YOU DON'T NEED FULL CASH TO BUY LAND

One of the most common question we get from our clients every time we advertise a piece of land, is whether they can have an allowance to buy the plot on installments. So today we purposed to give you some insights on land buying.

Actually, if you have ever bought a piece of land, you will notice that there are some government laid down procedures that the process has to go through until the piece of land is finally put on your name as the owner.

There are three modes of processing a piece of land under purchase that one may engage in depending on the state in which he found it while buying.

1. Transfer. 

This is the easiest mode of land buying. Here, the piece of land in which you are buying is already processed and already has its on title. You will only under one procedure through the board to change names from seller to buyer. Plots with ready titles tent to be slightly expensive because someone has already completed all the processes for you.

2. Subdivision.

This is a process where you are buying a portion of land from an existing piece of land that already has a single title. This one is slightly a longer process compared to transfer, but it's simpler, because the seller only needs to go and reproduce two titles, one to remain with the remaining portion of land, and the other new title for the new piece of land that has been cut off for selling. The process is 

slightly longer but not hectic or complicated.

3. Succession.

This is slightly the most scary process of buying land. However, it all depends with the kind of family you are joining to buy land.

Succession, is a process where you are buying a piece of land that has not yet received the title deed to be in custody with the person selling. For instance, a son selling you s piece of land which the title is still under their parent. This means that you will join the family que in processing of title deeds for each person with a piece of land.

Now, here you must be very careful, first you must vet the kind of family you want to join as a buyer if the land is still under succession. Succession processes has had some bad impact on land buyers in some quarters, hence majority of buyers today opting mainly to buy land with ready titles.

For one to buy a piece of land or plot, you don't need full amount of money. Though different sellers have different wishes, it's wiser to pay amount in portions until you have full papers in your hands. Don't pay everything at once.

Few things to consider when buying land:

1. Once you view an advertised land and agree on amount with seller, request for the number to do the search and ascertain the genuineness or the existence of the piece of land and the registered names or company. Then bring your surveyor to check for you the exact measurements and demarcations of the land.

2. Draft an agreement with the seller on the mode of payment, either once, or in two or three instalments. In case it's instalments, elaborate in the agreement, how long it should take for all the amount to have been settled, versus by when you should be able to have the papers ready for full custody of the piece of land.

In this agreements, it's important that both parties have witnesses. It's more 

professional to do the agreement and signing with a lawyer in town. Do not be afraid of lawyers fees, they are negotiable and it also depends with size and amounts involved. Do not accept to do verbal agreements, it must be written down and signed.

3. Agree on the payment date, and ensure 

the payments are done through the bank, 

and the transaction should be well stated 

on the bank slip, 

e.g. "Ksh. 400,000, down payment for a piece 

of land Reg. No........ being purchased by Mr. 

XXX ID no…, from Mr. YYY." of ID No…

This is important for easier bank retrieval in 

case of a dispute in future. 

4. If the land is still undergoing boards to 

process the numbers, kindly agree with the 

sellers, whether you will be contributing fi-

nancially during the board meetings or 

whether the purchase price you are offering 

for the land is all inclusive for the number/

board processes. Be clear from onset to 

avoid conflicts in future.

Averagely, once you agree on the purchase of 

land, you should be able to pay at least three 

quarters of the total amount, the remaining 

to be completed once the number/title pro-

cess is complete for your full ownership of 

the land. Once the first main instalment is 

paid as agreed, you should be in position to 

fence off the property and begin your pro-

jects as you wait for processes to complete 

in a few months. Ensure this is well captured 

in the agreement so that you are free to start 

using the land. Ensure you have been given 

good access roads to your property too.

Ensure that you stick to the agreement espe-

cially on the payment modalities.

Note: If you agreed with the seller to pay the 

amount in three lump sum instalments for 

instance, do not start sending him Ksh. 

10,000 from your monthly salary/savings and 

claim later to have paid him. You may be 

creating a future court battle. The better way 

is to set a savings kitty and save monthly and 

pay him in lump sum as agreed.

Remember this is not a bank loan or mort-gage, therefore, if the seller had planned to use the money to purchase another property else where, he won't manage with little Ksh. 

10,000 that you will be sending monthly. This is suicidal. He may end up a squatter in your land. Therefore, pay in lump sum.

We hope this guidelines help you in your future plot/land hunting. We shall purpose to 

improve on our insights each and every time as we update you on properties.

By The Director.

Kareps Properties.