title to it.

    The purpose of this article is to introduce the reader to the


    various steps in conducting due diligence before a buyer
    pays the purchase price of land to a purported seller.

    STEP ONE: OFFICIAL SEARCH AT THE LAND REGISTRY

    The first step in due diligence is to conduct an official search


    at the Land Registry closest to where the land is sold. We
    often advise clients to do this even before drafting an
    agreement for sale. The seller of the land would give you or
    your advocate a recently certified copy of the title of the
    land. With the title copy, one proceeds to either
    electronically apply for an official search ( if the land is in
    Nairobi or other digitally-enabled registries), or by making a
    physical application for official search as is the case in up-
    country registries.

    Within a day or two, the search results will come out. The
    results will contain the following information:

    1. The name of the registered proprietor/owner of the


    land.

    https://www.begislaw.com/due-diligence-procedures-in-land-transactions-in-kenya-five-steps/ 3/12
    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    2. Any encumbrances over the land such as charges, (


    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 
    where the land had previously been charged or
    llmortgaged
    EVENTS toCONTACT
    ll a financial
    US institution), registered caveats,
    cautions, or restrictions on the land, as well as other

    third party rights such as existing easements and
    licenses.
    3. If the property is a government lease, the remaining
    duration of the lease.

    With this information, the prospective buyer of the land


    would be able to ascertain whether or not the prospective
    seller of the land is the actual owner of the land. The other
    information on the land would guide the buyer in making
    an informed decision whether or not to proceed with the
    transaction.

    At times the circumstances of the transaction may


    necessitate carrying out a historical search. This is a type
    of search specially conducted by the registry where the
    history of the land and all transactions related to it from the
    very first historically recorded transaction, are released.
    Historical searches are useful, especially where there is a
    dispute as to ownership of the land.

    STEP TWO: COUNTY REGISTRY SEARCH

    https://www.begislaw.com/due-diligence-procedures-in-land-transactions-in-kenya-five-steps/ 4/12
    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    The buyer after completing the official search mentioned in


    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 
    the preceding section, will then proceed to the county
    government
    ll EVENTS registry and conduct
    ll CONTACT US a search over the records
    held at the county government. The county government

    registry, will upon paying the necessary fees, give the buyer
    the following information over the land:

    1. Whether or not land rates have been paid and are up to


    date
    2. The registered “user” of the land.

    Rates

    It is important for the buyer to know whether or not rates


    have been cleared as a Rates Clearance Certificate will be
    required before the title is transferred to the buyer. It is the
    duty of the seller of the land to clear all rates.

    Registered User

    Land is always classified and subdivided into different zones


    with different “users”. The word “user” here denotes the
    allowable activities in the occupation of the land.  For
    example, land that is designated as “agricultural”, cannot be
    used for any other purpose except as such. One can also
    not construct a factory on land that is designated
    “residential”.

    Conducting a county registry search will aid the buyer to


    ascertain the designation of the land and to examine
    whether the buyer’s intended exploitation of the land,
    conforms to its designated use.

    Should it not conform to its designated use, the buyer will


    have the option to either withdraw from the transaction or
    prompt the seller to apply for a “change of user.”

    https://www.begislaw.com/due-diligence-procedures-in-land-transactions-in-kenya-five-steps/ 5/12
    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    STEP THREE: REGISTRY OF PERSONS VERIFICATION


    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 

    ll EVENTS ll CONTACT US

    This has become a very important step in recent times. Our


    office has recently handled a case where a fraudster
    impersonated the actual owner of some land in order to
    defraud unsuspecting members of the public. The fraudster
    forged an identity card showing the name of the actual
    owner of the land, but the face of the fraudster. He then
    proceeded to enter into an agreement and receive deposits
    over the land before cutting all communication.

    It is thus important for the buyer of the land to verify the


    authenticity of the seller’s identity documents at the registry
    of persons before proceeding with the transaction.

    STEP FOUR: UTILITY VERIFICATION

    In this step, the buyer will visit the various utility companies
    to establish whether there are pending unpaid utility bills.

    https://www.begislaw.com/due-diligence-procedures-in-land-transactions-in-kenya-five-steps/ 6/12
    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    This is important for the buyer to avoid taking over bills that
    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 
    he/she did not incur.
    ll EVENTS ll CONTACT US
    STEP FIVE: BOUNDARY VERIFICATION

    In this last step, the buyer will purchase a Deed Plan from
    the relevant county surveyors office. A Deed Plan is a map
    that shows the dimensions of the land, as well as the
    various measurements, sizes, and bearings on the land. The
    buyer will then hire the services of a surveyor who will
    physically visit the location of the land to ascertain that the
    demarcation beacons are in the right places and have not
    been tampered with.

    CONCLUSION

    Once all the above steps are undertaken successfully and


    the results show that the transaction is clean, the buyer will
    have the necessary confidence to proceed with the
    transaction. It is always better to take caution rather than
    https://www.begislaw.com/due-diligence-procedures-in-land-transactions-in-kenya-five-steps/ 7/12
    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    rush into a transaction and later suffer losses. While the


    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 
    above steps may seem to be petty to many people, in
    matters of land,llitCONTACT
    ll EVENTS pays to US
    be petty.

    Share
     Post:

     EARLY TERMINATION OF COMMERCIAL LEASES IN


    KENYA: A Legal Analysis
    COMMERCIAL ARBITRATION: A Short Introduction 

    14 RESPONSES

    Boru  Reply
     December 21, 2020 at 6:56 am

    Meticulous. Always a pleasure reading your


    Articles for all my classes.

    Lynda  Reply
     February 16, 2021 at 4:48 am

    This is well done and quite informative


    BLOC.Kindly do one for sectional properties.

    Elvis Abenga  Reply


     February 18, 2021 at 4:32 pm

    Dear Lynda,

    Many thanks,

    We will do so.

    https://www.begislaw.com/due-diligence-procedures-in-land-transactions-in-kenya-five-steps/ 8/12
    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    Charles  Reply
    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 
     November 20, 2021 at 4:10 pm

    ll EVENTS llQuite an informative


    CONTACT US piece! Explained in
    plain English.

    saiful  Reply
     March 13, 2021 at 5:07 pm

    Dear Sir\Madam,

    I am Saiful from Bangladesh.


    occupation: I am a Student and freelancer
    Can you help me?

    Elvis Abenga  Reply


     March 30, 2021 at 3:37 pm

    Hello

    I have sent you an email.

    Please check. Kind regards.

    saiful  Reply
     March 13, 2021 at 5:14 pm

    Can you help me


    Please mail me.
    [email protected]

    Elvis Abenga  Reply


     March 30, 2021 at 3:36 pm

    Hello, I have sent you an email.

    https://www.begislaw.com/due-diligence-procedures-in-land-transactions-in-kenya-five-steps/ 9/12
    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    Please check.
    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 
    PETER  Reply

    ll 
    EVENTS April 11, 2021USat 6:01 pm
    ll CONTACT


    Quite educative. gland to have bumped on this
    site. Matters land buying is very tricky today.
    thanks

    Charles  Reply
     November 20, 2021 at 4:10 pm

    Quite an informative piece! Explained in plain


    English.

    Pingback : SECTIONAL PROPERTY: Long- Term Leases. -


    Advocates.ke Insights

    Mwendwa  Reply
     November 30, 2021 at 5:58 am

    Clear article.

    Would you mind having links that get readers to


    take action in each step as value enhancement to
    the great article?

    Betty  Reply
     July 6, 2022 at 7:50 am

    This is very informative. Next time blog on buying


    a property as a foreigner.

    LISA NJOROGE  Reply


     August 4, 2022 at 7:48 am

    https://www.begislaw.com/due-diligence-procedures-in-land-transactions-in-kenya-five-steps/ 10/12
    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

    Hello Betty, I trust that you’re well.


    ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 
    Thank you for taking your time to read throu
    ll articles,
    EVENTS Keep it here US
    ll CONTACT to see our next article o
    property as a foreigner.

    L E AV E A R E P LY

    Name* Email* Website

    Save my name, email, and website in this browser for the


    next time I comment.

    POST COMMENT

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    2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps. - Begi's Law

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