Land leasing is one of the common practices especially in
agricultural areas like Uasin Gishu County.
With the harvesting season almost over in most parts of the county – for those who planted maize or wheat, there are many landowners who are willing to lease out their land – just as there are so many people looking for the land they can lease, for agricultural purpose, ahead of the next planting season.
At Baoriat Agencies, we help connect a person willing to lease out land and the one looking for make use of the land available for lease.
Assuming you have already identified a piece of land you want to lease – for whatever reason – be it agricultural or business purposes, here are 4 things you must do before finalizing that deal.
1. Land Search
Only a legitimate landowner can lease it out to another person – the rule has always been that ‘you cannot give what you don’t have’. The only way to tell if the person leasing land is the rightful owner is by doing a land search.
You can read more about and search by clicking here.
In the land search for the property who have identified, you will
be able to know the following;
-
Who exactly owns the
land you want to lease?
-
The exact acreage you’re
being leased?
-
Where the land is situated/located?
- Are there other third parties with rights over the land? for example is the land in question being used as collateral for a bank loan? – this will help avoid a scenario where a bank will come for the very same land you have leased when the repayment of the loan defaulted during your leasing period.
2. Written Agreement
Once you are satisfied that the person leasing you land is the rightful owner and it has no third parties involved, the next key stage is to draft a written agreement.
It is always advised to write down all your lease agreements and it is duly singed unlike for an oral agreement which can at times be challenging to be recognized in a court of law in the event of a dispute.
It is however good to note that the law only recognizes oral leases that do not exceed a two year, non-renewable term.
A written agreement will cover more terms and enable both parties to strictly stick to what they have agreed.
Some of the things that
can be included in a written lease agreement are;
a)
Assignment of
responsibility for government levies (ground rent and rates in the case of
leasehold land.
b)
Maintenance.
c)
Termination of the
agreement
d)
Assignment of costs for
restoration of the property
e) Payment of registration fees and much more.
Find Property in Uasin Gishu County
Baoriat Agencies
Call: +254 721-554-937
3. Register You Lease Agreement
Once the oral lease agreement is drafted and duly signed by both parties, witnesses and lawyers, the next step is to register it at the land registry – especially if it is a lease agreement at a minimum of two years and is renewable.
What is the importance of registering a lease agreement? It protects both the landowner and the one leasing it. If, for example, the landowner does before a lease expires, the registered agreement will protect the one who leased it.
For leases that run for over 25 years, while registering the lease at the lands registry, it is treated in the same way as transfers – with stamp duty payable at the applicable rates for transfers. However, land ownership remains intact, it is not transferred to a person leasing it.
4. Exit Plan
When leasing land, this step is usually overlooked yet it is very important. Most of the time a lease agreement will include a clause like; ‘at the end of the lease period, the land must be returned to the owner in the condition it originally was’.
Considering that clause, you need to plan ahead on what you will do with any improvements you will have done to the land you have leased – for a year, two or over 25 – factoring in all costs that will come with restoring the land to its original condition.
Once you have factored in all the above 4 things; you are good to go.
Baoriat Agencies is
committed to helping you find the best place for you to settle in Eldoret town.
We walk you through the entire process of acquiring your own property in
Eldoret until it has been transferred into your hands.
To learn more about buying a property in Eldoret,
Call 0721-554937
WhatsApp https://wa.me/0721-554937
Email evekibet@gmail.com or
Visit us at Juma Hajee Building room number 16, Eldoret town
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