This guide provides a comprehensive overview of the process of purchasing property in Diani, covering legal requirements, costs, and practical tips for buyers.
Title Deeds and Verification
Ensure the property has a valid title deed. Conduct a title search at the Ministry of Lands (Kwale Lands Office)to verify ownership and check for any encumbrances or disputes associated with the property.
Land Control Board Consent
For agricultural land, including many beach front properties, the Land Control Board must grant consent for the sale. This ensures the transaction complies with local land use policies. A sale without LCB consent is null and void.
Survey and Mapping
Confirm the property’s boundaries through a survey by a licensed surveyor. This step is crucial to avoid boundary disputes and to ensure the land size matches the title deed. Ensure all beacons on the land are visible with title numbers/ plot numbers tallying the copy of title/ mutation where available.
Costs Involved
Purchase Price: The primary cost is the agreed purchase price of the property. Prices in Diani vary significantly depending on location, size, and property type.
Legal Fees: Engaging a qualified lawyer is essential. Legal fees typically range from 1% to 2% of the property’s purchase price. Lawyers handle due diligence, contract drafting, and ensure the transaction adheres to legal requirements. A conveyancing lawyer is vital to sale of property.
Stamp Duty: This tax is calculated as a percentage of the property’s market value—4% for urban areas and 2% for rural areas. Diani Beach is generally classified as urban.
Registration Fees: These are nominal fees paid to the Ministry of Lands for registering the property in the buyer’s name. The cost varies with counties.
Steps in the Buying Process
Research and Identify Property: Start by researching properties in Diani Beach. Visiting Diani and viewing properties in person is highly recommended.
Due Diligence: After agreeing on a price, engage a lawyer to conduct due diligence. This includes verifying the title deed, checking for encumbrances, and ensuring compliance with zoning, land use regulations and all land rate are up to date.
Sales Agreement: Upon successful due diligence, the lawyer drafts a sales agreement outlining the terms and conditions of the sale. Consult a conveyancing lawyer should have difficulty in understanding the agreement. Both parties sign this agreement.
Payment and Transfer: Pay the agreed deposit on purchase price and upon receipt of original title copy accompanied by actioned transfer forms pay the final amount. Upon final payment, the seller transfers the title to the buyer. The lawyer facilitates the payment of stamp duty and registration of the title deed in the buyer’s name.
Tips for Buyers
Engage Local Experts: Work with reputable companies like Pazurina holiday homes who are familiar with Diani Beach’s property market and legal landscape.
Consider Infrastructure and Amenities: Evaluate the availability of essential services such as water, electricity, and road access. Proximity to amenities like shops, schools, and hospitals can also impact property value and liveability.
Plan for Additional Costs: Budget for additional costs such as legal fees, stamp duty, and maintenance. These can significantly add to the overall expenditure.
Future Developments: Investigate any planned infrastructure projects or developments in the area that could affect property values, such as new roads, hotels, or commercial centres.
Buying property in Diani Beach can be a rewarding investment, offering both a serene lifestyle and potential financial returns.
Pazurina holiday homes offers a diverse range of residential and commercial plots to suit every investor’s preference and budget.
We have premium plots at 3.5m and an affordable option at only 650k.
Contact our friendly sales team today and learn more about our ready to build plots!
Call us at 0712 110 110 or visit our website ww.pazurina.co.ke.
