Land has limited supply and the demand is increasing daily, therefore ensure you know the trade secrets in land or property Investment. Below are some of terms used in land transactions:
- Title, this is the legal rights to own the property.
- Deed, this is the document that shows who has that right, hence referred as Title Deed.
- Freehold Title, this is where the owner of land has complete freedom over the property. Free from hold of any kind.
- Leasehold Title, this is where the land ownership tenure is limited to 99 years.
- Conveyance, this refers to transfer of ownership from one person or entity to another. This is done using documents such as sale agreement, Title Deed etc
- Stamp duty, this is tax paid to government through KRA when the land is changing ownership.
- Land search, this is done to ascertain the legal owner of the property and if there are any third parties, also it shows land size etc, done at local land ministry offices.
- Power Of Attorney (POA), this is sometimes used during land transactions. This means the attorney is overseeing the transactions has right from the owner to transfer ownership on behalf.
- Capital Gain, this the value land accumulates overtime also referred to capital appreciation, those who land bank or speculate benefit from this.
- Registry Index Map (RIM), this is the map that shows all the land in Kenya and is bought from Survey of Kenya.
