DUE DILIGENCE: 5 Things Causing New Land Owners Sleepless Nights
It is a Kenyan dream to own a family home. Some prefer to have it close to the city, or at least close to where they work. Others simply want a home away from the busy city life where they can spend the golden days with peace and serenity. Whether you are in the first or second group, we can all agree that the process of building a home is not easy. It is very costly, time-consuming, and stressful…especially if it is your first time. But even before you start building, identifying a piece of land you wish to build on (if you don’t have one already) and paying for it is another strenuous task. This is why it hurts deeply when after all that effort, you find yourself in the above situation when it rains. We would like to tell you that this is the only problem you could face as a new landowner. But it’s not. There are other legal problems that are just as painful. By the time you are done reading this, you will know the FIVE things causing new landowners sleepless nights and how to avoid them. In our legal profession, we have seen many bad things happen to good, innocent, and hardworking Kenyans who only wanted to acquire a good piece of land to build a home or rental property. This is why we will always insist you do thorough due diligence to avoid losing your money to a fraudulent deal. The case of flooding land is sometimes tricky to assess because it can happen out of natural and unforeseen causes. In most cases, however, the seller fails to disclose this information so they can make the sale. In the due diligence process, there is a clause that requires the land seller to disclose any defect on the piece of land before the final transactions. This is why you should be well-versed in the due diligence process. If you did not get an opportunity to engage with our previous article on due diligence, click here and get informed. As I mentioned earlier, flooding land is NOT the only problem that can make you regret your investment decision as a new landowner. We have five more legal issues that you be cautious of when buying land or any other property. By getting acquainted with this, you will be better than 80% of Kenyan land buyers who are most likely to fall victim to the same. The five legal issues you need to watch out for… INTERESTS This is the most obvious thing to check, but also what many people miss. Some properties contain fines, accumulated land rates, and other arrears that were not settled, which you inherit as the new land owner. In some cases, it may be more than what was paid for when purchasing the property. PROHIBITIONS This is one of the least known laws by the general public regarding land. It’s not always the case that when you buy land, you can do anything you want with it. Some places are designated for commercial purposes, others for agriculture, and most for residential […]
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