Don’t Get Conned – Red Flags to Watch Out for When Buying Land in Kenya

Buying land in Kenya is a significant investment, and navigating the process can be daunting. Unfortunately, unscrupulous sellers and land grabbing schemes can pose a real threat. To protect yourself and ensure a smooth transaction, it’s crucial to identify red flags and take appropriate precautions.

Red Flags to Watch Out For:

1. Questionable Ownership:

1. A String of Brokers: If multiple brokers introduce you to the seller, with none offering a direct meeting, it’s a red flag. Always deal with the legal owner.
2. Seller Company Selling Another’s Land: Beware of companies selling land they don’t own. Get a lawyer to verify ownership through official land records.
3. Undocumented Inheritance: If the land belonged to a deceased person, ensure succession proceedings are complete before proceeding.
4. Unverifiable Ownership: Always verify ownership through a land search at the Ministry of Lands.  Consider a green card search to check for encumbrances on the land.

2. Questionable Identity:

1. Absent Seller:  A seller unwilling to meet in person raises red flags.
2. Unreachable Owner: If the seller claims to be an agent for an unreachable owner, proceed with caution.
3. Unverified Company:  Get a lawyer to do a company search to confirm the seller’s legitimacy and good standing.
4. Shady Directors: Research the seller company’s directors. A history of involvement in land disputes is a warning sign.
5. Mismatched Identity: Ensure the seller’s ID matches the land ownership records.
6. Evading Spousal Consent: For married sellers, ensure their spouse consents to the sale, especially for matrimonial property.

3. Questionable Documentation:

1. Incomplete Title Deeds:  A seller hesitant to provide a complete and clean title deed is a red flag.
2. Refusal for Due Diligence:  If the seller refuses access to documents for proper due diligence, walk away.
3. No Written Agreement:  Never proceed without a written Sale Agreement outlining the terms and conditions, signed by all parties.
4. Fake Title Deeds:  Always conduct a land search to verify the title’s authenticity.

4. Urgency in Payment

1. Full Payment Before Documentation:  Never pay in full without a documented agreement and verified ownership.
2. Refusal for Payment Undertaking:  A seller objecting to a payment undertaking guaranteeing completion upon meeting agreed-upon conditions is suspicious.
3. Objection to Stakeholders:  Insist on a reputable lawyer holding onto funds until registration is complete. This protects your interests.
4. No Refund Policy:  A seller offering no refunds raises red flags, especially if the transaction falls through due to their fault.

5. No Professionals Involved

1. Unqualified Lawyer:  Always work with a licensed and reputable lawyer who specializes in property law. They can identify potential risks and ensure legal compliance.
2. Seller Opposing Lawyers:  A seller objecting to legal involvement raises red flags. Legal representation protects both parties.
3. No Surveyor:  Engaging a qualified surveyor is crucial to confirm the land’s authenticity, size, location, and beacons.

How to Avoid These Red Flags

1. Know Your Seller:  Request identification documents (ID for individuals, CR12 and Certificate of Incorporation for companies). Get a lawyer to verify their details and to conduct a company search if applicable.
2. Meet the Seller:  Insist on a physical meeting to confirm you’re dealing with the rightful owner.
3. Scrutinize Documents:  Request a complete copy of the title deed and conduct a land search and green card search.
4. Physical Inspection:  Visit the land to verify its location and identify beacons.
5. Consult Locals:  Talk to the local administration (chief) and neighbours to gather information about the land and any potential disputes.
6. Land Status:  Ensure the land isn’t undergoing subdivision, has no ongoing succession disputes, or isn’t subject to court litigation.

Additional Tips

Be Wary of Misleading Marketing:  Don’t be swayed by exaggerated claims or unrealistic offers. “Ready title” might not be the actual title type for your purchase. Verify details with your lawyer.

Remember: The above is not specific legal advice for you. Always consult a lawyer to determine the best option for your specific situation

 © MMTK Law

info@mmtklaw.com | +254 700 720011