The underworld of Construction: Part 5

Timber theft explained

Continued from part 4

This guy who was measuring my timber at Kawangware spoke in a very soft voice but with a lot of conviction that I believed what he was saying. He actually confessed that the reason he left Rongai was primarily due to threats from one of the customers in the yard he worked for. The said customer after getting conned promised to come for the heads of all those he believed conned him; and that included this young man. Once he heard that the owner of the yard had been accosted by some boys who threatened to have his severed head and balls collected in one of the bus parks, he knew it was time to hit the road.

Without warning he started explaining the all-important tricks and I was all ears. You see that measuring tape is usually tampered with. If you are keen to observe, it will have some feet missing, as in it could move from 1 to 2 to 4 to 5 then to 7 to 8 to 9 to 11 to 12 to 13 then 15 and so on. This essentially means that if that tape indicates 9 feet, in the real sense the correct length is 7 feet. If it indicates 15 then the actual length of the timber is 11 feet and so on. In essence you could be losing 3 feet on average per timber. If you have a quantity of 2000 pieces, then obviously you will have lost as much as 6000 feet and if each foot is costing Kshs 30, then your loss would be as much as 180k. That is just one of the tricks.

The second trick he mentioned was in the recording of the timber as it is measured. You see, the fellows use a piece of paper and a pen and they normally draw tu-small lines depending on the length of the each timber measured. Meaning, there will be a section for 9 feet pieces, 10 feet, 12 feet and so on and a ka-line will be drawn in either of the sections depending on the measured and the ‘shouted aloud’ length. What I suspect happened in my case is that, the guy who was keeping the tally would add imaginary tu-lines whenever my foreman who was to keep an eye on him got distracted. When I flashed back, I remember that there were as many as ten fellows each given a specific role in the set up but some were just meant to distract us.

The other but most unlikely trick is to ensure that the timber is ferried in more than one truck and if you don’t have a trusted guy accompanying the lorry, then they can drop some at designated places on their way. And they’d go to the length of befriending your foreman or fundi in case you send them before the actual purchase and make him part of the squad to defraud you.

The other thing they’d do to novices would be to measure poor quality timber. For an experienced hand, whenever you encounter poor quality timber or one with unusable section(s), the feet are normally discounted or the entire piece is kept aside.

So how are you supposed to safeguard against such tricks. Read below:

1.      Make sure that the measuring tape being utilized is your own. It is better to buy one (they are very cheap) because it will obviously not be tampered with.

2.      Make sure that when the measuring is being done, keep your own tally for later comparison at the end of the measuring. In the event there is a discrepancy, then make it clear that your tally is the correct one. If they insist that it is not, then let the exercise be repeated.

3.      Always make sure you have a trusted hand (preferably your fundi) to verify the quality of the timber and be in charge of ensuring poor quality is set aside or the process of discounting the unusable sections is done and fairly so.

4.      Never trust your fundi or foreman to take charge of the entire process in your absence. Notice how easy it is to co-opt them into the gang and milk you dry. Never ever delegate this fully.

5.      Where possible, let the seller deliver the timber to your site and measure from there. At least in your site you will have absolute control.

I was conned in broad daylight by I told myself that it will never happen again. You see the other day I was purchasing timber and some guy from Ruai attempted to use these tricks on me. The fellow had discounted his prices with the assumption that he’ll apply the tricks on me. I proved a hard nut and after sealing all the loopholes, the measuring was done but at the end of the exercise, the fellow confessed he was to make a ‘loss’ because the prices were unbelievably low and he never managed to steal anything. He even contemplated chasing me away without the timber but I cornered him. The other day I called him and informed him that I need to purchase some more but he declined to sell to me; of course he knows am a bull that cannot be milked.

Be advised and don’t let them con you, least of all with these tricks. By the way, am sure they are probably devising other strategies to steal from unsuspecting Kenyans.

The other day I went to see some guy I had sold to some plot. He is currently constructing his residential house and what I saw on his site was quite sad. I discovered he is using the wrong professionals. Topic for another day, well next post.

The underworld of Construction: Part 4

Timber theft

Continued from part 3

This Momanyi guy found us on the site when we were busy chatting with my foreman and introduced himself. He was all smiles and presented to the foreman his quotation for timber. By the way, some of us who are small-bodied and sometimes dress anyhow without much thinking are mistaken for KYMs on site. That reminds me someday when my brother in-law came to see me on site and this entrepreneurial young man who wanted to enlist the owner of the house for garbage collection service was all over him asking for business and ignoring me…then my brother points at me and advised him that am the owner of the site to his utter shock and subsequent apologies…story for another day.

The quote in comparison to the others was so favourable, I could not believe my eyes; what with prices lower by as much as Kshs 3 to 5 per foot. I asked the guy why that is the case and he explained that they get their timber from Tanzania at very good prices hence the favourable prices to their customers. I swallowed that hook line and sinker and we agreed that we shall visit him at his yard and see the timber.

The day after we drove to Rongai together with my foreman and all the way to Nkoroi where the yard is located. We were loaded with the cash to do the purchase because it was meant to be a cash deal. They had very nice timber and we agreed that we shall buy from there. Immediately we agreed, he called some two transport guys and negotiated the transport on our behalf, a nice dude or so I thought. He thereafter called his men into action; around eight of them to measure the timber. We agreed that my foreman will keep any eye on the recording of the measurements while I keep an eye on the actual measurement, tight controls or so we thought. The timber was measured and loaded without any issues and truth be told I never noticed any anomaly. It was then transported to my site and offloaded.

Something crossed my mind, I thought it was wise to verify the delivery. I thus instructed the fundis to measure the timber again. To my utter shock, what I paid for as compared to what I had on the ground had a discrepancy of 40%; in other words it was 40% less. Wait….so what happened. I thought I had a hawk eye when the measuring was being done and I also accompanied one of the delivery trucks to the site while the foreman accompanied the other. Mystery, mystery…conned in broad daylight…but how??

I swung into action, called the guy and told him that he had conned me. Of course he refused. I insisted that I’ll take up the matter to the cops but he sounded unmoved. I drove back to Rongai the morning after and reported to the police station about the ordeal. The cop serving in the OB section just laughed at me and before I finished my story he asked me whether I had bought the timber from a certain yard owned by Kisiis. He confided in me that they have received so many complains about that yard and they have not managed to do anything because it is hard to prove that the guys actually steal…wait…: ”And why don’t you set a trap to confirm is they steal”, I asked him. Of course they never really bother because in the past despite arresting the owner severally, the guy always found his way out mysteriously. In my thinking this obvious pointed to something bigger and I therefore so no need of pursuing the matter further with the cops.

I went back home dejected and trying to figure out how to deal with the matter. I even contemplated using unorthodox means to recover the loss, like threatening to go for the owner head with them boys. Painful as it was, I decided to cut my losses as opposed to throwing good money in an attempt to recover the loss. How then did they steal from me??

After utilizing the timber which was far less than was needed on site, I decided to shop around and look for a place to top up. My little shopping around landed me in Kawangware where I met a lady who owned a very well stocked yard. We had a chat with her in her office and I told her about the Rongai incidence and she laughed at me. Before I narrated the entire ordeal, she told that it is commonplace and especially in some yards in Rongai to get sellers who underquote but steal from you. She advised me that it is better to pay the market rates and get value for money as opposed to look for cheap stuff and get conned. Anyway I bought timber from her and after confirming the delivery on site, it was tallying with what I paid for. But while her KYMs were measuring the timber, one opened up and confirmed that he once worked in a yard in Rongai and he had no qualms telling me the various ways they were stealing from unsuspecting customers.

It will shock you but in the next post I’ll tell you how it is done and how to arm yourself just in case some fellows have planned to do it on you. I was conned in broad daylight but some things you never wish they happen even to your worst enemy…. Be warned and advised.

The underworld of Construction: Part 3

Continued from part 2

I embarked on having controls in place to safeguard my interest; after all it was plainly obvious that all and sundry were out to milk me dry. I had to look for another hardware guy and this time round I strictly instructed him to only deliver good in the evening at around 6 PM in my presence. I’d personally verify the goods.

I also managed to get a new foreman who role was only to supervise the fundis and the KYMs and nothing else. I took charge of negotiating with suppliers and paying them. I realized that this was a big loophole in the initial set up. What the other foreman would do; he’d insist that anyone supplying anything on the site, must part with something small for him. Once a supplier is compromised, it simply means they can just enter into an arrangement to supply air as long as they both gain.

To safeguard against loss of man-hours (fundis and KYMs) I’d demand that the foreman pre-plans the work and for each phase he’d give me the labour estimates to finalize the works. I’d independently confirm whether the estimates made sense. I’d then give him some contract to finalize the works and would obviously throw the control to him. He’d then push the fundis to deliver and maybe make a small saving. That arrangement worked well for me because I’d relinquish that bit of getting the best out of the workforce.

As regards material pilferage, I took one of the guys on site and made him a mole. He’d be my eye on the ground to ensure no-one steals materials. But again bestowing all this trust on one person never brought a sense of security on my part, you see once bitten twice shy. So I got yet another mole and as long as I could get comparative info from them, it made much sense to me. And by the way, you should never keep a mole for long; after all they easily get compromised, so you keep shuffling them. I’d also make surprise visits just to ensure that am unpredictable.

The other thing which I intentionally did and which worked is to create a perception that am really very tough. The moment these fellows realize you are a weakling, they’ll take advantage of you. But when the fear is instilled in them, then they’ll think twice. If you have to slap someone, take them to the cops or whatever else you can do to instil the fear.

I managed to bring some sanity on the site after the tough lessons. The other very important thing I noted regarding procurement was the fact that same items, same quality, exact products would retail at different prices in different hardwares. You’d be shocked to sometimes even find a price difference of 20-30% in hardware’s within the same locality. Some clever hardware guys’ will also price some items cheaply and creates the perception that all their goods are fairly priced, only to inflate other goods once you become a repeat customer.

I also realized that well priced and professionally approved alternatives would also create a big saving. Like I discovered some items they call fibre mesh which act as a very good but much cheaper alternative to BRC mesh when casting the slab. You’ll also hear of pre-cast concrete blocks which I have never used which can bring a saving as opposed to the conventional mass concrete.

Finally, investing in knowledge is extremely important. Like being able to interpret a BoQ would give you an idea of the materials estimates as opposed to relying on that jua-kali foreman. Get to know what a substructure or superstructure is, even those Y12's and Y8's should not sound like Greek, and even those impregnated tank bearers and slats should not overwhelm you. There is a certain word I heard from the fundis which was quite funny…'makirigishi'…of course I had to understand what they were but I’ll leave it to your imaginations.

In thenext post I’ll tell you about how that crafty Rongai fellow conned me in the name of selling me timber…and the useless cops who could never help me....

Of Certificates and Ballots

Guest post by Samuel G. Njenga

Did u know that the Kenyan Government only recognizes title deeds and allotment letters as bona-fide documents to show proof of ownership of land? And by the way, from our previous lessons, the allotment letter is just an offer and the expectation after receiving the offer is to accept it by way of paying the charges therein.

So, when you purchase a plot from a land buying company and all you receive is a certificate from the said company, then please take note that the government does not recognize that you own the plot. In fact the agreement may only say that you own a plot excised from the mother title so and so.

The origin of these certificates and ballots was by land buying companies whereupon the company would buy a big chunk of land, or would be allotted by the government. The shareholders of the company would then buy shares and you’d find a share would mean one or several parcels of land. Ideally, the shareholders would ballot for the available pieces, hence the ballot card and numbers. Thereafter, they’d pay some charges to be shown the parcel (s) and process the titles via the buying / ranching company. We have heard of Embakasi, Githunguri, Kihiu Mwiri, Kiganjo, Dandora farmers, Mboi Kamiti, Nyakinyua etc, all ranching companies that would apply this concept. Till today, you’ll find members who never paid the requisite charges to acquire title deeds still holding on to original documents (very old receipts, ballots & certificates) as proof of ownership. I once saw a mzee who had framed a certificate and held it so dear it was kinda comical. But then, they are / were original owners and any sale would mean a transfer is executed at the company offices.

Fast forward to today. Some guys will buy huge chunks of land, subdivide physically and sell using certificates. My biggest question has always been why a serious investor in land would behave like that. But purchasers are also to blame; why do you buy a plot with a certificate worst of all from an individual? This is plainly lazy on the part of the guy selling.

In some cases, the concept is acceptable like the Mhasibu case where they sell a concept and members buy into the concept. When cash enough to commit to the deal has been received, the deposit is paid and the balance is paid upon completion by those interested. Title processing comes much later after members have fully paid and subdivision is completed. Notice the advantages of such a concept in the fact that members fully enjoy economies of scale because the bigger the land, the cheaper it becomes. Again, when well negotiated, the members acquire the plots at a cost which is way below the market prices.

For the former case where an individual just buys a huge chunk and sell plots with certificates, take note of the risks therein:

1. For the individual / company selling, if they decide to use the land as collateral, who would stop them? I have heard cases where dubious fellows use the land as collateral only for the purchasers to be left in a fix when the fellow defaults. You’ll end up lining up with a bank somewhere where the bank claims lenders interest and the purchasers claim purchasers’ interest.
2. For the purchaser, you can never use the land as collateral because no bank will accept those certificates. The ownership of that property only reaches the purchaser upon transfer of the title in their name.

I have also witnessed interesting cases especially in Ruiru (Murera Area) where guys subdivide land into tiny plots measuring 60ft by 40ft and sell using certificates. What purchasers should know is that you can never get a title with that size of a plot around that area. In fact the smallest piece you should buy must be a minimum 40ft by 80ft or equivalent area. My advice is that we avoid these certificates at all cost. However, whenever purchasing any land in those schemes, then it is wise to demand for those original documents as part of due diligence.

Next we’ll look at joint property ownership and the legal implications.

What is in this official search document?

Guest post by Samuel G. Njenga

Paul and I met this broker who was introduced to us by a friend in Rongai. This was on a cold Thursday morning sometimes in August 2010. The guy went ahead and showed us a very nice 2 acre piece of land around Rimpa, some place between Rongai and Kiserian. It had an old building and was on sale. We felt the price quoted by the owner was quite low. However, the story went that the owner was liquidating a lot of his assets due to financial constraints hence the low figure quoted. We expressed interest in the property and the broker called the owner who apparently was in Kiserian. We therefore decided to drive on to Kiserian and meet the guy.

On reaching Kiserian we navigated our way to some dingy looking pub where the owner was having a drink with some other guys. We got shocked because in front of us was a former KANU bigwig who seemed a shadow of his former self. The guy looked unkempt and in comparison to the man I knew in his hey days, it seemed like life had not be rough on him. He had a unique look and it was not possible to mistake him for someone else. I just realized how fast the tide can turn against you especially when in the political cold.

After the intros, we told the old man that we were interested in his property. He told us that we are not the first to express interest and if we really wanted the property, then we needed to make a commitment as fast as possible. Red flag?! Indeed yes, coupled with the fact that he was a former politician (another red flag), I knew we had to trend carefully. We informed the guy that however much we want the land we needed to confirm it is OK by way of carrying out an official search. He informed us that he is to travel to Kericho the day after so if we wanted his land then we had to move fast. We promised to revert back to him as soon as we had the search. No-one should ever force you into a quick deal before you perform the necessary due diligence.

As we departed for Nairobi, I called my contact in Kajiado and gave him the LR number so that he does the search. At around 4pm, my contact in Kajiado called me. He is usually a funny fellow but from his first words, he sounded shocked. He told me that he had the search with him and it was like none he had ever seen before. I was quite curious to know what was therein. He called me by my name and told me, “I thought I told you to be very careful with some of the land you keep attempting to buy”. I told him am usually careful and I do the best I can. “Forget about that land”, he retorted. He went ahead to inform me that the search had so many encumbrances to an extent that they could not fit in the space availed for listing them on the search document.

When I received the search the day after, it made some interesting reading. It had as many as 4 entries other than the normal entries of the name of the proprietor and when the title deed was issued. The 4 entries were as below:

1.     A restriction that no dealing will be registered on the land unless the registered owner appears in person.

2.     Caution by some guy claiming lender’s interest.

3.     Charge in favour of a financier.

4.     Further charge in favour of the same financier.

In total the land was charged to the tune of 9M and it was only worth 3M at the time we viewed it. I am sure by the time of the charge which was around 2004, it must have been worth 300k. How the charging was done for such a value, don’t ask me.

An official search is a confirmation by the respective land registry on behalf of the government on the ownership and status of a particular title. It shows the following details:

1.     Title number, search number and the date the search was done.

2.     Nature of title: Absolute or lease.

3.     Approximate Area in hectares

4.     Name and address of proprietor and whether a title deed has been issued to the proprietor.

5.     A section on inhibitions, cautions and restrictions.

6.     Encumbrances section (leases, charges etc.)

7.     Pending applications

The search document details are filled based on the content of the green card upon and must be signed and sealed by the Registrar. For a title to be clean, then No.s 5 to 7 must be nil. If not, and especially section 6, a charge entry must have a corresponding discharge entry to free the charge. A title with the any unresolved issues in No.s 5 to 7 is not transferable.

A quick look at the title document itself:

Other than confirming the title number, the approximate area of the plot/land and the proprietor details, one needs to confirm the entries in the proprietor section (part B) which should tally with the entries on the search. Take note of the date the title was issued and confirm it is the same with what appears on the search. There is also the need to have a look at any entries in section C (encumbrances section) because therein they list them. Any entry in this section must be accompanied by a signature by the registrar. Remember the following important points:

•       A charge entry must be accompanied by a discharge entry for the same amount and by the same chargee to release the charge.

•          A caution can only be removed by the entity that placed the caution, same with restriction.

•       If you come across a discrepancy in the proprietor details as in names, nature of title and approximate area, then be very careful. Take for example a discrepancy in the name of the proprietor (e.g. use of initial in the title as compared to full names in the ID), the legal process get quite interesting where the proprietor must go through a correction of names in the title. The process starts with swearing an affidavit, the same is presented to the registrar who writes some letter to the area chief, who must identify the proprietor and give them a letter. The proprietor must then present themselves to the relevant Land Control Board to get consent to change the name and he/she takes all the docs to the registrar for the change to be effected. Quite a procedure.

Special circumstances when you can proceed with a deal when a title is encumbered:

For developers who are financed, the titles for the land they are developing are usually charged by the financier. What normally happens, in the case when a customer who pays up for a house, a partial discharge for the specific title to the unit is done hence freeing it from the charge and allowing for the transfer to proceed. So whenever you carry out a search for the title of the house you want to purchase, you should not be worried to find it charged by a financier because essentially it’ll undergo a discharge and the transfer will be executed. However, a vacant plot / land must be free from encumbrances.

Next lesson will dwell on understanding a sales agreement, I know most people have signed it but they were not sure what some clauses meant.

Due Diligence when investing in real estate

Guest post by Samuel G. Njenga

On this particular Saturday morning sometimes in 2008, my partner Paul and I met one of our brokers who showed us a very nice piece of land in Ruiru off the Eastern bypass. It was approximately 2  km from the junction of Thika Road and Eastern bypass towards Ruai, third row from the tarmac. The site was wonderful but we have since learnt not to be so excited by the aesthetics of a shamba (farm). The shamba was up for sale and the good thing is that the broker knew the owner at a personal level.

We expressed interest to acquire it and decided to carry out due diligence. The 1.25 acre shambas in Ruiru were originally owned by shareholders of Githunguri ranching company. The first thing we do is to check on the survey maps to confirm that the ground we are being shown and the title number as seen on the map adds up. We then check the original owner from the records of Githunguri coz the company still exists. It is easier to trace the original owner and any subsequent transfers of title in Thika. For this particular shamba the story went that the original owner (an old lady) had given the son the land as a gift but the son had never transferred the title in his name. It was thus easy to confirm coz the title was still in the name of the original owner. After that confirmation, we carried out an official search at Thika and confirmed the records. When we finally met the son, we negotiated the price further and agreed. However, we insisted that the son takes us to the mother, who in actual sense was the proprietor. We drove all the way to Githunguri and met the old lady at her home. She actually confirmed the story and agreed to appear before a lawyer and sign the agreement and any other document.

We normally demand that the Vendor must have all the completion documents including the consent to transfer. On the day of signing the deal, we met the Vendor and insisted that we go to the site first so that we are shown the beacons before we enter into an agreement and pay 10% deposit. When we landed at the site, we got the shock of our lives. We found fresh subdivision beacons on the land. In my estimation, the land must have been beaconed the day before. You can imagine the reaction of the Vendor. He was tongue tied, speechless ama aliona na mdomo… Of course the deal never proceeded but I advised the old lady to carry out investigations and establish what could have happened.

A week later, I met our broker and he told me what exactly had happened. The land in question had been on sale for like 6 months or so. The original broker in charge of the sale had circulated copies of its title to so many other brokers. The guy had also narrated the story to other brokers of how the son had acquired the land from the mother as a gift and the fact that the son had never executed the transfer. Crooked fellows just did another title (similar to the copy they had accessed) and the ID in the name of the old lady. When a prospective purchaser got wind of that the land was on sale and the guy was given the story behind the ownership he decided to purchase. When the prospective purchaser did a search in Thika, the title was clean and in the name of the old lady. Little did he know that the purported vendor was an old lady whom the crooks just hired and one of the crooks posed as the son and the vendor was convinced that the story added up. So he paid for the deal in cash and received the fake title, consent to transfer, passports and copies of the fake ID and fake PIN. So the guy decided to physically subdivide the land as he awaited the transfer to go through. It was shock on him…. He was suckered and lost a whopping Kshs. 2.5M.

Basically, I’d also think we survived by a whisker though we were dealing with the real owner but the prospects of a court case chasing our hard earned cash was not anything we’d have wanted. But again you may wonder what error of omission or commission did the conned guy commit.

How best can you carry out due diligence?

1.     Always trust your 6th sense; basically your instinct. When you feel like there is something not adding up, most likely there is a problem. When you meet a vendor who does not sound confident and wants the deal done as fast as possible, it is a red flag.

2.     Get to know the history of the land you are buying from the locals. You’d be surprised at the kind of info you can gather from locals. Biggest challenge is land / plots in town; imagine CBD, whom do you approach? Like I remember in 2003 when I first bought a plot in Syokimau, the sales lady from the Company I bought from mentioned that there is some contentious land whose ownership is claimed by KAA but some fellows are selling. It is so sad that turned out to demolitions witnessed the other day…so so painful. My point is, the info is always there if you are keen to ask around.

3.     Check the land / plot on the survey map. This will also ensure that whatever you are being shown is in line with what the area map shows. A survey map clearly shows the LR numbers, the access roads etc. Make sure it is an authentic map. At the survey of Kenya they go for around Kshs. 300.

4.     Carry out an official search for the land /plot and ensure that the title is clean. A clean title has no encumbrances (cautions, restrictions, charges, etc. we’ll talk about these later). Take note that a search cannot tell you anything about a fake title. It is just shows the records as per the green card at the land registry. However, when a fake title is presented to the land registry for a transfer to be executed, then they’ll notice at that point; but by then you’ll have probably lost your money.

5.     Use an Advocate who understand conveyance and one who is not only licensed to practice but has renewed their license. Some advocates have no clue about conveyance. They normally must renew their licenses annually. By the way, a transaction done by a lawyer who is not licensed is voidable. This site gives this info: http://online.lsk.or.ke/online/searchengine.php

6.     There is that Ndung’u report. It is wise just to confirm that what you are buying is not mentioned in that report.

7.     Last but not least, ensure you confirm that the ID of the vendor is not fake. You can use security experts / firms to confirm that.

8.     If you can, get to have an idea where the vendor works or lives. Wherever possible, just pay a 10% deposit and le the balance be held by an advocate to be released upon successful transfer.

Play safe because losses in land deals are usually big and painful. You might cry in the toilet after s**t hits the fan.

Next lesson we’ll talk about how to interpret the official search document and special circumstances where you can go ahead and deal in a plot which has encumbrances especially when charged by financiers.

What is a FAKE TITLE DEED?

Guest post by Samuel G. Njenga

A deed is a signed agreement especially about the ownership of property or legal rights. A Title deed is a legal document providing somebody’s right to property and subsequently ownership.

Then what is a deed plan? This is a signed plan by the Director of Surveys showing the precise particulars of a surveyed piece of land. It shows the details as in the shape of the plot, the distances and bearings all-round the plot, scale of plotting, Deed plan number, land reference no., size of the plot in hectares, signature of the Director of Surveys, the date of authentication by the Director of Surveys and above all it shows if the plot is a New Grant or an extension of lease. This is practice is under the provisions of Registration of Titles Act (RTA). This deed plan once it is duly prepared, it is attached to a certificate defining the current owner and any endorsements by the relevant Registrar in the event the property has changed hands or there are encumbrances therein whatsoever relating to the plot.

What about a mutation? Under the Registered Land Act (commonly referred to as Cap 300) the mutation form shows how a bigger land (mother) mutated into smaller pieces and the details of the proprietor (Names, ID, box number and signature). It further shows the date the surveying was done. It also details the subdivision details (existing roads, LR numbers of the resultant plots, the exact measurements of the plots and their areas in hectares). Other signatures therein include the one of a licensed / district surveyor and the land registrar who prepared the resultant titles. This document is ordinarily forwarded to survey of Kenya for purposes of amending the RIM (Registry Index map) which basically keeps track of all subdivisions in a specific area.

Then what is the meaning of the word “fake”? To make something false appear genuine.

From the foregoing therefore, a fake title deed is a false replica of a genuine Title deed where it could have all the attachments but does not relate to any physical piece of land. Equally it purports to confer a right that doesn't exist.

In early 1990's there was the infamous 13th floor of Ardhi House where false documentation was done to support surveys and issuance of Title deeds by the unsuspecting authorities. This floor was in reference of a room in River Road Nairobi. After all Ardhi house goes up to 12th floor. The fraudsters could therefore generate documents including allotment letters, Part Development Plans (PDP) and all that appertains to excision of land from the Government land (GL). They could even go ahead and file these documents in the files of the Ministry of lands using inner house staff of the Ministry at a small fee. That is the point where corruption sets in the process. It even becomes difficult for the Ministry to trace the entry point of the fake documents in the Ministry’s genuine files. Where allocation of a genuine plot is substituted with the “fake” one it becomes even more complex to unearth the conversion stage from a genuine Title deed to a fake one.

Would a naked eye be able to identify a fake title? From the aforementioned info, it gets very tricky because most fake titles are replicas of the original, meaning the details therein are the same. How then can you tell it is fake? It is pretty hard, but the easier approach is to tell a fake owner because obviously the ‘owner’ should have other document especially the ID card. We also have document experts who can verify the title. Most security companies / experts can verify IDs. Banks when financing land deals use experts to detect forgeries of titles and IDs. If you carry out proper due diligence you should get to know if the owner is the real one and if the documentation is proper.

By the way, other than fake titles, whenever then you transact with plots, take time to carry out proper due diligence to establish the history and more importantly the conception process of the plot. Only then you will tell the plot was grabbed or was acquired the right way. Else you could invest on a road reserve where caterpillars of the Ministry of Roads will be your obvious guests. In this case no compensation by the state will come your way as the rights of the society surpasses individual interest.

A green card is a document that holds original records of all transactions relating to a piece of land/plot. This means at the issuance of a new title, it must be preceded by opening a card for it. Any subsequent transactions relating to the plot/land are recorded there. Normally when a subdivision is done, a green card will be opened for each sub-plot  Maybe the seller had reached the stage where the card had already been opened but the title not yet issued. However, that is the last and the easiest process when subdividing land. The green card is applicable to the registered Land Act and is resident at the district land registry level.

We also got the white card applicable to Registration of Titles Act, mostly leases and is resident at Ardhi house as well as at the district level; they are usually put together in binders.

Finally, do you know that an official search at the land registry office is not sufficient due diligence?? I’ll expound more in the next topic as we look at how to carry out a comprehensive due diligence you can carry out to protect yourself from getting conned when purchasing land.

Our next lesson will be on paying due diligence before investing in real estate.