Securing Your Property: A Guide to conducting due diligence before transfer/registration of land

Are you considering purchasing land in Kenya? If so, it's important to understand the legal process involved to ensure a smooth and successful transaction. In this article, we will explore the legal requirements and procedures for conducting due diligence.

Our discussion will cover how to conduct investigation of title and the importance of conducting due diligence before making a purchase. By the end of this article, you will have a better understanding of the process of due-diligence and be better equipped to navigate the process with confidence.

INVESTIGATION OF TITLE

When purchasing land in Kenya, due diligence must be followed as acquiring land involves several steps and legal paperwork. It is important to ensure you have conducted all necessary research on the property you are looking to buy, that all documents are duly registered and valid

There are three key aspects of due diligence that you should consider when purchasing land:

· Pre- contract inquiries

As the name implies, they are questions or enquiries about the location and physical condition of the land selected for purchase. While purchasing land you will want to know where it is and the borders of the said land least you may end up purchasing "hot air". This is best accomplished by physically inspecting the land. You will be able to determine whether there are squatters on the property, whether there are any fixtures on the property, and so on.

· Searches

Once you’ve settled on the land to purchase, you will need to undertake due diligence, which will include requesting a copy of the title deed from the seller/vendor. Depending on the location of the property, you will then file a search application with the appropriate Land Registry. This search will reveal who owns the land, whether there are any encumbrances, cautions, or restrictions on the property, and whether the land is freehold or leasehold. The second step is to request that the vendor submit clearance certificates for land rates and rent. Finally, compare the land to the Ndungu land report to ensure that it has not been identified as illegally acquired government land.

· Requisitions

This are essential questions relating to the land that have come up as a result of pre-contract inquiries and searches. This process happens before execution of the instruments.

Due diligence is a vital step when purchasing land or property. For some, it may seem unnecessary, and most people feel that property/land selling companies undertake it on their behalf, but incidents of individuals being deceived or buying non-existent land are constantly on the rise. When weighed against the danger involved, the cost of doing due diligence is thus justified.

This post is intended for informative purposes only and should not be considered as legal advice. If you have any questions or require clarification, please contact us (info@kiplagatkiduiadvocates.co.ke) for legal counsel.