The following are common mistakes to avoid when buying land in Kenya. Understanding these is essential to ensure a smooth and secure investment process.
1. Failing to Conduct Proper Due Diligence
Before buying land in Kenya, verifying all legal documents and ensuring everything is legitimate is essential. This step can prevent potential disputes and financial losses.
Land Title Verification
Make sure to check the land title documents carefully. Verify that the seller truly owns the land and has the right to sell it.
You can obtain this information from the State Department for Lands and Physical Planning in Kenya or via a more efficient professional due diligence process.
It’s important to confirm the land’s size and location match what is recorded. You don’t want any surprises after the purchase.
Double-check the accuracy of plot boundaries to avoid disputes with neighbors.
Consider hiring professionals like our law firm to assist you in this process.
2. Ignoring Zoning and Land Use Regulations
Zoning and land use regulations are crucial when buying land in Kenya. Zoning laws define how you can use a piece of land.
In Kenya, these laws can vary from one county to another. Failing to consider these rules can lead to significant challenges and costly mistakes.
You should always check the zoning laws of the area where you want to buy land. This ensures that you can use the land as planned.
3. Skipping Land Surveying
Land surveying is crucial when buying land in Kenya. Skipping it can lead to boundary disputes and unexpected costs in the future.
You might discover that you own less land than expected or encounter legal issues that prevent you from using the land promptly.
The Role of Surveyors
A surveyor checks the property’s boundaries and ensures everything is clear. They use tools to measure the land accurately. This way, you know exactly what you’re buying.
Surveyors also identify any encroachments on the property. An encroachment is when something, like a fence, crosses onto your land. Knowing about these early saves lots of trouble.
4. Overlooking Environmental Considerations
When buying land in Kenya, it’s vital to consider environmental factors. Ignoring these can lead to unexpected costs and challenges. Below, you will find essential factors related to this issue.
Flood Risks and Environmental Impact Assessments
Knowing whether a plot is prone to flooding is crucial. Flood-prone areas can lead to costly damages to property and crops. Check local maps and consult experts to determine if the land is at risk. Prioritize land with proper drainage systems.
An Environmental Impact Assessment (EIA) ensures that your land purchase complies with environmental laws. An EIA considers how your development affects the environment and ensures that any negative effects are minimized.
5. Not Engaging a Lawyer
When purchasing land in Kenya, failing to enlist the help of a lawyer can lead to significant legal challenges. A lawyer ensures you navigate complex legal waters and secure your investment with appropriate protections.
Legal Safeguards
Having a lawyer is crucial for protecting your interests. They verify property ownership and confirm the seller’s right to sell. This step helps you avoid purchasing land with contested ownership.
Lawyers also draft and review the sale agreement. This legal document outlines terms of sale, payment plans, and penalties for breaches. Without legal support, you might miss unfavorable clauses or errors.
Why take risks?
Engaging a lawyer reduces risks, offering peace of mind. To ensure your investment is legally sound, consider contacting Kraido Advocates LLP.
6. Neglecting to Verify Access to Utilities and Infrastructure
Access to essential utilities and infrastructure can significantly impact the value and livability of land. Neglecting these checks can lead to problems and unexpected expenses.
Check for Utilities and Roads
When buying land, it’s crucial to verify the availability of utilities like water, electricity, and sewage. These are fundamental for future development. Contact utility companies to see if connections are possible and how much it might cost.
Road access is equally important. Good roads mean easier transportation and can enhance property value. Ensure the land is accessible year-round. Talk to local authorities about any planned road developments.
7. Paying in Full Before Ownership is Transferred
Paying the full price before your ownership is legal can lead to serious issues. It might take months to officially transfer the title deeds. During this time, you have no legal claim to the land. You risk losing your money if any disputes arise.
Structured Payments
Consider a structured payment plan. This approach lets you pay in stages. With each payment, specific milestones in the buying process are met.
For example, you might agree to pay 10% when signing the sale agreement, another 40% once all legal checks are done, and the rest when the title deed is transferred.
Using structured payments lessens financial risk. It also ensures smoother transactions through verified steps. Always have any such plan reviewed by a legal expert before proceeding. This keeps all parties clear on the terms and obligations.
This way, you stay protected. Sellers are also motivated to complete the process because they receive payments in parts. Our team at Kraido Advocates LLP can help you draft a safe payment agreement, so contact us today.
8. Failing to Plan for Future Development
When buying land in Kenya, it’s essential to think beyond the initial purchase. Lack of foresight can lead to unexpected challenges.
It’s essential to be aware of upcoming projects or changes that could affect your property’s value.
Research Future Projects
Before making a purchase, spend time researching planned infrastructure developments like roads, schools, or commercial zones in the area. These projects can drastically alter the value of your land. You might find that a future road will increase traffic and accessibility, raising property values.
Use resources such as local government reports and community meetings or consult experts. These can provide insights into what developments are in the pipeline. Being informed helps you make smart investment choices.
Remember, some changes can negatively impact your property. Speak to professionals for expert guidance on how future plans might affect your investment.
9. Trusting Verbal Agreements
When buying land in Kenya, avoid relying on verbal promises. Always opt for written agreements, which are legally binding and protect your interests.
Use Written Contracts Only
Relying on someone’s word might seem simple, but misunderstandings can happen. Verbal agreements are risky and not legally enforceable under Kenya’s Laws.
Always ensure that you have a written contract. This formal agreement should include the terms and conditions of the sale and protect you in case of disputes.
Tip: Agreements for the sale of land must be in writing under Kenyan law. By having everything documented, you guard against possible fraud and miscommunication.
If you’re purchasing land, consult Kraido Advocates LLP to help you prepare a proper written contract. Don’t let a verbal promise cause you issues in your land purchase journey.
10. Underestimating Additional Costs
When buying land in Kenya, it is crucial to consider all potential costs beyond the purchase price. Neglecting these additional expenses may lead to unexpected financial burdens.
Failing to budget correctly can also slow down your land acquisition process or cause problems in the future.
Budget for All Costs
When buying land, you don’t just pay for the land itself. Be prepared for extra costs like legal fees, stamp duty, and land survey charges. Legal fees typically cover the preparation and review of contracts. Stamp duty in Kenya is generally 2% to 4% of the land’s value, depending on its location. Land surveys help you confirm the exact boundaries of your plot.
You may also face costs for valuation reports and securing necessary permits.
If you plan to build or develop the land, factor in costs for utilities and infrastructure as well. Understanding these costs will help you plan a realistic budget and avoid financial strain.
Ensure your land investment is sound by making informed decisions. If you have legal questions, schedule a consultation with our team here at Kraido Advocates LLP for expert guidance.
