Types of Interest in Land in Kenya
What Are The Types of Interest in Land in Kenya?
In Kenya, there are two types of interests in land: legal interest and beneficial interest.
- Legal interest refers to the formal ownership of an interest or right over land. This means that the person with legal interest has the legal right to possess, use, and dispose of the land.
Legal interest is often evidenced by a title deed or other legal document that shows the ownership of the land.
- Beneficial interest, on the other hand, refers to the right to receive benefits resulting from the land, such as sale proceeds or rental income. A person with a beneficial interest does not have formal ownership of the land but has a right to benefit from it.
A beneficial interest can be held and transferred separately from a legal interest in the land. For example, a person may have a legal interest in a piece of land but transfer the beneficial interest to another person, who will receive the income generated from the land.
It’s important to note that legal and beneficial interests can be held by different people and can be transferred separately.
In addition, a person may have both legal and beneficial interests in the same piece of land. Understanding the distinction between these types of interests is crucial in the ownership and transfer of land in Kenya.
What Are The Different Types Of Interest In Land?
In addition to legal and beneficial interests, there are also possessory interests that are related to the right to possess and use the land. These include:
- Fee simple absolute: This is the most complete and unrestricted type of possessory interest. It gives the owner the full and unconditional right to possess, use, and dispose of the land.
- Life estate: A life estate is a type of possessory interest that gives the holder the right to use and enjoy the land for the duration of their life. After the holder’s death, the land reverts to the original owner or passes to another designated person.
- Leasehold: A leasehold interest is a possessory interest that gives the holder the right to use and enjoy the land for a specified period of time. This is typically done through a lease agreement between the owner of the land (the lessor) and the holder of the leasehold interest (the lessee).
The lessee has the right to use and enjoy the land for the duration of the lease, subject to the terms and conditions set out in the lease agreement.
Understanding the different types of interests in land is important for property owners and prospective buyers, as it can affect their rights and obligations with respect to the land.
What Is The Nature Of Interest In Land?
The nature of interest in the land refers to the legal rights or entitlements that a person has in relation to a particular piece of land. This can include ownership, possession, or use of the land.
The type of interest that a person has in the land will depend on the specific legal instrument that creates or transfers that interest, such as a deed, lease, or mortgage.
In general, interests in land can be classified as either freehold or leasehold. Freehold interests are those in which the holder has ownership of the land, either in perpetuity or for an indefinite period of time.
Examples of freehold interests include fee simple absolute, life estate, and conditional fee estate.
Leasehold interests, on the other hand, are those in which the holder has a temporary right to use and occupy the land, subject to certain conditions and limitations. Examples of leasehold interests include tenancies and ground leases.
Other types of interests in land may include easements, covenants, and liens, which can give a person certain rights or obligations in relation to the land, such as the right to use a portion of the land or the obligation to pay a debt secured by the land.
What Are Overriding Interests In Land Kenya?
In Kenya, the Land Registration Act provides for certain interests in land that may override the rights of the registered owner, even if they are not registered. These are known as overriding interests and are listed under Section 29 of the Act.
Some examples of overriding interests in Kenyan law include:
- Leases or tenancies for a period of fewer than 7 years – these can be binding on a purchaser of the land even if they are not registered.
- Rights of way or easements – if a person has a right of way over a piece of land, this interest may override the registered owner’s rights.
- Equitable easements or restrictive covenants – these can be binding on a purchaser of the land if they have not been registered.
- Interests of persons in actual occupation – if a person is in actual occupation of the land, their interest may override that of the registered owner, even if it is not registered.
It is important to note that not all interests in the land will be overriding interests. Only those that are specified in the law will have this effect.
