Agricultural land in Kenya. |
STEP 1: LAND SEARCH.
Land search is the first step for any land transaction. A search is a document issued by the land registry showing the owner of the land, land’s size, location of the land, encumbrances (a claim or liability against real estate including liens, easements encroachments or licenses) and restrictions. It takes one day to get and costs Kenya Shillings 2,500 only.
STEP 2: ACQUIRE LAND TRANSFER DOCUMENTS.
Involves contacting a lawyer to facilitate obtain and notarize the land transfer documents. Here, the steps are as follows;
- Application, payment and obtaining rates clearance certificate from the County Government.
The seller’s lawyer does this through consulting the local County Government Lands Office. The whole process approximately takes five days costing Kenya Shillings 10,000 only. This certificate proves that there are no outstanding fees to be paid at the City County’s office. Also, Lawyer’s fees are calculated according to the value of the land. The respective County Governments issues a Land rates clearance certificate after payment of all outstanding Land rates at the Local County Governments is done, an application and payment of the prescribed fees.
- Application and obtaining of land rent clearance certificate from the lands’ commissioner.
This certificate is proof that there are no outstanding fees to be paid to the County Government.
- Applying and obtaining of land rent clearance certificate from the lands’ commissioner.
- File the transfer instrument at the Lands Office for assessment of stamp duty payable on the transfer.
The buyer’s lawyer does draft transfer. Transfer instrument has to be approved by the seller’s counterpart before it’s filled at the land’s office to be assessed for Stamp Duty. After the lawyers approval the instrument is submitted for assessment of stamp duty at the Lands registry. The stamp duty is 4% of property value for urban lands and 2% for rural lands. The stamp duty amount to be paid is indicated when the application is filed. It takes approximately 7 days to obtain the receipt of payment (obligated to pay with a banker’s check) from the bank. The payment is made directly at the Lands Office.
STEP 3: VALUATION FOR STAMP DUTY.
This is done by a value who is attached at the land registry. The purpose of this is to know the amount of stamp duty to be paid. The documents required are;
- Current search
- A letter of consent.
- A sketch map.
- A spouse consent.
- A copy of the title.
- An application form.
The valued will
indicate the value of plot on the application form and stamp it.
STEP 4: PAYMENT OF STAMP DUTY.
Stamp duty payment involves;
a) Endorsement of value for Stamp Duty and assessment of Stamp Duty.
Complete the Stamp Duty including the purchase price. The stamp duty assessment officer will then assess the stamp duty payable and indicate the amount on the forms. It takes three days.
b) Payment of Stamp Duty.
Pay the stamp duty with a banker’s check. The payment is made through commercial banks and the approved banks include the Kenya Commercial Bank and The National Bank of Kenya. Payment is made to the Commissioner of Domestic Taxes on behalf of the Commissioner of Lands. It takes four days for the Kenya Revenue Authority to confirm receipt of payment. The Stamp Duty is payable online via the KRA Itax portal.
c) Submission of the documents for franking.
Transfer documents are then submitted for franking to confirm that any charges or taxes, such as the stamp duty on those documents have been paid.
STEP 5: REGISTRATION OF LAND.
Payment of registration fee of 500/- is done then you are issued with a booking form to fill. Pay registration fees. Afterwards, you can lodge the completion documents with Lands Office for registration of the transfer.
The seller’s lawyer obtain these documents including; original certificate of Title, Rates Clearance Certificate, Land Rent Clearance Certificate and the consent transfer. This process takes 12 days. After a successful registration you will receive the following document.
- An original title deed with the name of the buyer.
- Registered transfer forms.
- The pay in slip of stamp duty.
- Post purchase activity.
After a week or two,
you as the buyer should do another search with the ministry of Lands to confirm
that the land is now under your name.
Find property in Uasin Gishu County, Transnzoia County, Baringo County, Kakamega County and Elgeiyo Marakwet, contact Baoriat Agencies on 0721-554-937 or visit Juma Hajee Building in Eldoret Town.
Find Property in Uasin Gishu County
Baoriat Agencies
Call: +254 721-554-937
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