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Due Diligence in Home and Property Ownership in Kenya.

ByComplete Circle Properties

Featured Image: New Rise Apartments in Syokimau. Visit our properties page for more.

Conducting due diligence for home and property ownership in Kenya is a crucial step to ensure you are making a sound investment. Here’s a detailed guide on the due diligence process specific to Kenya:

1. Title Search and Verification

  • Conduct a Title Search: Visit the Ministry of Lands or use online platforms to verify the title deed. Confirm that the seller is the legitimate owner and check for any encumbrances, such as mortgages or liens.
  • Obtain a Certified Copy: Get a certified copy of the title deed and the Green Card, which is the official record of land ownership and history.

2. Survey and Boundary Confirmation

  • Engage a Licensed Surveyor: Hire a licensed surveyor to confirm the property’s boundaries and ensure there are no encroachments or boundary disputes.
  • Check Survey Plans: Obtain and review the survey plans from the Survey of Kenya to verify that the physical boundaries match the documented ones.

3. Zoning and Land Use Regulations

  • Verify Zoning Regulations: Check with the local county government to ensure the property is zoned for your intended use. Confirm compliance with local land use policies and regulations.
  • Understand Restrictions: Be aware of any covenants, conditions, and restrictions (CC&Rs) that may affect the property.

4. Physical and Environmental Inspection

  • Conduct a Physical Inspection: Inspect the property’s condition, including the structure, plumbing, electrical systems, and any other essential features. Hire a professional inspector if necessary.
  • Environmental Assessment: Ensure there are no environmental issues such as soil contamination, pollution, or flood risks. This may require engaging environmental experts.

5. Legal and Regulatory Compliance

  • Check Planning Approvals and Building Permits: Verify that any existing structures have the necessary planning approvals and building permits. Ensure compliance with building codes and regulations.
  • Obtain Necessary Consents: If the property is agricultural land, obtain Land Control Board consent for the transaction.

6. Financial Due Diligence

  • Confirm Tax Payments: Ensure all property taxes are up to date. Obtain a land rates clearance certificate from the county government.
  • Review Sale Agreement: Have a qualified lawyer review the sale agreement. Ensure all terms and conditions are clearly stated, including the purchase price, payment terms, and any contingencies.

7. Utility and Infrastructure Checks

  • Verify Utility Connections: Confirm that the property has access to essential utilities such as water, electricity, and sewage systems.
  • Check Infrastructure: Assess the condition and availability of infrastructure such as roads, drainage, and communication networks.

8. Market Analysis and Valuation

  • Conduct a Comparative Market Analysis: Compare the property with similar properties in the area to ensure you are paying a fair price.
  • Property Valuation: Consider getting a professional valuation to determine the property’s market value accurately.

9. Review of Property Documents

  • Obtain Relevant Documents: Ensure the seller provides all necessary documents, such as the land search certificate, clearance certificate, and any other relevant records.
  • Verify Authenticity: Check the authenticity of all documents provided by the seller.

10. Finalizing the Purchase

  • Legal Representation: Engage a lawyer to guide you through the transaction process, including drafting and reviewing contracts and ensuring compliance with legal requirements.
  • Transfer and Registration: Follow the proper process for property transfer, including signing transfer documents in the presence of a lawyer and registering the transfer at the Land Registry.
  • Payment and Stamp Duty: Make the necessary payments, including the purchase price and stamp duty, and obtain a receipt for the same.

By following these steps, you can mitigate risks and ensure a smooth and secure property purchase in Kenya.

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