Friday, April 12, 2024

Conveyancing- Consents

Land Control Board Consent

1.0 Introduction 

  • The purpose of the Land Comtrol Act (LCA) is to control transactions in agricultural land.
  • What is agricultural land- S2 LCA:
    • Land that is not within:
  • A municipality;
  • An area which was a township under the Township Ordinance (now repealed);
  • An area which was a trading centre under the Trading Centres Ordinance (now repealed); or
  • A market.
  • Land in the Nairobi area or in any municipality, township or urban centre that is declared by the Minister by notice in the Gazette to be agricultural land for the purposes of the Act.
Proviso
  • under the proviso to S2, the definition of agricultural land excludes land which, by reason of any condition or covenant in the title thereto or any limitation imposed by law, is subject to the restriction that it may not be used for agriculture or to the requirement that it shall be used for a non-agricultural purpose.

2.0 Transactions requiring LCB Consent

  • S6(1) lists transactions which require LCB Consent:
    • Sale, transfer, lease, mortgage, exchange, partition or other disposal of or dealing in any agricultural land situated within a land control area;
    • Division or agricultural land into two or more parcels held under separate titles;
    • Issue, sale, transfer, mortgage or any disposal of or dealings with any share in a private company or co-operative society which owns agricultural land
  • S6(2)- the declaration of a trust of agricultural land situated within a land control area requires LCB consent.
3.0 Failure to obtain LCB Consent

Transaction rendered null and void:

Mbuthia Charagu v. Kiarie Kaguru


4.0 Transactions in which LCB Consent is NOT required

  • S6(3) provides that LCB Consent is not required in respect of the following:
    • Transmissions of agricultural land (whether by testate or intestate) unless that transmission would result in the division of the land into two or more parcels to be held under separate titles;
    • Transactions to which the Government is a party or transactions which involve trusts of land.
Obtaining LCB Consent

Granting and refusing consent

  • S9 LCA lists situation in which LCB consent will be granted or refused. From these situations the following objects of the LCA can be identified:
    • To ensure that agricultural land is acquired by persons who can farm the land properly.
    • To ensure that agricultural land is equitably distributed among persons who can farm it.
    • To ensure that land is not acquired for speculative purposes.
  • Note- S9 (1) (c)- where the person intending to acquire agricultural land is a non-citizen, consent SHALL NOT be given.

Presidential Exemptions

  • Under S24 the President has power to exempt any transaction or person from the provisions of the LCA. Such exemption is granted by way of notice on the gazette.


Consent of Commissioner of Lands

  • All leases granted by the Government are subject to such conditions as to the development and use. For this reason there is a prohibition against transferring, letting, sub-letting, mortgaging or charging leased property without the consent of the commissioner of lands on behalf of the government.


Consent of the Chief Engineer Kenya Railways Corporation

  • Property adjacent to a railway line requires the consent of the Chief Engineer. This applies to dealing in leases granted by the government as well as agricultural land.

Consent of mortgagee/chargee

  • Chargor or mortgagor must obtain the consent of the chargee or mortgagee before he can transfer or lease the mortgaged property that is the security of the chargee or mortgagee.

Consent of landlord and head lessor

  • A tenant must always obtain the consent of the landlord if he wishes to assign his interest or sublet the property.

Clearances

  • Provided for under s86 RLA which provides that the registrar will not accept any document of transfer or lease unless it is availed to the registrar.
  • You will receive a registration certificate or statement of clearance from the local council confirming that all the charges from the last 12 years have been paid.


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