HOW TO CONDUCT DUE DILIGENCE WHILE BUYING LAND
Due Diligence is essentially taking reasonable precautions to prevent committing a crime or doing a thorough analysis of a business on behalf of a prospective buyer. Basically, this process include looking at the deal contract, any existing land-related paperwork, and the property’s physical state.
It is a widely used term in a variety of fields, particularly in the legal and business sectors.
To ensure a smooth and secure transaction and the security of your land, it is essential to carry out meticulous legal due diligence before making a big investment like a land acquisition.
The legal procedures that must be strictly followed are outlined here, along with a brief description of how to do due diligence.
Make use of a qualified advocate or attorney
One who is skilled and capable of navigating the legal framework for carrying out deals involving the purchase of land.
Check the title and ownership deed for the land
Verifying the ownership of the land, both physically at the Lands Registry and electronically at the Ardhisasa portal, is the first step in performing legal due diligence. Request the title deed or certificate of lease from the seller, which will be filed with the Ministry of Lands and Physical Planning, and confirm its validity.
Reviewing the title deed is a crucial element of your due diligence when buying land. These same paperwork ought to be able to list what is being sold, where it is, and any liens or other claims against the title.
Look for limits and encumbrances
Conduct a thorough investigation to find any encumbrances or restrictions on the property, both online at the Ardhisasa portal and physically at the Lands Registry.
These might include liens and mortgages. Verify if there are any ongoing legal battles or issues regarding the land as well.
Survey and physical inspection should be done
Hire a qualified surveyor to perform a survey of the property to determine its dimensions and the presence of any physical encroachments.
This step is essential to make sure the land you are purchasing is buying is consistent with the details listed in the title deed.
Perform a physical inspection of the land to see whether it is suitable for your intended purpose and to ascertain whether any developments or structures there are compliant with the law.
Verify adherence to land use and zoning requirements
Make sure the land is zoned properly for the use you want.
It is essential to confirm that your proposed activities comply with any applicable zoning regulations in Kenya as different places have different zoning laws that regulate land use.
Consult the regular authorities that are in charge of the same to confirm.
Examine planning and environmental approvals
Review any environmental and planning approvals necessary for the project if your intended use involves development or construction.
Verify if It is vital to obtain a license from the National Environment Management Authority (NEMA) and verify that the seller has all required permissions and permits.
Investigate the community and customary rights in depth
Land may be subject to communal or customary ownership rights in various areas of Kenya.
Look into any such rights that might have an impact on your ownership and use of the land.
Engage the neighborhood’s residents and the appropriate authorities to gain an understanding of the region’s land tenure structure and any obligations or constraints attached to it.
Examine the Sale contract
You can make sure that the terms and conditions are fair and reasonable to the letter by doing this.
For more information on this you can visit Amcco Properties Limited, and our experienced staff will guide you in your journey of becoming a land owner!
