All You Need to Know About; Letter of Allotment, Title Deed and Share Certificate Before Buying Land In Kenya
On September 22, 2023, the Supreme Court pronounced itself on the difference between an allotment letter and a title deed, this was during the delivery of a verdict in the Torino Enterprises Limited Vs Attorney General, Petition Number 5 (E006) of 2022.
In its ruling, the court noted that an allotment letter was not a valid title deed. The court further stated that an allottee cannot transfer a valid title to property unless they acquire a Title Deed through registration
Many people have mistakenly relied on letters of allotment as proof of ownership when purchasing a property because they all bear almost similar details to those in the title deed, and due to this, it’s important to understand the distinction.
Allotment Letter
It is issued by the National Lands Commission which presides over land allocation.
An allotment letter is a document issued by a property owner 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.
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Additionally, it includes the name of the person or entity being allotted the land, as well as any terms and conditions, including restrictions or specific use requirements.
Title Deed
It’s a legal document that proves your ownership of a piece of land or property.
It includes detailed information about the property, including its boundaries, size, and the owner’s particulars.
Owning a title deed means you have complete ownership of the land and the title deed can be provided in court to prove ownership.
It comes after the issuance of the letter of allotment.
Share Certificate
Share certificates are typically associated with ownership in companies and cooperatives.
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.
Always make sure you follow the necessary steps to secure your title deed and protect your property.
All You Need to Know About; Letter of Allotment, Title Deed and Share Certificate Before Buying Land In Kenya
