Buying property is a significant milestone, but many buyers make the mistake of budgeting only for the purchase price. In reality, there are several legal costs that come with closing a real estate deal, especially in Kenya. Failing to prepare for these expenses can delay the process or even jeopardize the transaction.
To help you plan effectively, here are five legal costs you should budget for beyond the sale price.
In Kenya, it is highly recommended to hire a conveyancing lawyer when buying property. Your lawyer’s role is to:
Cost:
Lawyer’s fees are guided by the Advocates Remuneration Order and are usually charged on a sliding scale, ranging between 1% – 2% of the property’s value, subject to a minimum fee.
Stamp duty is a government tax payable when transferring property ownership. It is calculated based on the property’s market value or the price stated in the sale agreement, whichever is higher.
Rates in Kenya:
Why it matters:
Without paying stamp duty, the property cannot be registered in your name.
Before committing to a purchase, you must perform a land search at the relevant land registry to confirm:
Costs include:
The government may require a valuation to determine the true market value of the property for stamp duty assessment. Additionally, if you’re financing the purchase through a bank, the lender will also commission their own valuation.
Cost:
Valuation fees are set by the Valuers Act and typically range from 0.25% – 0.5% of the property value, with a minimum fee.
These are smaller but necessary costs that often get overlooked, including:
When budgeting for property in Kenya, the sale price is only part of the story. Legal costs such as advocate fees, stamp duty, title searches, valuations, and administrative charges can add 5% – 10% to the purchase price.
By factoring these expenses into your budget from the start, you’ll avoid last-minute surprises and ensure a smoother, faster, and legally compliant transfer of ownership.
