@dave, It is not lawful for the registrar to demand that you go through the board coz essentially a caution citing purchaser's interest should be place as soon as you present a copy of the agreement and a copy of the cheque to prove that you performed your obligation as per the agreement.

However, just comply and go the board as requested by the registrar and present your case there. In the event they don't assist you, then do the following:
1. Prepare the cheque for the balance and let the advocate who was did the agreement write to the vendor advising them that you are ready to finalize the transaction and attach a copy of the cheque plus the transfer documents advising the lady to sign them in say 14 days (I presume that the agreements says time is of the essence even if it does not mention the completion period. If not, it says that the sale is subject to LSK conditions). If she does not sign within the 14 days, then give her a completion notice of 14 days. If again she fails to sign, then
2. Approach the court and place an injunction and request for an order of specific performance. Remember these are courts of evidence, so u'll need to prove that you are ready to complete the transaction, so the cheque for the balance is important. The court will most likely rule in your favour. In some cases the Registrar can actually sign the transfer forms and allow for the transfer to proceed whereupon the cash for the balance is deposited with the court for the Vendor to collect. Get advice from a good lawyer if you decide to go the court way. Hope this helps.

Of Certificates and Ballots

Did u know that the Kenyan Government only recognizes title deeds and allotment letters as bona-fide documents to show proof of ownership of land? And by the way, from our previous lessons, the allotment letter is just an offer and the expectation after receiving the offer is to accept it by way of paying the charges therein.
So, when you purchase a plot from a land buying company and all you receive is a certificate from the said company, then please take note that the government does not recognize that you own the plot. In fact the agreement may only say that you own a plot excised from the mother title so and so.

The origin of these certificates and ballots was by land buying companies whereupon the company would buy a big chunk of land, or would be allotted by the government. The shareholders of the company would then buy shares and you’d find a share would mean one or several parcels of land. Ideally, the shareholders would ballot for the available pieces, hence the ballot card and numbers. Thereafter, they’d pay some charges to be shown the parcel (s) and process the titles via the buying / ranching company. We have heard of Embakasi, Githunguri, Kihiu Mwiri, Kiganjo, Dandora farmers, Mboi Kamiti, Nyakinyua etc, all ranching companies that would apply this concept. Till today, you’ll find members who never paid the requisite charges to acquire title deeds still holding on to original documents (very old receipts, ballots & certificates) as proof of ownership. I once saw a mzee who had framed a certificate and held it so dear it was kinda comical. But then, they are / were original owners and any sale would mean a transfer is executed at the company offices.

Fast forward to today. Some guys will buy huge chunks of land, subdivide physically and sell using certificates. My biggest question has always been why a serious investor in land would behave like that. But purchasers are also to blame; why do you buy a plot with a certificate worst of all from an individual? This is plainly lazy on the part of the guy selling.

In some cases, the concept is acceptable like the Mhasibu case where they sell a concept and members buy into the concept. When cash enough to commit to the deal has been received, the deposit is paid and the balance is paid upon completion by those interested. Title processing comes much later after members have fully paid and subdivision is completed. Notice the advantages of such a concept in the fact that members fully enjoy economies of scale coz the bigger the land, the cheaper it becomes. Again, when well negotiated, the members acquire the plots at a cost which is way below the market prices.

For the former case where an individual just buys a huge chunk and sell plots with certificates, take note of the risks therein:
1. For the individual / company selling, if they decide to use the land as collateral, who would stop them? I have heard cases where dubious fellows use the land as collateral only for the purchasers to be left in a fix when the fellow defaults. You’ll end up lining up with a bank somewhere where the bank claims lenders interest and the purchasers claim purchasers’ interest.
2. For the purchaser, you can never use the land as collateral coz no bank will accept those certificates. The ownership of that property only reaches the purchaser upon transfer of the title in their name.

I have also witnessed interesting cases especially in Ruiru (Murera Area) where guys subdivide land into tiny plots measuring 60ft by 40ft and sell using certificates. What purchasers should know is that you can never get a title with that size of a plot around that area. In fact the smallest piece you should buy must be a minimum 40ft by 80ft or equivalent area. My advice is that we avoid these certificates at all cost. However, whenever purchasing any land in those schemes, then it is wise to demand for those original documents as part of due diligence.

Next we’ll look at joint property ownership and the legal implications.

Marty, a real life example to the issue of encumbrances?
The listed investment
company cancelled the deal to acquire the property after the parties to the deal refused to disclose that a court order had been obtained in a separate court case involving Mr Muigai,
Barclays Bank and real estate developer Suraya Group, barring any transaction on
the property.
http://www.businessdaily...8/-/qkyie5/-/index.html

Joint Ownership

Joint ownership of property will come in two forms:
1. Joint proprietors
2. Proprietors in Common

When two or more people purchase land, they can be registered on the Title as either of the above.

Where two or more parties register as Joint Proprietors each registered owner does not have a specific share of the property - all owners have an undefined share in the whole of the land. The right of 'survivorship' applies when a joint proprietor dies, as the ownership automatically vests in the surviving joint proprietor/s. In other words, the deceased proprietor's interest simply evaporates by operation of law, and cannot be inherited by his heirs (which means you avoids going through probate / succession). Under this type of ownership, the last owner living takes all.

In the former registration acts which have since been repealed, it was possible for non-spouses to jointly own property as joint proprietors, not so in the new Land registration Act 2012. In fact any property which was jointly owned by people who are not spouses in the old law automatically transits into proprietors in common mode under the new law. How they’ll split the percentages am not sure; probably they’ll assume equal ownership. The new law only allows spouses as joint proprietors but others will have to be proprietors in common.

As for proprietors in common each registered owner has a separately defined share of the property which can be one undivided moiety or one third, or one quarter, depending on the number of registered proprietors as to the percentage holding. In this instance, when a proprietor in common dies, ‘survivorship' does not apply, and the deceased's share is transferred according to the terms of the will. However in the case of those who die intestate (without a will), then the share is transferred to the administrator of the estate. Simply put, when a proprietor in common dies, that owner's interest in the property will pass by way of inheritance to that owner's heirs, either by will, or by intestate succession.

Lessons to learn
1. If you wish to protect your spouse from being harassed by your not so good relatives after you are gone to plant cassavas for those you leave behind, then ensure that the properties you wish her/him to have are registered in both your names. That way, the surviving spouse automatically takes over the ownership without being subjected to succession. The registrar actually will delete the name of the deceased from the title upon confirmation/proof of transition by way of registering the death certificate.
2. In the case where several people contribute un-equal amount towards the acquisition of a property then the % of ownership need to be clearly stipulated in the registration documents.

By the way, did u know that any transfer even in the case of a gift or inheritance attracts stamp duty? Next we shall look at registration of minors (below 18) and registration of properties in trust. I have at one point met someone who never really trusted their spouse and decided to register the property in the name of a minor.

@Marty thanx. U r really helping me so much albeit sometimes u freak me to death nduatizy@yahoo.com.
Also shed mo light on group ownership of land. Mayb the mistakes to avoid n diligence one shuld kip after acquiring one with a group of about ten.

@Marty
When will you circulate Financial literacy summary 3?

You registered the land in whose name?

Good debt vs bad debt

When you see the word debt, what comes into your mind? Is it the HELB loan, the soft loan you took from a friend, the goods unpaid for in the shop in your estate, mortgage or that credit card debt that keep following you?
We have two forms of debt that are fundamentally different and can never be painted with the same brush. Read on and you might discover how debt can actually be good for you, when managed properly.

Bad Debt – This is the kind of debt that sounds very familiar with most people. A typical life starts with some student loan (HELB). Soon after you get employed, you apply for some credit cards (very enticing). Thereafter you get a car loan to keep up with the Jones (still very appealing). Later on you get to the mortgage (not so bad at least). Somewhere along the line serious expenditures weigh on you and accumulate very quickly. Before you know it, you attempt to get out of debt using any possible means including piling more debt, or loosely put borrowing to repay other debts. Sounds crazy but kinda familiar. Rat race I guess. But we at least covered a topic on how to get out of this race.

Why is this bad debt? All of the above with an exception of the mortgage actually work against you; at least the mortgage goes towards building your future. Let’s say that bad debt is the kind of debt that results from overspending on things you really don’t need – things that can never provide you with any sort of return. Spend too much on these frivolous items and you’ve got quite a problem on your hands. A very dangerous problem that can kill you; relax you ain’t dead at least.

By the way, some relatives and some friends form a big part of the bad debt we write off at a personal level. They are in the habit of acquiring soft loans from us that they don’t plan to repay; or they fail to repay. I use a strategy to deal with that by blacklisting the bad debtors. So I give out the cash that I am comfortable losing and if the likely event of losing happens, then I blacklist the culprit. In the unlikely event that I get paid the soft loan, I can comfortably give more to the fellow in future. Those who are blacklisted will probably not bother you in future, but if they are hard headed and decided to come back to ask for more, I remind them of what they owe me with specific details including the date they borrowed and the amount. Some are shocked and take to their heels.

Good Debt – This is a totally different type of debt that we commonly refer to as leverage. In a layman’s definition we can loosely define it as use of borrowed capital for (an investment), expecting the profits made to be greater than the interest payable. Essentially, you are going into debt in order to make more money for yourself in the future. In the right hands and with the right techniques, debt is a very powerful tool that can help you make more money, not less. When handled incorrectly, debt is nothing more than an albatross (a source of frustration an encumbrance) that will bog you down financially. Good debt is something that will free you from financial worries.

We shall expound on the leveraging in the next post.

The chama is registered as a welfare group or a limited company??

Noted and thanks