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Real Estate Contracts

A real estate contract is the area of law that governs binding agreement between two or more parties for selling, buying, or any other type of real estate transaction. This document outlines the rights to possess, transfer use and enjoy land and the permanent manmade additions attached to it. They form the base of legal action that can be taken if any of the parties does not fulfil the terms of the contract.

Our diverse experience provides cost effective, real estate legal services across Kenya and other foreign jurisdictions. Through our networks, we ensure our clients obtain all the relevant approvals from relevant government agencies.

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Some of the categories of laws that regulate the real estate in Kenya include:

  • Land Registration
  • Foreign and local investment of real estate in Kenya
  • Property identification
  • Negotiation and sale agreement
  • Transfer of property ownership and stamp duty
  • Permission to develop

Land Registration

In Kenya, land is registered under; The Land Act, National Land Commission Land and Land Registration Act.

Foreign and local investment of real estate in Kenya

Companies with shareholders who are non-citizens are barred from owning property on freehold tenure. The law provides that they can own property on lease for a maximum period of 99yrs.

Property identification

It is essential for a purchaser to obtain copies of the National Identity Card and property title from the seller and carry out in-depth search at lands office and Registration of Persons Bureau. It is extremely important to verify that the owner is truly the titleholder of the property.

Negotiation and sale agreement

After conducting in-depth searches it should be followed by negotiations on terms of sale. The negotiations should entail deliberations about the price of property and terms of payment.

Transfer of property ownership and stamp duty

Once the buyer’s advocate has prepared the transfer, both parties approve and sign.

Permission to develop

When the property owner anticipates to develop the property, he or she is obligated to visit the relevant local authority and obtain the requisite development authorization.