Congratulations! You’ve found your dream property in Kenya, whether it’s a charming bungalow in Nairobi or a scenic plot on the Kenyan coast. But before you celebrate with a celebratory nyama choma (Kenyan barbeque), there’s a crucial legal step – the conveyance process. This guide by Clay & Associates Advocates, a leading law firm in Nairobi, Kenya, provides a clear overview of the conveyance process in Kenya, empowering you to navigate this important stage of property ownership.

What is the Conveyance Process?

Conveyancing refers to the legal process of transferring ownership of land or property from a seller (vendor) to a buyer (purchaser) in Kenya. It ensures a smooth and secure transfer, protecting both parties’ rights. This process involves several key steps:

1. Agreement and Deposit

• Sale Agreement: A written agreement between buyer and seller outlining the purchase price, terms, and conditions of sale is drafted and signed. This agreement is crucial and should be reviewed by a lawyer to ensure it protects your interests.
• Deposit: The buyer typically pays a deposit (usually 10% of the purchase price) to the seller or a licensed real estate agent upon signing the agreement. This demonstrates the buyer’s serious intent and secures the property while the conveyancing process unfolds.

Example: You find a house you love and agree to purchase it for KES 10 million (Kenyan Shilling). You sign a sale agreement with the seller and pay a KES 1 million deposit.

2. Title Search and Due Diligence

• Title Search: A thorough title search is conducted by your lawyer to verify the seller’s legal ownership of the property and identify any outstanding charges or encumbrances (restrictions) on the title, such as mortgages or easements.
• Due Diligence: Your lawyer will also conduct due diligence, which involves verifying property boundaries, zoning regulations, and any potential disputes related to the property.

Example: Your lawyer conducts a title search on the house you’re buying. This search reveals the seller has a legitimate title and there are no outstanding mortgages on the property.

3. Land Rates and Taxes:

• Land Rates Clearance: Outstanding land rates, a form of property tax in Kenya, must be settled before the property transfer can occur. Your lawyer will assist in obtaining a land rates clearance certificate from the relevant County Government office.
• Capital Gains Tax (CGT): For sellers, capital gains tax may apply on any profit made from the sale. Your lawyer can advise on CGT implications and ensure proper compliance.

Example: You discover there are KES 50,000 in outstanding land rates on the house. As part of the conveyancing process, these land rates will be settled before the official transfer.

4. Transfer and Registration

• Transfer Documents: The lawyer prepares the necessary transfer documents, such as the Transfer Instrument and a Land Control Board consent form (if applicable).
• Registration: These documents are then submitted to the Kenya Land Registry for registration. Upon successful registration, the buyer becomes the legal owner of the property.

Example: Your lawyer finalizes the transfer documents and submits them to the Land Registry. After successful registration, you officially own the house!

The Importance of Legal Guidance:

Conveyancing can be a complex process with legal nuances. Here’s why involving a qualified lawyer at Clay & Associates Advocates is essential:

• Protection: A lawyer ensures the sale agreement protects your interests and identifies potential issues before they become problems.
• Expertise: Our lawyers have in-depth knowledge of Kenyan property law and navigate the conveyancing process efficiently.
• Peace of Mind: With our legal guidance, you can approach the property purchase with confidence, knowing your rights are safeguarded.

Don’t Go It Alone!

Owning property in Kenya is a significant investment. Clay & Associates Advocates is here to guide you through the conveyancing process seamlessly.

Contact us today for a consultation to discuss your specific needs and ensure a smooth and successful property transfer.