A businessman was Friday arraigned at a Milimani court over alleged Sh70 million land fraud.
Nicholas Karunjigi Munyua, a former governor aspirant for Nakuru, was presented before Milimani Senior Principal Magistrate Dolphina Alego and denied all the charges levelled against him.
In one of the counts, it was stated that on different dates between October 30, 2022, and March 5, 2023, at an unknown place within the country jointly with others not before the court allegedly intended to defraud Edward Ndumari Mungatana and Martha Francesca Mugure Ndumari of their parcel of land measuring approximately 0.3091 hectares valued at Sh70 million.
The charge sheet added that he allegedly committed the offence by falsely pretending that he had purchased the said land, a fact they knew to be false.
In another count, it was stated that on diverse dates between February 08, 2023, and October 20, 2023, in Nairobi with intent to defraud obtained Sh29 800 000 from John Kamau Ngugi and Florence Nyanjihia Kabata by falsely pretending that he was in a position to sell them the land situated in Runda, Nairobi a fact they knew to be false.
Alego released him on a bond of Sh5 million or alternatively pay a cash bail of Sh1.5 million.
He had been out on a police cash bail of Sh200,000.
The case will be mentioned on November 7, 2024.
Many Kenyans have complained of allegedly being conned when buying land, or getting a raw deal.
The first step to purchasing land is conducting a search and inspection of the title.
Once you identify the land, it is recommended that you visit the lands registry to conduct a search of the parcel.
You will need a copy of the land title deed from the seller to facilitate the search.
Once the buyer is satisfied with the search results as presented by their advocates from the lands registry and the company registry, there will be the preparation of offers and price negotiation.
The advocate should prepare a letter of offer or intent showing the details of the seller and purchaser, the description of the property on offer, and the proposed purchase price and modes of payment.
The third step is the sale agreement and deposit payment. When the buyer and the seller agree, there is a need to ensure that the offer has both the terms and conditions included. It is usually drafted by the seller’s advocate and presented to the buyer’s advocate for approval.
Upon the execution of the sales agreement, the agreed deposit is paid by the purchaser through their advocate to the seller’s advocate’s account.
After the land payment, the buyer is supposed to pay land rates to the city or municipal council involved before completing the transaction.
The fifth step is where the seller’s advocate prepares transfer documents that will be executed by both the buyer and the seller.
The transfer documents are only executed after consent to transfer has been issued by the commissioner of lands.
The sixth step is valuation. For purposes of stamp duty, an application for valuation is made to the government valuer. The official makes a site visit to enable her to prepare the requisite valuation report. Stamp duty is important as it is used in registering the property.
The payable duty is determined by a government valuer and the valuation is done to determine the true value of the land on the open market as at the date of transfer.
The intention is to gauge the value declared in the instruments presented for registration for purposes of ascertaining whether the value declared in the instruments will be raised or not.
The buyer is then supposed to pay the stamp duty, a tax levied on all lands. Once the registration process is complete, the ownership of the land shall have legally changed hands.
Finally, upon receipt of the complete documents from the seller, the buyer is obligated, in exchange for the documents, to pay to the seller the entire balance against the land. The payment is done through the advocate to finalise the registration of the documents after paying the requisite stamp duty.