Most of us have heard how some of our close friends or members of family or a friend of a friend have been scammed out of buying land.
Buying property is a significant investment, and in Kenya’s booming real estate market, many buyers are always eager to jump at good deals.
However, there’s one common mistake that many property buyers in Kenya make, failing to conduct thorough due diligence on the property. This seemingly simple oversight can lead to legal disputes, financial losses, and, in some cases, complete loss of the property.
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What is Due Diligence?
Due diligence is the process of thoroughly investigating a property before finalizing a purchase. It involves checking the legal status of the property, confirming ownership, verifying that all taxes and rates have been paid, and ensuring there are no encumbrances such as mortgages or legal disputes. Simply put, due diligence is your protection against any hidden risks associated with the property.
READ MORE: Why Due Diligence is Essential in Property Transactions
The Common Mistake: Overlooking Legal Checks
Many property buyers in Kenya trust the seller’s word and rely on verbal agreements. This leads them to rush to close the deal without seeking any professional advice. This excitement of acquiring property can cloud judgment which will lead to critical errors. Some of them include:
- Failing to Verify Ownership – First time buyers often skip verifying the title deed and ownership details. This could lead to purchasing land from fraudsters or individuals that don’t have legal ownership.
- Ignoring Encumbrance Checks: An encumbrance is a legal claim on the property, such as a loan or legal dispute. Buyers often forget to check whether the land has any restrictions or outstanding loans tied to it.
- Skipping a Survey: Confirming the physical boundaries of the land is vital to avoid disputes with neighbors or buying land smaller than advertised.
How to Avoid the Mistake
- Conduct a Title Search: Visit the Ministry of Lands or use an authorized professional to conduct a title deed search. This process will confirm the current owner of the property and whether the title is clean.
READ MORE: A Beginner’s Guide and Legal Process to Buying Land In Kenya - Engage a Lawyer: A qualified real estate lawyer can review the sale agreement, advise you on the legal process, and ensure that your interests are protected. They will also help you navigate the transfer process and check for encumbrances.
- Physical Inspection and Survey: Before finalizing the deal, physically inspect the property. Additionally, hire a licensed surveyor to confirm the boundaries and ensure the property matches the description in the title deed.
- Verify Property History: Check the history of the property, including past ownerships, and confirm that all land rates and taxes have been paid to avoid inheriting unpaid liabilities.
READ MORE: 10 Common First Time Homebuyer Mistakes to Avoid
Conclusion
The most common mistake when buying property in Kenya—failing to perform due diligence—can have costly consequences.
To safeguard your investment, always take the time to verify the property’s legal status, engage professionals for advice, and ensure all the necessary checks are completed. While this process may seem tedious, it’s the best way to ensure you’re making a sound investment in Kenya’s real estate market.
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