Certificate Of Title Vs Title Deed Kenya

Certificate Of Title Vs Title Deed Kenya

Certificate Of Title Vs Title Deed Kenya

In Kenya, a “certificate of title” and a “title deed” are related to land ownership, but they serve different purposes. A certificate of title is a grant issued as a result of a subdivision without a change of land use. It represents a legal document indicating the ownership of a specific piece of land.

On the other hand, a title deed is a signed agreement that serves as proof of ownership of land and the legal rights associated with it. There are different types of title deeds in Kenya, depending on the land tenure system and the Land Acts in place. For example, there are certificates of lease for leasehold land and absolute title deeds for freehold land.

What Is The Difference Between A Certificate Of Title And A Certificate Of Lease In Kenya?

The main difference between a certificate of title and a certificate of lease in Kenya is the type of land tenure they represent. A certificate of title is issued for freehold land, which means the landowner has maximum rights to the land without any time period or restrictions.

On the other hand, a certificate of lease is issued for leasehold land, where the ownership of the land is subjected to a definite period, with the maximum being 99 years. The lessee holds rights to the land for a specific period subject to conditions imposed on land rights by the lessor.

Unless the lease is renewed when the period lapses, the land reverts back to the grantor of the lease, and there is a cost associated with the renewal. With a certificate of title, the owner owns the property and their family succeeds that piece of land owning the property forever, and there is no need for reapplication of ownership.

While in possession of a certificate of lease, the owner only owns the property for a specific period of time, and there are fees in either rent or dues.

Here are the key differences between a certificate of title and a certificate of lease in Kenya:

Certificate of Title

  • Issued for freehold land ownership
  • Gives unlimited ownership rights
  • No time restrictions on ownership

Certificate of Lease

  • Issued for leasehold land
  • Ownership limited to lease period, usually 99 years
  • Ownership reverts back to lessor after lease expires
  • Requires lease renewal and fees to continue ownership
  • Lessee must follow terms and conditions set by lessor

In summary, a certificate of title provides unlimited ownership rights whereas a certificate of lease provides time-limited ownership rights subject to lessor conditions. The key distinction is freehold versus leasehold land tenure.

What Is The Process For Obtaining A Certificate Of Lease In Kenya?

Here is the process for obtaining a certificate of lease in Kenya:

  • Submit a land consent application to the Ministry of Lands or local lands office
  • Obtain a land consent certificate, which includes recourse information, in “certification sheet” format
  • Obtain a land rent clearance certificate
  • Pay the necessary fees
  • Obtain consent to transfer from the National Land Commission
  • Renew the lease and pay the necessary fees to continue ownership
  • Follow the terms and conditions set by the lessor

Here are the key steps to obtain a certificate of lease in Kenya:

Land Search

  • Conduct a search at Ministry of Lands to confirm land is available for lease
  • Obtain necessary documents like survey maps and valuation report

Application

  • Submit application for consent to lease to National Land Commission
  • Pay application fees of KES 1,000
  • Takes 1-2 days waiting time plus 15-30 mins attention at counter

Approval

  • National Land Commission reviews and approves application
  • Takes up to 2 weeks waiting time
  • Receive lease preparation instructions if approved

Lease Preparation

  • Hire lawyer to prepare lease agreement as instructed
  • Pay stamp duty based on valuation, around 4% of land value
  • Takes 1-2 weeks’ preparation time

Registration

  • Submit lease agreement to Ministry of Lands for registration
  • Pay registration fees of KES 500-1,000
  • Receive Certificate of Lease after 1-2 weeks

In summary, the process for obtaining a certificate of lease involves obtaining a land consent certificate, a land rent clearance certificate, and consent to transfer from the National Land Commission. The lessee must also renew the lease and follow the terms and conditions set by the lessor.

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