A fact that many of us seem to always forget is this: most land transactions in Kenya will usually set you back by a minimum of 2 Million Shillings. That is a lot of money.
It's like buying a house or a car. Many of us transacting in these, do A LOT and A LOT of research. We thoroughly look into what we are buying and the quality of it. We ensure that we have other houses or cars to compare them with in terms of location, specifications or even the build. We even ask around and see what various professionals in relevant industries think about the house or car that we want to buy.
Suddenly when it comes to buying land, somehow we through all caution to the wind.
The reality of land transactions in Kenya is that most buyers (and sellers too) find themselves frustrated and lied out of their hard-earned money. Many of us rely on these when buying land. We are either;
- Using a random broker to give you information about the land and help you transact with the seller. The services that brokers offer can be cheap but that should always be a sign that the broker is not a professional This is especially so if they have no qualifications relevant to the transaction; OR
- Bribing Land Officials. This tactic is highly dangerous. Not only can you be imprisoned for this but someone who you can bribe will be bribed by another and they will instantly forget what they were to do for you..
The most important thing you can do when you want to buy that piece of land is SEE YOUR LAWYER ( I talk about how to choose a lawyer in the article below. Click the link to read more.)
Involving your lawyer every time you want to buy (or even sell) land is crucial. Your lawyer will protect your interests as a buyer because that is their job.
In addition to this, here is what your lawyer will do for you as a buyer:
- Tax Liabilities - Your lawyer will let you know your tax liability and at what point in the transaction they fall due. There are 2 types of taxes in land transactions; Capital Gains Tax and Stamp Duty. One falls on the buyer and the other on the seller. Many buyers find themselves paying for both because they did not know.
- Sale Agreement - Your lawyer will invite the seller and yourself to a session where where you will agree on the terms of the land transaction - the sale agreement. Many people let their brokers draft this document for them and this is the most dangerous thing you can do. As we said earlier, brokers are not professionals. Therefore, they will not include the legal and technical terms that should appear in the sale agreement. This then means that your interests as a buyer are not protected. This is especially how most buyers lose their money.
- Process Guide - Even before you start buying the land, your lawyer will inform and be your guide in the step-by-step process of the entire transaction. Every transaction can have a different process. At our firm, for example, there are no 3 consecutive land transactions that have the same process.
- Necessary Documentation - Your lawyer will tell you all the documentation you need to bring at the transaction as the buyer. Furthermore, they will inform you of the documents you need to be given by the seller at the end of the land transaction.
In conclusion, I believe we can all agree that all land transactions need a lawyer. A lawyer will protect your interests and ensure you have a happy and stress-free transaction.
For all your land transactions ,call us . Book a consultation through this website and we will be happy to help.
