How to Conduct Due Diligence Before Purchasing Property in Kenya

Buying land in Kenya is a significant investment. To ensure a smooth and secure transaction, conducting thorough due diligence is essential. This involves investigating the land's title and verifying all relevant information before you commit to the purchase. This guide outlines the key steps:

1. Pre-Contract Inquiries:

These are crucial questions about the land's location and physical condition before you sign any contracts. A physical inspection of the land is paramount. This allows you to:

• Confirm the land's boundaries.

• Check for any squatters or occupants.

• Identify any fixtures or existing structures.

• Assess the surrounding area and any potential issues (e.g., access roads, utilities).

2. Searches:

Once you've identified the land, you need to conduct official searches at the relevant Land Registry. This involves:

• Obtaining a copy of the title deed from the seller.

• Filing a search application at the Land Registry. This search will reveal:

  • The registered owner of the land.

  • Any encumbrances (e.g., mortgages, liens).

  • Any cautions or restrictions on the property.

  • Whether the land is freehold or leasehold.

• Requesting clearance certificates for land rates and rent from the seller.

• Comparing the land details with relevant records to ensure the land hasn't been identified as illegally acquired.

3. Requisitions:

Requisitions are formal questions arising from the pre-contract inquiries and searches. These questions are addressed to the seller before any legal documents are finalized. They are critical for clarifying any ambiguities or discrepancies.

Why Due Diligence is Essential:

Due diligence is a non-negotiable step in any land purchase. While it might seem like an added expense, it's a small price to pay for protecting your investment. Instances of fraud and land disputes are unfortunately common. Due diligence significantly reduces your risk of being deceived or buying land with legal problems.

Reach out to us today on achieng@aga-advocates.com for a free consultation to discuss your options.

Important Note: This information is provided as a general overview and does not constitute legal advice to you. To get advice that is tailored to your specific situation and learn more, please contact us.