Peace of Mind When Buying: How to Ensure a Clean Property Title
Buying a property is an exciting step, but it's crucial to ensure the property is free of encumbrances (debts) and legal issues.
REBP
Buying a property is an exciting step, but it's crucial to ensure the property is free of encumbrances (debts) and legal issues. Inheriting someone else's problems can be a nightmare. Here's how to safeguard your investment:
1. Engage a competent lawyer
This is paramount. A lawyer experienced in property law will conduct a thorough title search. This involves examining the property's history in the Land Registry to identify any outstanding loans, disputes, or restrictions on ownership. Don't rely solely on the seller's word – have your lawyer verify everything.
2. Scrutinize land ownership documents
Request copies of the seller's title deed, land registration certificate, and any associated approvals. The lawyer will meticulously examine these documents for any red flags, such as:
Charges: These indicate outstanding debts secured against the property.
Caveats: These are temporary restrictions placed on the land, potentially due to ongoing legal disputes.
Restrictions: These may limit how you can use the property, such as zoning restrictions.
3. Verify land rates and rent payments
Outstanding land rates and rent can lead to the property being seized by authorities. Ensure the seller provides receipts proving these are up-to-date. Consider including a clause in the sale agreement stating the seller is responsible for any outstanding dues.
4. Conduct a physical inspection
While a title search focuses on legal issues, a physical inspection is crucial. Look for signs of structural damage, boundary disputes with neighbors, or unauthorized construction.
5. Beware of verbal agreements
Everything should be documented. Verbal agreements hold little weight in court. Your lawyer will draft a watertight sale agreement outlining the terms and conditions of the purchase, including resolving any encumbrances before transfer.
Additional Tips
Consider Title Insurance
While not yet commonplace in Kenya, title insurance can offer some financial protection against unforeseen legal issues.
Research the Seller
Investigate the seller's reputation, particularly if dealing with an individual.
Remember
Due diligence is key. By taking these steps, you can ensure you're buying a property free of unwanted baggage and secure peace of mind for your future.
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