DIFFERENT TYPES OF TITLE DEEDS IN KENYA
The various types of title deeds essential for providing informed guidance to clients and ensuring smooth transactions. In Kenya, land ownership is governed by different types of title deeds, each with its own characteristics and implications. In this post, we'll explore the main types of title deeds.
Certificate of lease
This is a ownership document for leasehold property. It’s normally issued when someone is renting a place that he or she plans to stay for a period of time. The occupants are given rights for a specific period of time. In Kenya, the maximum number of years that one is allowed to lease land is 99 years.
Sectional title deed
This is a title unit that’s issued to a part of a building or a separate building on a piece of land that has been converted into a section scheme. This very title guarantees one that they own an apartment or flat that they recently acquired its proof that it’s yours.
Freehold Title Deeds:
Freehold title deeds confer absolute ownership of land and any structures on it. Holders of freehold title deeds have perpetual rights to the land, with no restrictions on its use or transfer. Freehold titles are commonly issued for residential, commercial, and agricultural properties, providing owners with a high level of security and control over their land.
Leasehold Title Deeds:
Leasehold title deeds grant the holder the right to use the land for a specific period, as stipulated in the lease agreement. Lease periods typically range from 33 to 99 years, although longer leases are also possible. While leasehold properties offer certain rights to the lessee, including the right to develop and transfer the lease, ownership ultimately reverts to the landowner at the end of the lease period unless a renewal is negotiated.
Sub-Lease Title Deeds:
Sub-lease title deeds arise when a lessee subdivides and leases out portions of the land to other parties. These sub-leases are typically for shorter periods than the original lease and are subject to the terms and conditions of the master lease. Sub-lease arrangements are common in developments where larger parcels of land are allocated to developers for subdivision and subsequent sale or lease.
Grant Title Deeds:
Grant title deeds are issued by the government for specific purposes, such as settlement schemes or public projects. These deeds confer ownership rights to individuals or organizations for land allocated by the government, often with conditions attached regarding land use and development.
Government Allotted Title Deeds:
Government allotted title deeds are issued for land allocated by the government, typically for resettlement programs or public development projects. These deeds grant beneficiaries the right to occupy and utilize the land, subject to any conditions imposed by the government.
Conditional Title Deeds
Conditional title deeds come with specific conditions or restrictions attached, such as limitations on land use or development requirements. These conditions must be adhered to by the titleholder, failing which the land may be subject to forfeiture or other penalties.
Private Developer Title Deeds:
Private developer title deeds are issued by developers for land within their developments, such as gated communities or housing estates. These deeds often come with specific covenants and restrictions aimed at regulating the use and development of the land within the development.
Understanding the nuances of each type of title deed is crucial for clients searching for in Kenya's real estate market. By guiding clients through the intricacies of land ownership and facilitating transactions with clarity and confidence, realtors can help clients make informed decisions and navigate the complexities of property acquisition and ownership in Kenya.
