A lot of people dislike going through the process of applying for lands related services because they see it as tedious.
Luckily, the Ministry of Lands no longer accepts manual registry and payments, and all land related payments must be online based.
You can easily search for land online from the comfort of your home or office through the Kenya land registry online search platform, E-Citizen.
The process of lands transfer and registration should take a maximum of 90 days.
In case you are wondering just how to go about it, Kenyans.co.ke has specifically written this article to help you solve this problem.
Note:
A land search should ideally confirm that the person selling the land to you is the legal owner.
It should also confirm that the land has no encumbrances that may include a charge by the bank, a caveat restricting the sale of the land amongst other issues.
Land title deeds are issued by the Deeds Registry under Ministry of Lands.
The document can also be used as collateral when applying for a bank loan or as a bond in court
What is a title deed?
A land title deed is a signed agreement that proves ownership of land and legal rights to it.
Due to the rapid population increase, a lot of free lands are rapidly being converted to plots for residential, industrial or commercial use.
Types of Land Tenure System in Kenya
A title deed also shows the type of tenure a land is under.
This is the act, right or period of holding land.
1. Freehold
It is the greatest interest a person can have on land as it gives the holder absolute ownership of the soil for life.
This means descendants can succeed the owner for as long as the family lineage exists.
A freehold title deed generally has no restrictions as to the use or occupation.
However, there are conditional freeholds, which restrict the use of the land, for instance, for agricultural purposes or ranching only.
A freehold interest is also known as fee simple or absolute proprietorship.
2. Leasehold
This is the interest in land for a specific period subject to payment of a fee or rent to the grantor.
Payment of rates is made to the respective local authority for services rendered.
Leases are granted by the government for public land, the local authority for trust land and individuals with freeholds.
The maximum term of government leases is 999 years for agricultural land and 99 years for urban plots.
It is also common to find 33-year leases with respect to urban trust land.
For freeholds, the period of lease will be as agreed upon between the landlord and tenant.
Once a lease expires, the land or property reverts back to the owner.
A leaseholder can also apply for a renewal or extension of the lease more particularly if he or she wants to redevelop the property and the lease period is about to expire or the remaining period is not enough to recoup the investments.
Different types of land Title Deeds in Kenya
There exist different types of title deeds as per the various types of Land Acts that have been in existence. They include;
1. Indenture Title
This was a title under the Government Lands Act Cap 280 which has since been repealed.
2. Grant Title
This was a government grant under the Registration of Titles Act Cap 281 and a county council grant under Trust Land Act Cap 288. Both have been repealed.
3. Certificate of Title
This is under Cap 281 issued due to subdivision without change of user. Change of user happens when one shifts from, for instance, agriculture to residential.
4. Certificate of Lease:
This is a title under the Registered Lands Act Cap 300 (repealed) for leasehold land.
A leasehold is a form of land tenure where a lessee (occupant) holds rights to land for a specific period and subject to conditions imposed on land rights by the lessor (landowner).
The period can be 33, 50, 66 or 99 years for all urban plots.
5. Absolute Title:
This is a title under the Registered Lands Act Cap 300 (repealed) for freehold land.
This is a form of ownership in which the landowner has the maximum rights in terms of the period of ownership and use of the land.
6. Sectional Title:
This is a title for a unit within a building, for example, a flat. It emanates from the Sectional Properties Act of 1987 and the title is deemed to be registered under the Registered Lands Act Cap 300.
It is important to note that the Land Registration Act, 2012 in Section 26 consolidates the above several titles into the Certificate of Title.
The aim is to rationalise and reduce confusion brought about by previous Land Acts, which resulted in various types of titles existing concurrently.
What are the requirements for applying for land title deed?
- Original valuation report
- Original stamp duty assessment form and payment receipt
- Rates clearance certificate
- Official land search (original)
- Transfer instruments (3 original + copy)
- Copies of national ID and PIN for all parties
- Coloured passport size photographs of all parties
- Consent from the commissioner of lands or land control board
- Original title deed
- Land Rent clearance certificate.
- Foreign national registration certificate- alien card (copy) For foreigners who are residents in Kenya
- Passport (copy) for the applicant if a non-citizen.
Other Required Information
- Name of owner/buyer
- Address of owner/buyer
- Nature of title
- Plot Number
- Approximate area
- Registry map Sheet Number
- Title Number
Summary of the application process is as follows:
- Obtain an official land search
- Pay for land search
- Submit the application for an official land search
- Obtain an official land search
- Obtain land transfer documents
- Contract an advocate
- Submit a request for land transfer documents
- Obtain land transfer documents
- Obtain valuation for stamp duty
- Submit a request for land valuation
- Site visit for valuation
- Obtain valuation for stamp duty
- Stamp duty payment
- Obtain payment slip
- Payment of stamp duty
- Submit documents for franking
- Obtain franked documents
- Land registration
- Pay registration fees
- Submit documents for registration
- Obtain registered documents
How to apply for a Land Title Deed online
Step One: Do an online land search
Log onto the e-Citizen portal E-Citizen and sign up
Click on Ministry of Land, Housing & Urban Development link and choose the land search option
Enter the title number and fill the online land search form Kenya and submit. A search should ideally confirm that: The person selling the land to you is the legal owner.
The land has no encumbrances that may include a charge by the bank, a caveat restricting the sale of the land amongst other issues.
Confirm the details and proceed to pay using the available payment method which can be a debit card, credit card, M-Pesa, or bank transfers.
One is required to pay a fee of Ksh 500 for the search
Once the payment is confirmed, the applicant can proceed to print the results, and if you choose not to, the information will always be available on the portal anytime you log in.
Step Two: Obtain land transfer documents
This step involves contacting a lawyer to facilitate obtaining and notarising the land transfer documents.
Apply, pay and obtain a rates clearance certificate from the County Government.
This is done by the seller’s lawyer through consulting the local county government lands office.
The whole process can take five days at the cost of Ksh 10,000.
This certificate proves that there are no outstanding fees to be paid at the City County’s office. Lawyer’s fees are calculated according to the value of the land.
Upon payment of all outstanding Land Rates at the Local County Governments and upon an application and payment of the prescribed fees. The respective County Governments shall issue a Land Rates clearance certificate.
Step Three: Apply and Obtain Land Rent Clearance Certificate from the Commissioner of Lands.
Upon payment of outstanding Land rent and on an application, the commissioner of lands issues a Land rent clearance certificate. This certificate is proof that there are no outstanding fees to be paid to the County Government
The following documents are required when making requests for land rent clearance certificate; Duly filled application forms in quadruplicate
A complete copy of the title Copy of deed plan Evidence of full payment of the outstanding rent (LRT2 deposit forms, pay-in-slips and most recent rent clearance certificate).
Step Four: Apply and Obtain Consent to transfer from the Commissioner of Lands.
The consent to transfer leasehold land held by the government under the repealed Act is required to be obtained from the National Land Commission.
Upon payment and issuance of Both Land rent certificate and Land rate certificate, an application is made in writing by the lawyer to the commissioner of lands and the prescribed form executed for consent to transfer the desired property.
Upon payment of the prescribed amount, consent to transfer is issued. This process takes nine days at the cost of Ksh 1,000.
Step Five: File the transfer instrument at the Lands Office for assessment of stamp duty payable on the transfer.
The draft transfer is done by the buyer’s lawyer and the transfer instrument has to be approved by the seller’s counterpart before it’s filled at the land’s office to be assessed for Stamp Duty.
After the lawyer's approval, the instrument is submitted for assessment of stamp duty at the Lands Registry.
The stamp duty is 4% of property value for urban lands and 2% for rural lands.
The stamp duty amount to be paid is indicated when the application is filed, but it takes approximately 7 days to obtain the receipt of payment (obligated to pay with a banker’s check) from the bank.
The payment is made directly at the Lands Office.
Step six: Obtain valuation for stamp duty
Receive inspection by a land officer.
Once the draft transfer has been filed at the land office, an inspector visits the site to verify the development and state of the property.
Due to lack of transport, in practice, the inspector often has to be picked up in-person and driven to the site.
There are no prior appointments made and the actual inspection may happen within one day or, in the worst case, one month.
However, note that this time is not limited and in some cases, entrepreneurs may wait months for a valuation.
Once the evaluator has inspected the property, a report is compiled which the value is endorsed on the transfer.
Obtain valuation of the property by Government evaluator.
The inspector visits the site to evaluate and verify the indicated purchase price of the property in order to ensure accurate tax payment. If the assessed value differs from the one indicated by the parties, an additional payment is requested.
Step seven: Stamp duty payment
Endorsement of value for Stamp Duty and assessment of Stamp Duty.
Complete the Stamp Duty from including the purchase price.
The stamp duty assessment officer will then assess the stamp duty payable and indicate the amount on the forms. This takes three days.
Payment of Stamp Duty. It is mandatory to pay the stamp duty with a banker’s check.
The payment is made through commercial banks and the approved banks include the Kenya Commercial Bank and The National Bank of Kenya.
Payment is made to the Commissioner of Domestic Taxes on behalf of the Commissioner of Lands. It takes four days for the Kenya Revenue Authority to confirm receipt of payment.
This Stamp Duty is payable online via the KRA Itax portal.
Submission of the documents for franking/ obtaining franked documents.
After payment of stamp duty, the transfer documents are submitted for franking to confirm that any charges or taxes, such as the stamp duty on those documents have been paid.
How to register Land Titles in Kenya
Pay registration fees.
A payment of Ksh 500 is charged and one is issued with a booking form to fill.
Lodge the completion documents with Lands Office for registration of the transfer
The franked transfer documents are lodged for registration at the Lands Office.
The seller’s lawyer obtains these documents which include; original certificate of Title, Rates Clearance Certificate, Land Rent Clearance Certificate, and the consent transfer. This process takes 12 days.
Ksh 5,000 is charged to obtain process a new title deed certificate.
After successful registration, you will receive the following documents:
- An original title deed with the name of the buyer
- Registered transfer forms
- The pay in slip of stamp duty
- Post-purchase activity
After a week or two, you as the buyer should do another search with the ministry of Lands to confirm that the land is now under your name.
What are land rates?
Land rates are levies imposed on all land parcels paid to the county governments based on the value of your land while the land rent is the amount you spend when your property is on leasehold tenure.
This status is whereby the property owned by the government become leased to you. Therefore, you have to pay ground rents.
Land rates are paid by landowners while leaseholders pay rates.
How to pay land rates online:
Open the browser and visit eCitizen then sign in or sign up to your registered account. Click on the ministry of Land and Urban housing development to click on the land search.
Then just enter your land title number, fill the online form and then submit it. Confirm the details that have been entered and then proceed for making the payment.
Once the payment has been confirmed then you will have the option of printing the results.
