Loan against Title Deed?

August 28, 2025 by

Collins Mutegi Njagi

How a Title Deed Is Used as Collateral for a Loan:

A title deed proves land ownership and can be used as security to get a loan. If you don’t repay, the lender can sell the land to recover their money.

Step-by-Step Process:

1. Confirm Ownership

The land must be in your name, with no disputes or restrictions unless accepted by the lender.

2. Valuation

A registered valuer assesses the land’s market value. The loan amount is usually 70–80% of this value.

3. Loan Application

Submit the original title deed, your ID, KRA PIN, and other required documents. The bank performs a land search to check for any legal issues.

4. Registering the Charge

If approved, the bank creates a charge document and registers it at the Lands Office. This legally shows the land is tied to the loan.

5. Loan Disbursement

The bank releases the funds. You cannot sell the land during the loan term unless the loan is cleared.

6. Loan Repayment & Discharge

Once fully repaid, the bank gives you a Discharge of Charge. It’s registered to remove the lender’s interest, and your title is returned debt-free.

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Why is Land Survey important?

Land survey is the process of measuring and mapping land to determine its boundaries, size, and features. It is important because it confirms legal ownership, prevents boundary disputes, and ensures accuracy in construction or land development.

When should I get a land survey?

Buying or selling land
Subdividing land
Resolving disputes
Building a home or fence
Applying for a loan against title deed

How much does land survey cost?

The cost depends on several factors such as size of land, location, terrain, type of survey (boundary, topographical, subdivision), and legal requirements. In Kenya, survey fees may also include government levies, registration fees, and stamp duty.

What documents do I need before a survey?

You will typically need: -

Copy of title deed or allotment letter
Land Registry map (RIM)
National ID and KRA Pin
Consent from Land Control Board (for rural property)

How long does survey take?

A basic boundary survey can take a few days, while subdivision and registration processes may take several weeks depending on approvals from lands offices.

Can survey help with land dispute?

Yes, a survey provides official measurements and maps that can be used as evidence in resolving disputes with neighbours in court.

Will I get my documents after the survey?

Yes, depending on the type of survey. For subdivisions, you will receive new mutation forms and updated title deeds. For boundary surveys, you will get a survey plan/map confirming your parcel details.

What is a cadastral survey?

A cadastral survey is a survey that establishes and records property boundaries in relation to the legal land register. It produces official maps and records used for issuing title deeds.

Do land surveys expire?

No, a survey itself does not expire. However, if land is subdivided, amalgamated, or new developments occur, a fresh survey may be required to reflect their changes.

Can I use old survey maps for new developments?

It’s not advisable. Old maps may be outdated due to changes in land laws, infrastructure, or subdivisions. Always request a current survey to avoid boundary or legal issues.

I have a title deed, is a survey really necessary?

Yes. A title deed shows ownership, but a survey confirms the exact location, size, and boundaries of the land. Many disputes occur because titles are not verified with proper surveys.

How do I know if my land has been surveyed?

Existence of survey beacons on the ground.
A survey plan/map from the Ministry of Lands or Survey of Kenya.
A registered survey number linked to your title deed.

What is the difference between freehold and leasehold land?

Freehold land: The owner holds it indefinitely; surveys establish boundaries for title deed registration.
Leasehold land: Ownership is for a set period (e.g., 99 years); surveys are required for allocation, renewal, or subdivision.

What is the difference between a land surveyor and a land valuer?

A land surveyor measures, maps, and defines land boundaries.
A valuer estimates the market value of land or property.

Both services are often needed in land transactions

Can I survey only a portion of my land?

Yes. If you want to subdivide or sell part of your land, a surveyor can measure and map only the portion in question, subject to Land Control Board approval.

What happens if Title Deed is different from actual land size?

Discrepancies can occur due to errors in older maps or encroachment. The surveyor will prepare a report, and you may need to apply for rectification at the Land Registry.

What is amalgamation?

Amalgamation is combining two or more land parcels into a single larger parcel.