Acquiring a Title Deed in Kenya isn’t a one-time payment thing as it may look like. The process itself has a series of payments that are combined to close up the deal for your Title Deed to be issued. In this blog, we break down the various stages of processing a Title Deed and how much each stage costs.
Title Deed Search
The topmost important stage is conducting a Title Deed search for the land you want to purchase. It only costs Ksh 500 to do a Title Deed land search paid via the Ardhisasa website or E-citizen platform.
Land Rates Clearance
Land rates are levies imposed on all parcels of land and payable to the county governments.
The land you are purchasing should have zero arrears for a Land Rate Clearance Certificate to be issued by the county government lands office. This clearance certificate is often free, but some counties, like Nairobi County, do charge.
Land Rent Clearance
Land rent is a levy imposed on leasehold parcels of land where the annual rent has been reserved at the time the grant is being issued, and it is payable to the Ministry of Lands and Physical Planning.
When the land rent arrears are cleared, a certificate is issued free of charge.
Note: Land rent is only imposed on leasehold land but not freehold land.
Valuation for Stamp Duty / Stamp Duty Payment
In Kenya, land purchases must incur tax levies known as stamp duty to be approved as taxed land. The stamp duty payable at the Commissioner for Domestic Taxes is 4% of property value for urban lands and 2% for rural lands respectively.
A government evaluator is sent to evaluate the land and summarize the accurate value before stamp duty is charged.
Clearance by the Land Control Board (Consent to Transfer)
Before buying any piece of land, one has to be cleared by the Land Control Board. This board holds forums that make sure the sale and transfer of the land is approved, ensuring that the seller is willing to sell and the buyer is willing to purchase, such that none of them is being coerced into the transaction.
The board also ensures that land transfers in the area are transparent.
If the board is convinced that the land transaction is good to go, they will offer a letter of consent, a process that can take up to a month.
The general charge for a title transfer fee is about Ksh 1000, but if you are in a hurry to acquire the land, you can request a special board forum and pay an extra amount for this special sitting.
Title Deed Registration Fees
The final payment falls into place at the land registry when submitting documents to obtain your Title Deed.
The registration fee chargeable is Ksh 500, and a booking form to fill will be issued by the officer. Information from the form will be used in printing your Title Deed, and thereafter, you will pay Ksh 5000 for the certificate to be issued.
Extras
Land buying is not a straightforward process that you can do on your own, so it is advisable to engage a lawyer who will guide you and even carry out some tasks on your behalf.
This ensures you are on the safer side by evading fraud cases. The lawyer will charge a legal fee based on your agreement with them.
Preferably, you can purchase directly from a real estate company like Amcco Properties Limited and have all the processes done for you without extra costs. No lawyers, no government offices, and no third parties. All you do is pay for the land and await your Title Deed.
