A COMPREHENSIVE GUIDE TO CONDUCTING A LAND TRANSFER IN KENYA

Land transfer is the process of changing details in the land ownership documents from those of the vendor to those of the transferee through a legal process in a particular land registry.

A transfer takes effect immediately and is completed by the transferee's registration as the proprietor of the land or lease.

It is conducted for example when a buyer has acquired land or parents gift a property to their children.

By the time one is looking to execute a land transfer, they must have conducted a complete due diligence process and signed a sale agreement through an advocate.

A land transfer takes place in the following steps depending on the type of title you are dealing with;

1. Acquiring consent from the land control board
2. Clearance of all land rates and rent by the vendor
3. Payment of the stamp duty
4. Filling and signing of the land transfer documents that must be stamped by an advocate of the high court
5. Execution of the transfer by the land registry

There are three types of title deeds in Kenya;

1. Freehold title deed
2. Leasehold title deed
3. Sectional title deed/ condominium titles

FREEHOLD TITLE DEEDS

These are the most common title deeds in Kenya. They are defined by an unlimited period of ownership. The land owner rightfully owns a parcel of land until when they decide to pass it on through a sale, gifting, or succession. They do not have a time limit of ownership.

Mostly, they are used in the registration of agricultural land or parcels outside the urban areas.

LEASEHOLD TITLE DEEDS

As the name suggests, this is the type of title deed that grants the land owner a limited period of ownership as stipulated in the deed. The period ranges between 50 and 99 years since issuing by the government of Kenya. After which they are entitled to renew it.

They are mostly used to register land parcels in urban areas and huge parcels like ranches.

SECTION TITLES/ CONDOMINIUM TITLES

These are deeds used to prove ownership of a particular unit in an apartment block or estate where the house is built on a piece of land smaller than which the land registry can issue title deeds. In an apartment block, each unit owner gets a sectional title deed.

Depending on the subject title deed, the process might differ slightly. However, the process is almost similar for all three types.

What documents do you need during the land transfer process in Kenya?

For a seamless and fast process, you require the following documents for a land transfer;

• Original land title deed to show proof of ownership
• Land control board consent and spousal consent
• Land rates clearance certificate & land rent clearance certificate
• Buyer and seller copy of identity card, KRA pin cert, and colored passport size photos
• Transfer documents signed and executed by both parties in triplicate
• Receipt showing payment of stamp duty
• Valuation report from a government valuer

Now let’s dive deeper into the actual process. Step by step helping you understand what to expect. Our team at Shobill Group has successfully executed this process over the years.

1. ACQUIRING CONSENT FROM A LAND CONTROL BOARD

Consent is a mandatory legal requirement for certain land transactions, particularly involving agricultural land, such as sales, leases, transfers, or sub-divisions. It’s the first step of any freehold land transaction.

Land control boards meet once every month in every division or district. Parties looking to do a transaction should book and attend these meetings and face the panel. The role of the board is to ensure all transactions are legal, voluntary, and compliant with land use and planning.

In a case where the transacting parties cannot appear physically in front of the board, they can request a special board, which will cost around Ksh 20,000.

The following documents will be required;

• Signed and executed land control board form in triplicate
• Buyer and seller’s copy of ID, KRA certificate, and passport-sized photographs
• Current land search
• Receipt from Ardhi sasa after paying Ksh. 3000

This process should take one to two weeks.

2. CLEARANCE OF ALL LAND RATES AND RENT BY THE VENDOR

The vendor of the property is expected to clear all the pending land rates and rent before transferring the land to the buyer.

Land rates are paid at the area county council office after which one is issued with the land rates clearance certificate. On the other hand, the land rent is paid through ardhi sasa after which a land rent clearance certificate is issued.

3. PAYMENT OF STAMP DUTY

Before the execution of the land transfer, the buyer has to pay a stamp duty to the Kenya Revenue Authority, which is calculated against the land value. It is provided in section 10A of the Stamp Duty Act.

The rates are:

• 4% for land in municipalities

• 2% for rural land

The seller should present the valuation report obtained from the government valuer 30 days after the valuation and the stamp duty to be paid is calculated.

4. Filling and signing of the land transfer forms that must be stamped by an advocate of the high court

In the presence of an advocate, the buyer and the seller should sign transfer forms expressing their willingness to complete the transaction. The transfer documents should be submitted in triplicates.

The documents mentioned above are attached and submitted to the land registry.

5. Execution of the transfer by the land registry

Once all these documents are received at the land registry, they are verified and booked and a booking form is issued.

The land registry then makes a new entry with the new owner's details on the green card. After which a new title deed is printed, signed and sealed.

The duration of the procedure varies depending on the land registry. However, with a good land consultant, the procedure should not take more than a month.

Much as some purchasers may opt to handle the transaction themselves, it’s advisable to use an experienced land consultant who is more conversant with the process.

Reach out to us and we will help you through this process.