What is a land mutation document?
What is the process of buying land like?
- Identification of a piece of land by the prospective buyer.
- Conducting an official search at the district land registry offices to ascertain the ownership and relevant records pertaining to the land. When conducting a search, one requires to issue a copy of ID and KRA PIN together with the search application form.
- Acquisition of land blueprint maps from Survey of Kenya offices. Updated land maps portray the dimensions and positioning of all registered land in Kenya and therefore a valid parcel of land should be appearing therein.
- Verification of the land on the ground using the Land map and ascertainment of boundaries and beacons, if in place.
- Drafting of a sale agreement between the buyer and the seller. The sale agreement should be prepared by a registered and licensed lawyer for the security of both the buyer and seller, and it should outline all the sale terms between the buyer and seller.
- Obtaining a land-transfer approval from the area land control board (LCB). An approval must be issued by the LCB before any parcel of land can be transferred between 2 parties, or subdivided. There is an LCB in every sub-county. This approval is should be pursued by the seller.
- Transfer of the land to the buyer by the seller. Once LCB approval is issued, transfer of title can be done from the seller to the buyer, after the buyer has completed the payment for the land.
- After a new title is issued under the buyer’s name, the buyer should do a new search to confirm that the land registry records were properly updated to reflect the new ownership.
How can you verify the ownership details of a parcel of land?
The surest way to confirm the ownership details of a parcel of land is by obtaining a copy of the current document of title of the land (e.g. title deed), and using the copy to conduct a land search at the district lands offices. In addition to the copy of the title deed, the applicant of the search needs to fill a search application form and also attach a copy of their ID card and KRA PIN. The official document is issued signed and stamped by the lands registrar, and displays the current owner(s) of the land, the land dimensions, when the title deed was issued, and whether there are any encumbrances on the land e.g. a bank loan charge etc.
What is a land search document?
A land search document is a document that is issued by the district lands office, and it shows the current owner(s) of a parcel of land, the land dimensions, when the title deed for the land was issued (if issued), and whether there are any encumbrances on the land e.g. a bank loan charge etc. The search document is usually signed and stamped by a lands registrar.
What is Stamp Duty in the land-buying process?
Stamp duty is a tax that is payable to KRA by every buyer of a property in Kenya, and which is payable before the transfer of ownership of the property from the seller to the buyer. A stamp duty is 4% of the property value for urban lands and 2% for rural lands.
What is Capital Gains Tax in the land-buying process?
Capital Gains tax is a tax that is payable to KRA by every seller of a property in Kenya, and which is payable before the transfer of ownership of the property from the seller to the buyer. The tax is based on the increase in value of the property over the time it was under ownership of the seller. The tax is 5% of the increase in value of the property. To give a very simplistic example, if the seller purchased a parcel of land for Ksh. 5,000,000 and sells it for Ksh. 7,000,000, the increase in value of the land is therefore Ksh. 2,000,000. The payable capital gains tax will be 5% of 2,000,000 which is Ksh. 100,000. There are however certain exemptions to this tax e.g. all properties under Ksh. 3,000,000 are exempt from capital gains tax.