Supreme Court: Allotment Letter is not a Title Deed
In
SC Petition No. 5 (E006) (Torino case) (22nd September 2023), the Supreme Court
ruled that an allotment letter is not capable of conveying interest in land, it
is merely an offer waiting for the conditions set out in it to be fulfilled.
These conditions may include but not limited to payment of a stand premium and
ground rent within specified time-frames. However, even after the completion of
the conditions laid down in an allotment letter, the allottee cannot transfer
valid title to another person unless and until he has acquired title to the
land by registration under the relevant law.
Read:
Key
Steps in the Process of Buying Land in Kenya
Allotment
letters are not title deeds and cannot be transferred from one person to
another. This verdict simply states that the Allotment Letter does not
constitute a title deed. If you are a purchaser of property in land, you should
do your due diligence to ensure that you receive a valid title deed for any
land. This is because you canât rely on the principle that title cannot be
transferred if the original allocation of land was unlawful or non-procedural.
Also Read: Letter
of Authorization to Source Real Estate
The
importance of this judgment is due to the fact that many Kenyans living in
Coastal, Kajiado and Juja, Nairobi (Embakasi & Starehe) as well as other
areas of the country have Allotment Letter and Title deeds that they are trying
to transfer. Many devastated buyers wind up in court when they find out that
they don’t have valid title deeds for their property. Therefore, it is wise to
do proper Due diligation to prevent land fraud.
Allotment
Letter holders can transfer land as soon as they register with Ardhisasa
under National Land Commissions Services to obtain a valid title deed to land.
In
Torino, before the judgment of the Supreme Court, the case had already been
decided by the Supreme Court (Supreme Court Constitutional Petition No 38 of
2011), and the Civil Appeal (Civil Court).
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