There’s often confusion between a Title Deed, Share Certificate and an Allotment Letter. We wish to differentiate these ownership documents for our investors.
- Title Deed: The Title Deed is the crown jewel of property documentation. It’s a legal deed or document that proves evidence of right of ownership of a piece of land or property. It includes detailed information about the property, including its boundaries, size, and the owner’s particulars.
Types of Title Deeds In Kenya
Title Deeds in Kenya are issued by Ministry of Lands, Housing and Urban Development at the Ministry’ regional registries offices. There are four types of tittle deeds in Kenya
- Certificate of Lease: Certificate of lease is the ownership document for leasehold
property This Title deed is also known as Leasehold Titles. Leasehold land is
one where ownership of the land is subjected to a definite period (maximum
being 99 years). The lessee (occupant) holds rights to land for a specific
period subject to conditions imposed on land rights by the lessor (landowner). - Absolute title deed: This type of Title deed is also known as Freehold Title. A
Freehold title is where the landowner has the maximum rights to the land
without any time period or any other restrictions. Once you have this type of
Title Deed, the land is yours and has no conditions on ownership. - Sectional Tittle deed : A sectional Title deed is issued to prove ownership for a
unit within a building for example when you buy a house in an apartment or a
flat. - Certificate of tittle: A title issued due to subdivision without change of user, it
is under Registered Lands Act Cap 21.
- Share Certificate: Share Certificates are typically associated with ownership in companies and co-operatives. They represent your ownership stake in these entities, which may own or manage the property. Share Certificates are issued to shareholders and signify their rights and interests in the company or cooperative.
- Allotment Letter: An Allotment Letter is a document issued by a property developer to a buyer, confirming the allocation of a specific property within a development. It’s an initial document that outlines the terms and conditions of the property purchase, and it serves as proof of intent to transfer ownership.
Understanding these documents is vital when buying or selling property in Kenya. The Title Deed is the ultimate proof of ownership, while Share Certificates and Allotment Letters are associated with shares and property allocations within organizations.
Always make sure to complete the necessary processes to secure your Title Deed and protect your property rights.