Glossary – Real Estate Terms

The definitions provided in this glossary are for general informational purposes only and do not constitute legal definitions. They are simplified explanations intended to help users understand common legal terms in everyday language.

This glossary is not a substitute for legal advice, formal legal definitions or consultation with a qualified legal professional. Legal terms may have different meanings depending on the context, jurisdiction or applicable laws. For official interpretations, please refer to the relevant statutes, legal texts or consult us.

A

Adjudication – The legal process of determining and recording land ownership, especially in areas without formal title.

Adjudication Committee – A local committee appointed to help with land adjudication in a specific area..

Allotment Letter – A document from a public authority giving a person the right to be issued a title to a specific piece of land, usually after the fulfilment of certain conditions.

Assignment – The legal transfer of property rights or a lease from one person to another.

B

Beneficial Owner – The individual who ultimately owns or controls a property, even if the legal title is held by another entity (for example, a company or trust).

Bill of Quantities (BQ) – A document in construction projects that provides a detailed list of materials, labour and other items required for the works, used for tendering and cost control.

Boundary – The legal lines that define the limits of a parcel of land.

Building Code (Kenya National Building Code) – The principal subsidiary legislation under the National Construction Authority Act governing construction practices, standards and requirements in Kenya.

Building Plan – A design or drawing approved by the relevant county government showing how a building will be constructed.

Building Permit – An official approval required before construction begins, usually issued by the county government.

By-Laws – Local laws made by county governments to regulate land use, building and zoning.

C

Cadastral Map – An official map showing property boundaries, ownership and registration details.

Caution – A legal notice placed on a land title to prevent any dealings without the cautioner’s consent, typically used to protect an unregistered interest.

Caveat – A legal warning placed on a land title to prevent any transfer or dealings without notifying the caveator (often used interchangeably with Caution in practice, though Caution is the statutory term).

Certificate of Lease – A document proving a person’s leasehold rights over land.

Certificate of Occupation – An official certificate issued by the relevant county government confirming that a building has been completed in accordance with approved plans and is safe for occupation.

Certificate of Practical Completion – A document issued by the architect confirming that construction work is mostly complete and the building is ready to be used, even if minor works remain.

Certificate of Title – An official document showing who legally owns a piece of land.

Change of User – A formal process to allow land use to change from what it was initially approved for (for example, from residential use to commercial use).

Charge – A legal claim placed on land or property by a lender as security for a loan. If the borrower fails to repay, the lender can recover the debt by selling the property, even though the legal ownership remains with the borrower.

Common Property – Areas in a development shared by all owners, such as corridors, parking or gardens in a sectional property.

Community Land – Land lawfully held, managed and used by communities identified under the Community Land Act, 2016.

Completion Documents – A set of documents that the vendor gives the purchaser near the end of a property sale. They are usually exchanged for the final payment and are needed to officially transfer the property into the purchaser’s name.

Compulsory Acquisition – When the government legally takes private land for public use, with compensation.

Conditions of Sale (Law Society Conditions of Sale) – Standardised terms and conditions published by the Law Society of Kenya that are often incorporated by reference into sale agreements for property.

Consent of Land Control Board – Legal approval required for certain land transactions in agricultural areas.

Construction Contract – A legal agreement between parties for the building or renovation of structures, outlining scope, cost, timelines and responsibilities.

Conveyance – The legal act of transferring ownership of real property from one person or entity to another.

Conveyancer – A legal professional (advocate) specialising in land conveyancing.

Conversion – The legal process of changing the tenure of land from one category to another (for example, from public land to private land).

D

Deed Plan – A map or diagram that shows the boundaries and size of a land parcel, usually prepared by a surveyor.

Defects Liability Period (DLP) – A period, usually after practical completion of a construction project, during which the contractor is responsible for rectifying any defects that arise.

Deposit – An initial payment made by the purchaser to demonstrate commitment in a property transaction, typically held by the vendor’s advocate in an escrow account.

Developer – A person or company that builds houses, apartments or commercial spaces for sale or rent.

Development Control – The regulation by planning authorities of the use and development of land and buildings.

Distress for Rent – A legal process where a landlord seizes a tenant’s goods (property) without going to court, to recover unpaid rent. The goods can be sold if the rent remains unpaid.

Distrained Goods – The tenant’s belongings that a landlord legally seizes (takes) under the distress for rent process, to recover unpaid rent. These goods may be sold if the tenant does not pay the rent owed.

Due Diligence (Property) – The process of undertaking thorough investigations into a property (legal, physical, financial) before a transaction to assess risks and confirm details.

Dwelling Unit – A residential house, flat or apartment designed for people to live in.

E

Easement – A legal right to use another person’s land for a specific purpose (for example, as a path).

Eminent Domain – The inherent power of the government to take private land for public use, even against the owner’s will, provided fair compensation is paid (known as Compulsory Acquisition in Kenya).

Encroachment – When someone builds or occupies land beyond their legal boundary.

Encumbrance – A claim, charge or liability that is attached to a property and may limit its use or diminish its value (for example, an easement or caution).

Environment and Land Court (ELC) – A special court in Kenya that handles all matters relating to land and the environment.

Escrow Account – A neutral third-party account (usually held by advocates) where funds and documents related to a property transaction are held until certain conditions of the sale agreement are met.

Eviction – Legal removal of a person or tenant from land or property.

Extension of Lease – Renewal or lengthening of the lease term of land.

F

Fixture – Something attached to land or a building that becomes part of it, like a gate or fence.

Freehold –  A form of land tenure where land ownership is indefinite and not limited in time, granting the owner absolute rights subject to land laws.

G

Gazettement – Official publication of land matters (for example, compulsory acquisition notices and new land regulations) in the Kenya Gazette.

Green Card – A historical document at the land registry showing a parcel’s ownership history and registered dealings, now replaced by the electronic register.

H

Habitable – A property that meets minimum legal and safety standards for people to live in.

I

Indenture of Conveyance – A historical type of title deed or document of transfer that was issued under older, now repealed, land registration regimes, primarily the Government Lands Act (CAP 280).

Injunction – A court order stopping someone from doing something on land, such as illegal construction or eviction.

Interest in Land – Any legal right, title or claim a person may have over land.

J

Joint Ownership – Land or property ownership by two or more people where ownership passes to the others automatically upon the death of one (through the right of survivorship).

L

Land Control Board (LCB) – A board that approves or rejects certain transactions involving agricultural land, as per the Land Control Act (CAP 302).

Land Consolidation – Merging fragmented land parcels into a single larger holding for better use, often under land adjudication.

Landlord – A person who rents out land or buildings to another.

Land Parcel – A distinct unit of land identified by a unique number or description.

Land Rates – Annual taxes paid to county governments on land.

Land Reference Number (L.R. No.) – The unique identifier assigned to a specific parcel of land in Kenya, used for registration purposes.

Land Rent – Annual payments made by people who lease land from the government, as part of the conditions for using the land.

Land Use Planning – The process by which public authorities regulate land development and use in an orderly manner.

Latent Defects Liability Period – A period after construction when the contractor or developer is still responsible for hidden defects that were not visible or discoverable during inspection.

Lease – A legal agreement where one party gives another the right to occupy land or property for a specified period.

Leasehold – A form of land tenure where a person holds rights to occupy, use and develop land for a specified, limited duration of time, rather than owning it indefinitely.

Legal Mortgage – A formal charge over land that transfers the legal estate to the lender, giving them full rights over the property in case of default (in Kenya, the prevailing and legally recognised form of security interest over land is a Charge).

Licensing – Permission to use land for a specific purpose without transferring ownership. Distinct from a lease as it generally does not create an exclusive interest in land.

Lien – A legal right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Liquidated Damages (Construction) – A pre-agreed sum of money payable by one party to the other in the event of a breach of contract (for example, for delayed completion in construction).

M

Mutation Form – A document used to effect subdivision, amalgamation or boundary adjustments of land parcels.

N

National Construction Authority (NCA) – A state corporation responsible for regulating the construction industry in Kenya, including contractor registration and setting standards.

National Land Commission (NLC) – The constitutional body responsible for managing public land, advising on land policy and investigating historical land injustices in Kenya.

Notice to Vacate – A written warning to leave rented property within a certain period.

O

Occupier – A person legally residing or using a piece of land, even if they do not own it.

Official Search – A formal check at the land registry to confirm ownership details, registered encumbrances (charges, cautions, easements), and other registered interests affecting a parcel of land.

Overriding Interests – Rights over land that exist even if they are not registered in the land register, but are binding on the proprietor.

Ownership in Common – Land or property ownership by two or more people where each owner has a distinct, proportionate share, and their share passes to their heirs upon death, not to the other co-owners.

P

Parcel Number – A unique identifier for each registered piece of land (also known as L.R. No.).

Partition – Division of jointly owned land into individual portions.

Patent Defects Liability Period – A set period after construction is completed during which the contractor is responsible for fixing any visible or obvious defects.

Planning Permission – Approval from a county government to develop or use land in a certain way, often granted after a development application.

Possession – Physical control or occupancy of land.

Practical Completion (Construction) – The stage in a construction project when the works are substantially complete and ready for beneficial occupation, even if minor defects remain.

Prescriptive Rights (Adverse Possession) – Legal rights (including ownership) gained by long, uninterrupted and open use or occupation of land without the owner’s permission (squatter’s rights, but a legal process is required to formalise the rights so acquired).

Private Land – Land held by individuals or private entities under freehold or leasehold tenure.

Profits à Prendre (Profits) – The right to enter another’s land and take something naturally occurring from it (for example, timber, minerals, grazing rights, fishing rights). Unlike easements, the beneficiary of a profit does not necessarily need to own adjacent land.

Public Land – Land owned by the government and held in trust for the people of Kenya, which is managed by the National Land Commission.

R

Rates – Annual land taxes paid to county governments.

Real Property – Land and anything permanently attached to it, including buildings and fixtures.

Registration of Land – Legal recording of ownership or interest in land at the Land Registry, making it legally recognised and enforceable.

Restrictive Covenants – Agreements that restrict the use of a parcel of land for the benefit of another parcel of land, usually specified in a certificate of title.

Right of Occupancy – A form of tenure that grants a right to occupy and use land without necessarily granting full ownership.

Right of Way – A legal path or access route over land for passage.

Riparian Land – Land next to a river or water body, subject to specific environmental laws and regulations concerning use and development.

S

Sale Agreement – A legal contract between a purchaser and vendor for the sale of land or property, outlining the terms and conditions of the transaction.

Sectional Property – A system of owning individual units within a building or complex, with shared ownership of common areas, under the Sectional Properties Act, 2020.

Servitude – A legal right to use someone else’s land (servient tenement) for a particular purpose for the benefit of another property (dominant tenement) (it is a broader term that may encompass easements, profits à prendre, restrictive covenants).

Setback – The minimum distance a building must be from the property boundary, road or other buildings, as per planning regulations.

Site Plan – A detailed drawing showing the layout of a proposed development on a specific piece of land, including existing and proposed structures, roads, services, etc.

Squatter – A person who occupies land illegally without ownership or lease rights.

Stamp Duty – A government tax levied on certain legal documents, particularly property transfers, leases and charges.

Subdivision – Splitting a large parcel of land into smaller parts, requiring planning approval and new deed plans/titles.

Survey Plan – A map prepared by a licensed surveyor showing the boundaries, dimensions and features of a piece of land.

T

Tenant – A person who rents land or property from another.

Tenancy Agreement – A legal contract between a landlord and tenant, outlining the terms of the tenancy.

Tenure – The legal basis under which land is held or occupied (for example, freehold or leasehold tenures).

Title Deed – An official document proving ownership or a registered interest in land under the now-repealed Registered Land Act (CAP 300) (Kenya is now registering interests in land through Certificates of Title).

Transfer of Land – The legal process of changing ownership of a land parcel from one party to another, typically through a sale.

Trust Land – Historically, land held by county governments in trust for the residents of that area. Most Trust Land is now being converted to Community Land under the Community Land Act.

U

Unlawful Occupation – Staying on land or property without legal permission.

User – The legally approved purpose for which land may be used (for example, residential, commercial, industrial users).

Unregistered Land – Land for which no formal certificate of title has been issued, often subject to customary law or in the process of adjudication.

V

Valuation – An expert assessment of the market value of land or property, usually conducted by a registered valuer.

Vendor – The seller of land or property.

Verification of Title – The crucial process of checking ownership documents and the land register before buying land to confirm authenticity, ownership and absence of encumbrances.

W

Wayleave – A legal right, usually granted to utility companies, to install and maintain infrastructure (like power lines, water pipes or roads) through private land.

Withholding Rent – Refusal by a tenant to pay rent, usually due to unresolved issues like repairs (must follow legal channels to avoid breach of tenancy agreement and potential eviction).

Z

Zoning – The division of land by planning authorities into areas (zones) where specific land uses and types of development are permitted or restricted.