This archive report was first published on 30 December 2021.
December 30, 2021, marked a significant milestone in the Kenyan real estate sector with the launch of the digital Ardhi Sasa system by the Ministry of Lands. This innovative platform aims to streamline the land-buying process, making it more efficient and secure for buyers.
However, despite the introduction of this digital system, many Kenyans still fall prey to land cons and end up in costly court battles. The reasons for this are varied, but one common thread is the lack of due diligence on the part of the buyer.
As Faith Mutio, a sales executive at Superior Homes Kenya, notes, "The tedious and frustrating old process of purchasing a piece of land may have come to an end following the launch of the digital Ardhi Sasa system by the Ministry of Lands this year."
But what exactly is due diligence, and how can buyers ensure they are taking the necessary steps to avoid cons and court battles? According to Mutio, the process involves several key steps, including conducting an official property search at the Land Registry, conducting a county search, physically viewing the site, and thoroughly inspecting the property and its surroundings.
Conducting an official property search at the Land Registry is the first step in ensuring that the land you are buying is legitimate and free from any encumbrances. This involves obtaining a certified copy of the land title from the seller and using it to apply for an official land search. The results of this search will contain information on the name of the registered proprietor or owner of the land, any encumbrances over the land, and other third-party rights.
Conducting a county search is the second step in the due diligence process. This involves searching the county government land registry offices to determine whether land rates have been paid and are up to date. The buyer will also receive information on the registered user of the land, which is essential in determining whether the seller is the actual owner of the land.
Physically viewing the site is another crucial step in the due diligence process. This involves visiting the land to verify its existence and to ensure that it meets your expectations. It is essential to bring along a second or third person to provide an independent opinion about the property, rather than relying solely on your own opinion.
Thoroughly inspecting the property and its surroundings is also vital in ensuring that you are buying a legitimate piece of land. This involves checking the distance from the main road, water and electricity provision, social amenities, and other essential services. It is also essential to monitor the transport system and its availability at all times.
By following these steps, buyers can ensure that they are taking the necessary precautions to avoid cons and court battles when buying land. As Mutio advises, "Believe what you see and not what you hear or read online. Only pay after you have confirmed that the land meets your expectations, has a clean title, and is owned by the person purporting to sell it."