Are you considering investing in land in Kenya? A title deed is one of the most important documents in the land buying process in Kenya. I am Maurine from Zenawi Real Estate here to talk to you about the two types of title deeds!
What is a title deed?
A title deed is a legal document that proves ownership of a specific piece of land or property. It contains important details about the land or property, such as its location, size, and boundaries, as well as the name of the owner. In Kenya, title deeds are issued by the government through the Ministry of Lands, and they serve as proof of ownership of a piece of land.
Types of title deeds
A mother title is the original title deed of a piece of land (parcel) before subdivision into smaller holdings (plots) while an individual Title deed is the specific documentation for a specific piece of land(plot) after subdivision. When buying land in Kenya, it is important to insist on plots with ready individual title deeds and here is why:
Reasons Why Individual Title Deeds Are Important:
- Individual Title Deeds Provide Precise Information
Before buying any piece of land, it’s essential to conduct due diligence, which involves performing a title search. This search will provide you with crucial details like the size of the land, location, and rightful owner. However, a mother title doesn’t provide this information, making it difficult to know whether you’re buying the right and legal piece of land or not. Always insist on an individual title deed to avoid such uncertainties.
- Mother Titles Can Create Investment Barriers
According to Kenyan property laws, you only have the right over a piece of land when you have it registered under your name. So, investing in land with a mother title can be risky as it denies you the right to carry out any business on the land in the future.
- Individual Title Deeds Make It Easier to Access Loans
As a landowner, you might need to acquire financial boost from time to time, particularly from financial institutions like banks and SACCOs. Title deeds are commonly used as collateral for such transactions, but banks and SACCOs require an individual title deed. Having a mother title deed can prevent you from accessing such benefits.
- Individual Title Deeds Facilitate Easy Ownership Transfer
If you’re investing in land banking, which is holding a piece of land for some time until it appreciates and then reselling it, having an individual title deed is essential. When selling the plot, an individual title deed makes it easy to transfer ownership with minimal mutation processes. However, a mother title deed will require numerous mutation processes, making the transfer process complicated.
In addition, buying a plot from a seller who only has a mother title will force you as a buyer to wait until the whole land is sold for you to get your title.
So, in conclusion, if you’re considering buying land in Kenya, always insist on an individual title deed before any transaction.
At Zenawi Real Estate, we understand the importance of individual title deeds when buying land. This is why all our plots have READY INDIVIDUAL TITLE DEEDS that are transferrable in 30 working days after completing payment. We have 40 by 90 prime plots available in Juja Farm with individual title deeds.
Wishing a Happy and stress free land buying process to you!