When buying or selling land or property in Kenya, there are several additional costs beyond just the purchase price that you need to factor into your budget. Being aware of these extra fees and expenses is crucial for proper financial planning. Let\u2019s go through the main costs involved.<\/p>\n\n\n\n
If you enlist a real estate agent to help you find a property or a buyer, you\u2019ll be responsible for their commission. Agent fees are generally negotiable but typically range from 2-5% of the sale price. This \u201ccommission\u201d fees is separate from the property transfer and legal costs.<\/p>\n\n\n\n
Here is a table of commissions that you should factor in.<\/a><\/p>\n\n\n\n During due diligence, your lawyer may need to obtain several documents, including:<\/p>\n\n\n\n \u2013 An official search from the relevant land registry<\/p>\n\n\n\n \u2013 A certified copy of the greencard from the relevant land registry<\/p>\n\n\n\n \u2013 A certified copy of the Registry Index Map from the Survey of Kenya<\/p>\n\n\n\n \u2013 A Survey Report from a licensed Surveyor<\/p>\n\n\n\n These costs vary from registry to registry and are typically borne by the buyer. You may also search directly on Ardhisasa.<\/a><\/p>\n\n\n\n Types of Title Deeds and how to obtain them<\/a><\/p>\n\n\n\n Ensure that all utility bills, such as water and electricity, are settled by the seller before the transfer of ownership. Unpaid bills can be transferred to the new owner.<\/p>\n\n\n\n \u2013 Land Rates<\/strong>: Collected by the County Government where the land is situated.<\/p>\n\n\n\n \u2013 Land Rent<\/strong>: Collected by the Ministry of Lands and Physical Planning.<\/p>\n\n\n\n \u2013 Payment of Accrued Rates and Rent<\/strong>: Ensure that the seller settles all outstanding rates and rent before transfer, as liability shifts to the new owner.<\/p>\n\n\n\n \u2013 Definition<\/strong>: A mandatory tax charged on property transfers in Kenya<\/a>.<\/p>\n\n\n\n \u2013 Determination<\/strong>: The market value of the property is determined by a government or private valuer.<\/p>\n\n\n\n \u2013 Exemptions<\/strong>: Transfers between spouses, deceased person\u2019s property to beneficiaries, and certain other transactions.<\/p>\n\n\n\n \u2013 Payment<\/strong>: Borne by the purchaser and collected by the Kenya Revenue Authority.<\/p>\n\n\n\nSearch (Due Diligence) Costs<\/strong><\/h2>\n\n\n\n
Utility Costs<\/strong><\/h2>\n\n\n\n
Consents<\/strong><\/h2>\n\n\n\n
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Land Rates and Rent<\/strong><\/h2>\n\n\n\n
Stamp Duty<\/strong><\/h2>\n\n\n\n