A charge on a title generally means the land or lease has been used as security for an obligation, commonly a loan.
It does not automatically mean the property cannot be sold. It does mean the charge must be dealt with correctly as part of the transaction.
How a charge appears
A charge is a registered interest in the land record.
An official search should reveal registered charges, which is one reason buyers should search the property rather than relying only on the paper title.
The Land Registration Act defines and regulates registration of charges. See the Land Registration Act on Kenya Law.
Can you buy property that is charged to a bank?
Potentially, yes.
The transaction has to account for the lender’s registered interest.
Depending on the arrangement, the seller may need to obtain a discharge or the purchase money may be applied in an agreed manner to clear the secured debt.
The exact mechanics should be handled by the advocates and lender involved.
What should a buyer ask for?
If a charge appears:
- identify the chargee
- confirm the current position of the secured debt
- understand how the charge will be discharged
- make discharge a clear completion requirement where appropriate
- avoid paying the full balance directly to the seller without a documented completion structure
Do not confuse a charge with a caution
A charge is security for an obligation.
A caution is an entry that can prevent specified dealings where someone claims an interest or right.
See caution vs restriction on land in Kenya.
Why this matters before signing
A seller telling you “the loan is almost finished” is not enough.
The registered position should match the transaction documents, and the sale agreement should deal with the charge clearly.
For the wider checks before purchase, use our property due diligence checklist.