Procedure with regards to Transfer of a Charge

In summary, the procedure to be followed in the transfer of an instrument creating a charge entails:

  1. Conduct of an official search over the particulars of the title of the property to be charged so as to ascertain ownership and the nature of any other encumbrances that may exist over the property.
  2. Drawing up and execution of a sale agreement for the property.
  3. Drawing up and execution of the Instrument of Transfer. The Transfer is executed by both the Transferor (the person who owns the property and is selling it) and the Transferee (the person purchasing the property)
  4. Assessment of the instrument of Transfer to stamp duty and payment of assessed stamp duty. Assessment of a Transfer to determine the stamp duty payable to the Kenya Revenue Authority on the Transfer is done by a Government Land Valuer at the Lands Registry. Stamp duty payable on the transfer of real property is computed at either 4% for land situated within a municipality or 2% for property located outside a municipality. Both parties to the transaction require a PIN.
  5. Lodging of the Instrument of Transfer at the Lands Registry for stamping.
  6. Registration of the Transfer upon payment of a standard fee. When lodging the Instrument of Transfer for registration the same should be accompanied by the original documents of Title to the property.

Under the Registration of Lands Act the old Title Deed of the property is delivered up and cancelled and a new Title in the name of the new proprietor issued. In the case of the Registration of Titles Act and the Government Lands Act the existing document of title is duly endorsed with a memorandum of the transfer by the Registrar of Lands clearly indicating that the property has been transferred to the Transferee.

Posted by: cmpd-admin

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