Transfer of property lease and Title deeds in Nairobi, Kenya

As Property lawyers in Kenya, we providing our clients with reliable legal and advisory services on sale and transfer of title deeds and leases in Kenya.

The sale and transfer of apartments and properties in Kenya is a tedious process that deals with a wide range of legal and procedural issues related to property law, such us.

1. Valuation
2. Offers to purchase
3. Agreement for sale
4. Search
5. Consent and clearance
6. Stamp duty
7. Taxation.
8. Transfer and registration.

We offer and experienced Conveyancing process in Kenya, assisting clients with the process of compliance, the sale agreement, transferring ownership of the apartment or property from the seller to the purchaser.

Transfer of a apartment lease title in Kenya.

At Kazi Legal, we understand the complexities of property law and conveyancing in Kenya. We have a team of experienced and knowledgeable lawyers and legal assistants who can provide you with expert advice and guidance in all aspects of property law and conveyancing in kenya. Our services include:

How to sell a property or apartment in Kenya.

1. Applications for Clearance Certificates

Before placing an apartment or property for sale, the seller should pay any outstanding arrears on land rent and property rates and obtain land rent clearance and land rates clearance certificates. The clearance certificates indicate that the property is free and clear for transfer.

• Freehold property is not subject to the requirement of payments for either land rent or rates.
• Both these clearance certificates are required for the registration of the transfer of title from a seller to a buyer.

Land rent is levied on leasehold land where the annual rent has been reserved. The land clearance certificate proves that payment of land rent is current. It is issued upon application once all outstanding levies are paid and is valid for one year from the date it is issued.

2. Search and Verification of Property Ownership.

The buyer shall request the seller to provide a current copy of the property’s title deed which shall be used to perform a property search at the land registry under whose jurisdiction the property falls. The search shall confirm the identity of the owner(s) of the property. The objective of a search is:

• To confirm the real owner(s) of the property
• To confirm the status of the property, specifically to confirm if the title has been charged or has a caveat placed against its transfer.

Depending on the jurisdiction under which the property falls, the search may possibly be done Online using Online platform or through manual records search at the relevant land registry and should cost you KES 500.

3. Survey map - Verification of Property Status.

Purchase survey plans of the property. These specialized maps show delineated boundary locations, building locations and other physical demarcations. The maps can be obtained from Ministry of Lands, Department of Surveys. Specifically, a prospective buyer will want to obtain two maps – one showing the properties immediately surrounding the one under consideration, and the other giving the exact measurements of the subject property called the mutation map. Each will cost under KES 500.

With THE maps, the buyer can contract a surveyor to visit the property along with the seller to verify whether the details of the property on the official maps match with those physically on the ground. The verification will ascertain both the physical dimensions of the property as well as to the physical location of the property.

The importance of physical verification cannot be overstated. A prospective buyer will be able to ascertain any limiting factors that may impede enjoyment of the property such as riparian paths, road reserves, and wayleaves for trunk lines for mains electricity, water or for sewerage placed in close proximity to or on the property. While these may not necessarily be “deal-breakers” they can be and may even impact on the decision to purchase.

Physical verification will also be the opportunity to get a lay of the land, mark out the placement of the property’s beacons of the property or have a surveyor reestablish them on the day of the visit.

4. Letter of Offer and Sale Agreement

Once terms and price have been negotiated and tacitly agreed upon, the buyer can commit to acquiring the property via the offer letter. The seller, through their lawyer, will then provide a written sale agreement.

The fees charged for legal representation on property transactions are subject to the value of the property and as prescribed in the Advocates Remuneration Order

5. Application for Transfer Consent and Payment of Deposit

Once the Sale Agreement has been approved and signed by all the parties to the transaction and their witnesses, the transfer consent documentation shall be prepared and all the attendant transfer documentation attached including the buyer’s and seller’s identification documents, their PIN certificates and photographs. The buyer shall proceed to pay the stipulated deposit amount for the transaction to proceed and the transfer shall proceed.

6. Pay the Balance of Agreed Purchase Price and Stamp Duty

At this stage, the transfer of the property from the seller to the buyer has been approved but has not yet been registered. There is no impediment stopping the buyer from dispensing with the payments to the seller at this point.

Before a transfer can be registered, the buyer is required to pay for stamp duty. The buyer initially obtains a payment authorization slip Online via Kenya Revenue Authority Itax portal and then proceeds to make payments via bank deposit. The current stamp duty rates are 4% of the valuation amount for lands within municipalities (leasehold property) and 2% for land outside municipalities (freehold property). The valuation of the property is not necessarily the sale price but the valuation of the property as determined by the government valuer.

7. Registration of Transfer

Having dispensed with any dues to the seller, sought the approval from the Land Control Board approving the transfer and paid all stamp duty charges, the transfer of the property from the seller to the buyer can now be registered.

With the approved consent, a recent search (not older than 6 months), the clearance certificates for land rent and rates, the survey maps, sale agreement, personal documentation (identity, PIN, passport photos) and a copy of the title deed, the buyer can then proceed the Ministry of Lands and Physical Planning to apply for change of ownershipThe cost for registration of change of ownership is KES 5,000.

8. Issuance of Title Deed and Verification of Registration Status

Once a transfer is registered, the Ministry of Lands will issue a title deed to the new owner of the property issued in his/her names. To ascertain that the transfer has been registered, the new owner should go back to the land registry and apply for a search to be undertaken on the subject property. The search should now reveal the new legal owner and title bearer of the subject property. Following the transfer, all rights and responsibilities attaching to the property are assigned to the new owner.

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