Before purchasing property, there are several key items that an investor ought to look out for. These can be grouped into four categories; Financial, Legal, Environmental and Physical.
The following is a checklist that can guide you to get all the necessary information before investing in that property. The list is however not exhaustive.
- Reputation of the seller/selling company
- Availability of ownership documents e.g title deed, allotment letter, share certificate
- Authenticity of ownership documents especially title, allotment letters, and agreements
- Official search certificate from ministry of lands
- Cadastral maps RIM maps/mutation maps/Survey plans showing the property
- Copy of green card
- Consent to transfer
- Matrimonial status of the property
- Encumbrances on the property; charge
- Servitudes
- Easements
- Caution
- Caveats
- Ground rent; payable and outstanding
- Land rates; payable and outstanding
- Beacons and distinct boundaries
- Evidence of pollution and/or land contamination either on the subject property or adjoining properties
- Approved land use by local authority/ zoning
- Planning regulations and statutory consideration
- Availability of water, electricity and sewer
- Neighborhood historical background about the property
- Title acreage vs ground acreage
- Encroachment
- Gazetted forest land
- Road reserve
- Wetland or prone to waterlogging
- Animal migration corridor
- Ndung’u report or list of revoked titles by National Land Commission
- Public land
- Soil type
- Outstanding legal cases
- Physical property inspection
- Structural and maintenance condition of the buildings thereon
- Building plans of the existing buildings
- Occupational certificate
- Infrastructural amenities such as roads, hospitals
- Social, economic, educational and religious facilities
- Market value of the property
- Market rent of the property
- Insurance value of the property
Property valuers are professionals who give comprehensive reports on all the above items. Get a valuer to do a due diligence report on your behalf before making that final decision to purchase your property. Save time and Save Money ultimately!
AVENUE VALUERS LIMITED Publications 2023