Purchase and Sale of Land Transactions
Property Search
A prospective buyer should obtain a copy of the land title deed from the seller to conduct a search at the Land Registry where the land is located. A land search helps verify ownership and determine whether the land has any encumbrances.
Section 34 of the Land Registration Act and Section 7(2) of the Land Act provide for a formal search as follows:
- Any person requiring an official search for a parcel of land is entitled to receive particulars of the subsisting entries in the register, certified copies of documents, the cadastral map, or a plan filed in the registry upon payment of the prescribed fee.
A land search in Kenya costs Ksh 500 and can be conducted online via the Ardhisasa platform or physically at the respective land registries.
Sale Agreement
Once a Certificate of Search is issued and the purchaser is satisfied with the land particulars, the parties proceed to execute a sale agreement.
The sale of land involves a contract between the seller and buyer. For a sale transaction to be valid, it must fulfill the essential elements of a contract: offer, acceptance, consideration, capacity to contract, legality, and an intention to create legal relations. Without these elements, the sale of land is void and unenforceable.
A written sale agreement is mandatory and must be executed by both parties in the presence of witnesses. Without a written agreement, a land sale is unenforceable in court in case of a dispute. The agreement outlines the terms of payment and governs the general relationship between the vendor and purchaser.
Completion
Completion is the stage in a conveyancing transaction where the necessary title documents are exchanged for the balance of the purchase price. The sale agreement remains executory until the interest in land is formally transferred through stamping and registration of the transfer document.
Before registration, the vendor expects full payment, while the purchaser expects to receive all registrable documents. This exchange process is known as completion.
Transfer
The purchaser’s advocate registers the transfer of land at the Land Registry. Upon completion, the purchaser’s name is officially recorded as the rightful owner of the land.
