Introduction

Verifying a property before purchase is crucial to avoid fraud, legal complications, and financial losses. This guide provides a step-by-step process to ensure a property is legitimate and safe for purchase in Kenya.

1. Conducting a Title Search

a) Importance of a Title Search

• Confirms legal ownership of the property.

• Checks for encumbrances (loans, disputes, or legal claims).

• Verifies that the seller has the right to transfer ownership.

b) How to Perform a Title Search

• Visit the Ministry of Lands and Physical Planning.

• Provide a copy of the title deed.

• Pay the required fee (approx. Ksh 500-1,000).

• Obtain an official search report within a few days.

2. Confirming Land Ownership & Authenticity

a) Verifying with the Lands Registry

• Ensure the title matches the seller’s details.

• Cross-check details with local county lands offices.

• Confirm the type of land ownership (freehold or leasehold).

b) Checking for Caveats & Restrictions

• Some properties have restrictions preventing sale or development.

• Obtain an official search to see if the land has any legal caveats.

• If a caveat exists, consult a real estate lawyer before proceeding.

3. Survey & Boundary Verification

a) Conducting a Land Survey

• Hire a licensed land surveyor.

• Ensure the plot size and boundaries match the title deed.

• Verify beacons and physical demarcations on-site.

b) Getting a Mutation Map

• Obtain a mutation map from the Survey of Kenya.

• Confirms the official land subdivisions.

• Ensures no encroachment on neighboring properties.

4. Confirming Property Use & Zoning Laws

a) Checking Land Use Regulations

• Verify zoning laws at the county government offices.

• Ensure land use matches your intended purpose (residential, commercial, agricultural).

• Avoid buying land in protected areas or riparian reserves.

b) Environmental and Building Approvals

• If developing property, check for environmental impact assessments (EIA).

• Confirm with NEMA (National Environment Management Authority) for environmental restrictions.

• Obtain necessary construction permits from county authorities.

5. Verifying Seller & Agent Legitimacy

a) Confirming Seller Identity

• Ask for the seller’s original title deed and National ID.

• Verify the name on the ID matches the title deed.

• If buying from a company, request company registration documents.

b) Checking the Legitimacy of Real Estate Agents

• Ensure the agent is registered under the Estate Agents Registration Board (EARB).

• Avoid making payments before confirming property legitimacy.

• Request for a written agreement before engaging in transactions.

6. Reviewing Outstanding Fees & Taxes

a) Land Rates & Rent Clearance

• Obtain a land rates clearance certificate from the county office.

• Check for unpaid land rent (for leasehold properties).

b) Checking Utility Bills

• Confirm water, electricity, and service charges are cleared.

• Ensure there are no outstanding arrears with Kenya Power, Nairobi Water, or local providers.

7. Signing the Sale Agreement & Legal Considerations

a) Drafting a Legal Sale Agreement

• Engage a licensed real estate lawyer.

• Ensure the agreement includes:

  • Buyer & seller details.

  • Agreed purchase price & payment terms.

  • Title transfer conditions & timeline.

b) Handling Payment Securely

• Use a lawyer’s escrow account to transfer payments.

• Avoid cash transactions without proper documentation.

• Ensure payments are only released once ownership is verified.

8. Finalizing the Ownership Transfer

a) Paying Stamp Duty

• Buyer must pay stamp duty to Kenya Revenue Authority (KRA):

  • 4% of the property value (urban areas).

  • 2% of the property value (rural areas).

b) Registering the Title Transfer

• Submit documents to the Ministry of Lands.

• New title is processed within 30-90 days.

• Collect official ownership documents after registration.

9. Avoiding Real Estate Scams

Common Property Scams

• Fake title deeds – Counterfeit documents used to deceive buyers.

• Multiple sales of the same property – Unscrupulous sellers selling to multiple buyers.

• False ownership claims – Individuals posing as property owners.

How to Protect Yourself

• Always conduct an official title search before making payments.

• Work with registered real estate professionals.

• Verify all documents with the Ministry of Lands.

10. Conclusion

Property verification is a critical step before purchasing real estate in Kenya. By following this guide, you can ensure that your investment is legally secure and free from disputes.

For professional assistance with property verification, contact Nyumba Direct at support@nyumbadirect.com or call +254728012697