Property ownership is one of the greatest investments for investors. When purchasing property in Kenya, one of the most important documents you will receive is the title deed. The title deed is a legal document that serves as proof of ownership of the property. It is important to understand the different types of title deeds that are available in Kenya, as they have different implications for the property owner. In this blog post, we will explore the different types of title deeds available in Kenya and what they mean for property ownership.
a) Certificate of Lease
A certificate of Lease is a legal document issued by the government that grants the holder the right to occupy and use a piece of land for a specified period of time. It is a type of leasehold title that is commonly used for government-owned land or land owned by large estates. Here’s what you need to know about the Certificate of Lease in Kenya:
Duration of the Lease: The Certificate of Lease typically lasts for a period of 99 years, which is renewable upon expiry. The lease period starts from the date of issuance of the Certificate of Lease.
Conditions of the Lease: The Certificate of Lease contains certain conditions that must be met by the leaseholder. For instance, the leaseholder must use the land for the purpose specified in the lease agreement. Additionally, the leaseholder must comply with any other conditions that are specified in the lease agreement, such as paying rent and maintaining the land in good condition.
Conversion to Freehold: The leaseholder has the option to apply for conversion of the Certificate of Lease to a Freehold Title. However, this process is subject to approval by the government and may involve payment of a conversion fee.
Transfer of the Lease: The leaseholder has the right to transfer the Certificate of Lease to another person, subject to compliance with the conditions specified in the lease agreement. The transfer process typically involves obtaining consent from the government or estate owner, and payment of a transfer fee.
Termination of the Lease: The government or estate owner has the right to terminate the Certificate of Lease in case of breach of the conditions specified in the lease agreement. Termination can also occur upon the expiry of the lease period unless the lease is renewed.
b) Certificate of Title
A certificate of Title is a legal document that shows proof of ownership of a piece of land. It is a form of freehold title that grants the holder the absolute right to use, transfer, or sell the property without any restrictions or conditions. Here are some key details you need to know about the Certificate of Title in Kenya:
Issuing Authority: The Certificate of Title is issued by the Ministry of Lands and Physical Planning in Kenya. It is issued after the process of land registration, which involves conducting a search on the land, verifying the ownership, and determining the boundaries of the land.
Contents of the Certificate: The Certificate of Title contains important information about the property, including the name of the owner, the location of the property, the size of the property, and any encumbrances or restrictions on the property. It also includes a diagram that shows the boundaries of the property.
Transfer of Ownership: The Certificate of Title is a legal document that can be transferred to another person through a process of land transfer. The transfer of ownership involves the signing of a transfer form, payment of a transfer fee, and registration of the transfer with the Ministry of Lands and Physical Planning.
Encumbrances: The Certificate of Title may have encumbrances or restrictions, such as easements, mortgages, leases, or caveats, that affect the ownership and use of the property. It is important to conduct a search on the property before purchasing or transferring ownership to identify any encumbrances that may affect the ownership or use of the property.
c) Absolute Title Deed
In Kenya, an Absolute Title is a type of land ownership that grants the holder complete and unconditional ownership rights to a property. It is also known as a fee simple title and is the highest form of land ownership in the country. Here are some key details you need to know about Absolute Title in Kenya:
Issuing Authority: The Absolute Title is issued by the Ministry of Lands and Physical Planning in Kenya. It is issued after a rigorous process of land registration, which involves conducting a search on the land, verifying the ownership, and determining the boundaries of the land.
Ownership Rights: The Absolute Title grants the holder complete and unconditional ownership rights to the property. This means that the holder has the right to use, transfer, lease, or sell the property without any restrictions or conditions.
Encumbrances: The Absolute Title may have encumbrances or restrictions, such as mortgages, leases, or caveats, that affect the ownership and use of the property. It is important to conduct a search on the property before purchasing or transferring ownership to identify any encumbrances that may affect the ownership or use of the property.
Transfer of Ownership: The Absolute Title can be transferred to another person through a process of land transfer. The transfer of ownership involves the signing of a transfer form, payment of a transfer fee, and registration of the transfer with the Ministry of Lands and Physical Planning.
Taxation: The owner of the property with Absolute Title is subject to property taxes, which are assessed and collected by the County Government in which the property is located.
