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RevisedWeek 9-10_Transfer & Registration_ATP 107_07.05.2024
RevisedWeek 9-10_Transfer & Registration_ATP 107_07.05.2024
What is a transfer?
Section 2 of the Land Act defines ‘transfer’ as the passing of land, lease or a charge
from one party to another by an act of the parties and not by operation of the law. It
also includes the instrument that effects the passing.
Section 2 of the LRA defines "transfer" to mean the passing of an estate or interest in
land or lease under the Act, whether for valuable consideration or otherwise
Since the transfer is by the act of the parties and not by operation of law, the transfer
is termed as voluntary transfer, which is the subject of discussion in the this session.
What is a transmission?
Section 2 of the Land Act defines “transmission” as the passing of land, lease or charge
from one person to another by operation of law on death or insolvency or otherwise.
Section 2 of the LRA also defines "transmission" as the passing of land, a lease or a
charge from one person to another by operation of law on death, insolvency or
otherwise.
S 37(2) of the LRA deals with the transfer of all the 3 types of interests: transfer of land,
transfer of leases and transfer of charges.
Freedom To Transfer?
Every person has the right to transfer their land subject to such limitations as may be
provided under the law or under the various agreements entered into relating to the
land.
Article 40(1): Subject to Art. 65, every person has the right to acquire an own property,
of any description and in any part of Kenya
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Article 65-You can only transfer freehold property or leaseholds of over 99 years to
Kenyan citizens any such transfers to non-citizens are deemed to be leasehold for 99
years.
What of Consideration?
S43 (2) LA, S27 (1) LRA- one can transfer land, lease or charge to any person including
himself with or without consideration
There is an exception to this rule where consideration is not valuable i.e. no money is
paid. In some of such cases the transfer instrument indicates that the consideration is
“love and affection”. How does this fit in with the phrase ‘without consideration’
above?
S27 (2) LRA- A proprietor who has acquired land or an interest in land without
valuable consideration holds it subject to any unregistered rights or interests subject
to which the transferor held it; and the provisions of the Insolvency, Act, 2015, so far
as they are applicable in the circumstances (meant to curtail fraudulent transfers to
defeat creditors).
When registered, such a transfer has the same effect as a transfer for valuable
consideration.
Gifts
The gift must be accepted by donee during the lifetime of donor. It must be effected
by a registered instrument and the donor must comply with all the statutory
requirements relating to the transfer e.g. LCB consent where necessary etc.
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See Registered Trustees of the Anglican Church, Mbeere Diocese Vs. Rev. David
Waweru (2007) eKLR- The Respondent (Rev. Waweru), had donated his land to the
church. He obtained LCB consent and executed the transfer but it was not registered
due to a court matter over the property. He later sought to reclaim it from the church
through court action after he resigned from the church service. The superior court held
in his favour. The Court of Appeal held in favour of the Church using the above
principle that where the donor has fulfilled all legal requirements of a transferor, the
property belongs to the donee.
GLA<A
In the form of a Deed. Instead of being signed it is signed sealed and delivered.
Neither GLA nor ITPA prescribe statutory forms for transfer. The form was governed
by English patterns in accordance with the Real Property Act 1845 and Conveyancing
Act of 1881- these are statutes of General Application in Kenya.
The transfer is effected by the completed deed itself (when it is signed sealed and
delivered). A seal must be placed (paper disc next to the signature). It should also be
delivered. There must be intention to be bound.
There was use of statutory forms prescribed by RLA and RTA or instruments in
conformity with the Acts and approved by the Registrar.
S20 RTA- all dealings in land subject to the Act must be in accordance with the Act.
Execute transfer Form F in the first schedule (see S34). It was known as a Transfer.
There was a requirement for the attestation of signatures under S58 but no sealing
requirement.
S38 (1) RLA- dealings in land subject to the Act must be in accordance with the Act.
S108- use of prescribed form issued by the Registrar. Requirement of verification of
execution under S109 was mandatory. No requirement of a seal.
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Schedule 3 of RLA contained the forms of Transfer, like the Transfer of Land (RL 1),
Transfer of Lease (RL2), etc. If an Advocate chose to use a form other than those
prescribed, he must have had them approved by the Chief Land Registrar
As per the Law of Contract Act S3 (3)- a contract for the sale of land must be signed
by all the parties thereto; and the signature of each party signing has been attested by
a witness who is present when the contract was signed by such party.
NB: a transfer does not operate as a transfer of land until the transferee is actually
registered in the registry. Registration doesn’t merely record the instrument but
passes rights of ownership to the purchaser.
Statutory forms in RLA and RTA were varied by LN 146-153 of 2005 to include further
details of PIN no, ID, coloured passport photographs etc.
Responsibility for drafting rests with the purchaser’s advocates and it is approved by
the vendor’s advocates.
RLA prescribed form could only be varied by the Chief Land Registrar’s written
approval. The forms for RTA variations did not require Registrar’s prior approval,
though the same was liable for rejection by the registrar for not capturing the relevant
particulars. It was ordinarily prepared as a deed.
POST-2012 REGIME
The post-2012 legal regime introduces compulsory use of prescribed forms for
dispositions in land.
S43 (2) LA- transfer to be effected by an instrument in the prescribed form.
S36 (1) LRA dealings in land only in accordance with the Act
S43 (3) LA- completion of transfer process only after registration. S43 (2) LRA-
Transfer effective only upon registration
Execution under section 44 of the LRA and verification under section of the LRA as
discussed earlier.
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Other requirements under S44 (5) LRA-a copy of an identity card or passport; and a
copy of a Personal Identification Number certificate; passport-size photographs;
where applicable, a marriage certificate; or a copy of the certificate of incorporation,
in the case of a corporate entity; or such other identification documents as the Cabinet
Secretary may prescribe.
Transfer of Lease
S45 LA- in such transfers, there is an implied warranty on the part of the transferor
that the rent, agreements and conditions on the part of the lessee to be paid, performed
and observed have been so paid, performed and observed up to the date of the transfer
and that rent, agreements and conditions in lease have been met by transferor as at
the transfer date and that these obligations shall be met by transferee from the said
date.
S 71 LA has similar provision. It provides thus: the rule of the common law that a
transferor or assignor of a lease remains liable on the personal covenant to the lessor
for payment of rent and for all breaches of covenants, notwithstanding that the
transferor or assignor is no longer in possession or occupation of the leased land, shall
cease to apply; and the effect of a transfer of a lease is, as from that date of such
transfer, to discharge absolutely transferor from any obligation to pay rent or to
observe any covenants in respect of the land as from the date of the transfer.
This means that the transferee/assignee takes over the rights and liabilities in and that
transferor/assignor is no longer liable to the lessor that they entered into the initial
lease. This is the codification, from Equity) of the privity of estate by the LA, same
position under RLA (repealed). Privity of estate exists between Landlord and Tenant's
Assignee; or Tenant and Landlord’s Assignee. On the other hand, ITPA (repealed)
relied on the common law position, of privity of contract (as understood, the lease
contract binding on the parties, so that an assignment of the lease does not
assign/transfer the obligations/liabilities.
S72-transferee becomes the lessee and is required to acknowledge the lessor as such
and to take possession of the land or building that is the subject of the lease if the lease
agreement expressly or impliedly provides so.
S 54 LRA- the lessee shall not transfer or part with possession of any of the leased land
without the written consent of the lessor, verified in accordance with the LRA has been
produced to the Registrar. This addresses the issue that arises from the privity of estate
position on what happens with the obligations of the lessee who assigns/transfers the
lease. Prior to issuance of consent, the Lessor to ensure that the lessee has complied
with the lease obligations.
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Transfer of Charge
S86 (1) LA- Chargor (or anyone with an interest in land that is charged, any surety for
the payment of an amount secured by a charge, any creditor of the Chargor who has
obtained a decree for sale) may request the chargee to transfer the charge to a person
named in the request.
Regarding voluntary transfers, the respective transfer instruments under the various
regimes, for an estate if fee simple/freehold/absolute; or leasehold, were/are as
follows:
RTA - Transfer as per form F (which described whether the interests was freehold or
leasehold).
LRA-Transfer of Interest in Land LRA 33 as the main one, and other depending on
the transferor or type of interest being transfer (this is explored in the class
tasks)
PARTS OF A TRANSFER/CONVEYANCE
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4. Testimonium
5. Execution
6. Attestation Clause
1. Commencement
a) Nature - It states the nature of the document. Each document describes Itself,
e.g. "THIS INDENTURE OF CONVEYANCE” , “THIS TRANSFER” etc.
b) Date - It also contains the date of the document - i.e. the date of execution.
Where the date is omitted or a false date is inserted, this does not invalidate the
document. Evidence may be adduced to explain the correct date.
c) Parties - These are the signatories to a document. They include, inter alia,
natural persons and companies as well as anybody that has legal personality.
Names should be stated in full. Where a name differs from that given in an
earlier document, it is advisable to draw attention to the discrepancy. This may
be done by including a statement when reciting the earlier document to the
effect that the person was referred to using a different name. At other times,
especially, in a transfer of land, it may be necessary for the person with the
different name to swear an affidavit stating that he is the same person referred
to in the previous document.
The various parties who join in the document are expressed to be of separate
parts. E.g. THIS TRANSFER made the ….. Day of …….. 2023
BETWEEN:
The Parts tell us that the document is between two or more parties.
2. Recital
This is a descriptive part. It is divided into two sub-parts and normally begins
With "WHEREAS".
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a) Narrative Recital - Nature of the proprietor's interest - i.e. how the
proprietor holds the land, e.g. freehold or leasehold.
eg, The Vendor is the registered proprietor as lease from the Government of the
Republic of Kenya of the residue of the term of Ninety Nine (99) years from the
First day of November One Thousand Nine Hundred and Eighty three of ALL that
piece of Land situate in N.W. of Mavoko Municipality in the Machakos District
containing by measurement nought decimal nought decimal nought nine eight
seven (0.0987) of a hectare or thereabouts and being Land Reference Number
12715/1415 (Original Numer 12715/10/9) as delineated on Land Survey Plan
Number 219588 annexed to the transfer registered as Number I.R. 44382/12
SUBJECT however to the revisable annual rent of Shillings Six Hundred and
Twenty Five the Act Special Conditions Encumbrances and other matters specified
in the Memorandum hereunder written.
eg, The Vendor has agreed with the Purchaser for the sale of the aforesaid property
(hereinbefore more particularly described) to the Purchaser…
3. Operative Part
Generally, it begins with the part of the deed called the Testatum:
a) Testatum
It introduces the operative part. It begins with the words "NOW THIS DEED
WITNESSETH" or "NOW THIS LEASE WITNESSETH" etc.
b) Consideration
The consideration must be stated. S.10 of the Stamp Duty Act – requires that all
matters and circumstances which affect the liability of any instrument to stamp duty
be fully stated in the instrument to be stamped.
In the case of a transfer by way of gift, the document normally states that the transfer
is made in consideration of natural love and affection which the Donor has for the
Donee.
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(i) In the absence of consideration, a resulting trust may arise in favour of the
transferor unless it is in favour of a wife in which case it would be presumed
to be an advancement. This is the general rule in voluntary transfers.
c) Receipt Clause
In a transfer, the receipt clause states "the receipt whereof the vendor hereby
acknowledges." This operates as a sufficient discharge on the part of the person
paying the consideration without the necessity of giving a further receipt.
NOTE: the clause is not conclusive evidence of payment and equity will always
permit proof of non-payment. To a subsequent purchaser without notice of non-
payment, however, the receipt clause operates as conclusive evidence of payment.
d) Parcels Clause
This begins with the words "ALL THAT'. The clause gives the physical description of
the property. Where parcels are lengthy, they are normally set out in the schedule to
the document.
E.g. “All that parcel of land known as I. R. No. 95553….” or “all the parcel of land
known as Title Number Nairobi/Block 1515/43”.
4. Testimonium
This begins with the words "IN WITNESS WHEREOF…"This part links the
preceding parts of the document with the seals and signatures of the parties.
5. Execution
6. Attestation Clause
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Under S.108 (1) of the RLA (repealed), prescribed forms had to be used unless the
prior authority of the Chief Land Registrar was given for the use of a different format.
Generally, however, a document under the RLA had the following parts:
1. Heading
Note:
(i) The date of the document appears towards the end of the document but
before the signatures of the parties.
Reason: Under the RLA, the entries in the Register are conclusive evidence of the matters to
which they relate. The State guarantees title.
2. Operative Part
S.108 (3) RLA provided that instruments under the Act must state the consideration,
if any.
Note: S.39 thereof which stated that anyone dealing with a registered proprietor for
valuable consideration need not inquire as to whether the proprietor paid
consideration for that property. Thus, a registered transfer under the RLA had full
effect so that a subsequent purchaser did not take the property subject to the vendor's
previous liability for any unpaid money.
b) Parcels Clause
3. Execution
The signatures and/or seals of the parties appeared immediately after the date of the
document.
4. Verification
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Under the RLA attestation was coupled with the additional requirement of
verification. This is now also provided for in Section 45 of the Land Registration Act,
2012.
The parts of forms under LRA are similar of the RLA (repealed)
1. Express Intention
The question to ask is: “What is the meaning of what parties have said?’’ and not ‘’what did
the parties mean to say?’’
The Court looks at the express, not presumed intention of the parties.
2. Whole Document
Where the transaction between the parties is contained in more than one document,
e.g. a Lease and a Renewal of Lease or Further Lease, the two documents must be
construed together.
• See: Plumrose Ltd v.Real and Leasehold Inv. Society Limited (1969) 3 All ER
1441.Held: Where one lease was described as supplemental to the other, the two
leases were to be read together in order to determine whether the supplemental
lease incorporated a covenant for renewal.
Words must be given their ordinary meaning as well as their grammatical meaning.
The words or phrases which are subject of construction must be given their obvious,
ordinary meaning as they are generally understood and accepted in English language.
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Ordinary-refers to the popular meaning or the meaning which the ordinary usage of
society applies to it.
i) The Courts will give words and phrases any special, technical or
customary meaning which the parties must have intended.e.g:
“Singular” includes plural (e.g. ‘purchaser ‘, may be used where there are more than
one
ii) Where the court is of the opinion that the ordinary meaning would
lead to some absurdity, repugnancy or inconsistency with the rest of
the document, it will modify that meaning to avoid that result.
The Court in Coopers & Lybrand v Bryant expounded the rule as follows: ‘According to
the ‘golden rule’ of interpretation the language in the document is to be given its
grammatical and ordinary meaning, unless this would result in some absurdity or
some repugnancy or inconsistency with the rest of the instrument…. The mode of
construction should never be to interpret the particular word or phrase in isolation (in
vacuo) by itself....’
This rule requires that no extrinsic evidence shall be relied on to contradict add or
vary what is clearly expressed in writing in a conveyance. Such evidence is not
admissible to add to, vary or contradict the terms of the document.
Read: Robin v Gervon Berger Association Ltd & others: ‘Where the intention of the
parties has been reduced to writing, it is general, not permissible to adduce extrinsic
evidence, whether oral or contained in writings such as instructions, draft, articles,
conditions of sale or preliminary agreements, either to show that intention or to
contract, vary, add to the terms of the document…. Extrinsic evidence be received in
order to prove the object with which a document is executed, or that the intention of
the parties was other than appearing on the face of the instrument.’
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granting the lease. Extrinsic evidence therefore explains the technical meaning
of the word “ repair”
A sensible meaning will be put on any error by correcting the error. Thus incorrect
spelling or grammar may be corrected and any words left in the document by mistake
will be ignored, but only if such correction gives effect to the parties’ express intention
as appearing from the whole document.
6. “Contra-Proferentem” Rule
Where a document has been drafted in a language chosen by one of the parties, the
document must be construed against the person who drafted it, in the event of any
ambiguity.
Where general words follow words of a particular class the general words must be
construed as limited to the same kind as the particular words.
E.g In the phrase “cows, goats, sheep and other animals”, the words “and other
animals”(general words)refer to domestic animals(particular words)
Note: If the general words are not to be so limited, there must be a provision to effect
such intention, e.g. “including but not limited to.”
The general rule in law is that an express provision will automatically oust an implied
provision. Implied terms in an instrument as are contained in statute will be ousted
by express provisions contained in the document executed by the parties. Alongside
this rule too is the rule that “falsademonstratio non nocet”. This latter rule is to the
effect that a false description in a document does not prejudice or vitiate its effect. This
latter rule is particularly applicable when interpreting the parcel’s clause.
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It may be necessary to look outside the document to determine the extent of the land
transferred.
There are several rules governing the construction of the parcels clause.
It means a false description does not void or vitiate a document if the intention is clear.
Where there is more than one description (Whether including a plan or not), the court
will apply the maxim to reject any description which is manifestly inaccurate. ‘The
erroneous description will be rejected as a false demonstration”.
See: Maxted v Plymouth Corporation (1957) CLY 243, where the England Court of
Appeal rejected a plan which, clearly inaccurately, excluded from the conveyance a
strip of land adjoining a road, which strip was included in the Contract of Sale.
2. Recitals
To the extent that they describe the property, recitals may assist in determining the
extent of the land comprised in a document.
3. Extrinsic Evidence.
4. Plan or Map
Where there is a verbal description and a plan, the person drafting the document must
make it clear which description is to prevail-i.e. whether the plan is merely illustrative
or whether it contains the operative description. e.g.
a. The words “more clearly described in the plan” would indicate that the plan is
meant to prevail over any deficiencies in the verbal description. See Eastwood
v Ashton (1915) AC 900
b. The words ‘for the purposes of identification only’ in relation to a plan would
clearly indicate that the verbal description is paramount and the plan is only
illustrative.
Note: Where the words used are ‘for the purposes of identification only’ and the
verbal description is unclear, the plan can be referred to in order to determine the
extent of the land conveyed. See: Wiggington and Milner v Winster Engineering (1978)
3 All ER 436
Presumptions
Courts may apply certain presumptions to aid them in the construction of the Parcels
Clause.
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Example: : the hedge and ditch rule-Where the boundary is delineated by a hedge and a
ditch, there is a presumption that the boundary is on the opposite side of the ditch
away from the hedge. See Vowles v. Miller (1810) 128 All ER 54
This is supposedly because a landowner, when planting a hedge, would stand on his
boundary line and dig a ditch along the line, and the soil from the ditch would form
the bank for his hedge.
REGISTRATION PROCESS
There has been a discussion of the registration and procedures prior to registration,
like valuation and stamping of transfer instruments with the Collector of Stamp Duty.
a) Once the valuation and stamping is done, present document plus completed
application for registration form in quadruplicate to booking counter. They are
stamped with received stamp
b) Day book number is indicated on both the documents and forms for follow up
d) Strong room officer retrieves relevant files and matches the documents
e) Investigation officer checks whether they are properly drawn and that there are
no encumbrances, may make recommendation for registration
f) The documents are given to the registry superintendent who assigns them to
assistant registrars to make entries
g) Assistant registrars enter the transaction on original title (RTA) and indicate
the time and date of registration which is the date of booking documents. RLA
new certificate of Lease/Title Deed is prepared, a similar case for LRA.
h) Documents are passed the Registrar who will sign if found to be in order
Electronic registry (Ardhisasa) is now used for properties that have captured in the
system, largely in Nairobi. This is subject of a later discussion.
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• RLA, various District Registries, including Nairobi District Registry
• RDA, Principal Registry in Nairobi, for all matters outside Coast & Coast Registry
for matters within the Coastal region. Was no longer applicable to land, other than
registration of building plans for subleases sale.
Post-2012 Regime
The parcels in each registration section or block are numbered consecutively, and the
name of the registration section and the number and letter of the block, if any, and the
number of the parcel shall together be a sufficient reference to any parcel
Given the decentralized nature, the registration units and districts under RLA were
adopted for LRA .
TASKS:
i. Identify: the various Forms for voluntary transfers in the Land Registration
(General) Regulations, 2017; and proceed to draw a Transfer of Interest in
Land, noting to point out the parts.
ii. Samples of: Transfer under RTA; Transfer of Land and Transfer of Lease under
RLA; Transfer under GLA (Indenture of Conveyance), noting to identify the
parts.
iii. Samples of: Transfer of Reversionary Interest (for sublease/lease sale) and a copy
of title with the endorsed transfer of reversionary interest; Transfer of Lease (for
lease/sublease); Transfer of Sectional Title, noting to identify the parts.
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