Property254 by Tulia Real Estate

Author: Peris Gachago

  • Impact of Digitization of Land Records in Kenya

    Impact of Digitization of Land Records in Kenya

    Digitization of Land Records in Kenya.The concept of land digitalization registries in Kenya began with the aim of giving effect to sections 9 and 10 of the land registrations. Section 9 of the land registries mandates the registrar of land to maintain the register and any document required in a secure and reliable format.The government then began the process of digitalization of the land registry. The aim of the exercise was to bring efficiency and transparency to the land sector in Kenya. This marked the commencement of digitalization of 57 land registries which has been maintained since 1895.Recently, President Uhuru Kenyatta and CS Farida Karoney unveiled national land information and management systems. The system will allow Kenyans to carry out land transactions online. This was a commendable step towards full digitalization of the land records in Kenya. Some benefits of land digitalization of land records to landowners and land selling companies include.

          Reduce time taken to process at the Land Registry.

    The national land information platform that was created will help reduce the process of property registration. Additionally, it will also reduce the registration process of the land documents from 7days to 3days and this will be much beneficial to the land buyers. It will create good time management which can be done through texts and messages.

      Enhances Investor Confidence

    The system will enhance investor confidence in that it will be taking so little time and few days to register property. This will also protect the property owners and investors from fraudulent land transactions.

    With the system around, a lot of stakeholders in the real estate sector will be attracted hence increasing the productivity rate in the industry.

      Reduce costs

    A digitalization program has the potential to reduce storage, management, and access costs. The storage costs can be reduced from the point digitalization is introduced to the original pepper records if destroyed after digitalization then this is so the impetus for the program. You should always determine upfront whether the original can legally be destroyed after digitalization. Management and access cost savings can include a reduction in processing records.

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    Reduction in staff time spent on locating the right records particularly for legal and government information. And transport costs.

      Improve business process efficiency, and quality and consistency

    The act of digitization itself will not improve your organization’s business process. However, the introduction of a digitization program provides an opportunity for an organization to consider its business process, improvement of quality, and promotion of consistency.

    Consistent classification, security, and access rules and indexing can be introduced where relevant information may be able to be transmitted within a structured workflow.

        Promote greater staff flexibility and ability to work remotely

    Digitization can help an organization to take advantage of new technologies and allow their staff to access records in any location.

      Digitization records will save your organization money over the long term. It increases efficiency and also protects your records no matter what the situation is. Always modernize your organization to current market standards.

    The key tactic benefit of digitalization is to improve the efficiency of core business processes a benefit that comes through exploitation. It also helps in capturing documents and data at the point of origin or receipt into an organization.

      To conclude on digitization of land administration seek to improve the ease of doing business in Kenya as the world shift to a more transparent in day-to-day land transactions. The cost of transaction and time used will reduce due to the elimination of certain steps from processes at the land registries

    The digitization process will protect investors and property. The straightforward through digitization of land record will make I hard for the overall population to sidestep property charges. Therefore, it is vital to adopt the digitization of land record policy as long as there is the transparency it will improve the quality of land sales and purchase, overall, it will benefit all including the government, the sector, and the buyer.

    Therefore, it is now out that the amendments seek to improve the ease of doing business transactions. Kenya as the world shift towards a more transparent approach in daily business transactions. These amendments are in alignment with the digitization of land. Poor working environment poor staff attitude lack of integration by the department and use of outdated procedures and practices will enhance efficiency inland or the property transactions.

    The new amendments will hopefully see parties embrace technology and conclude contracts virtually making it efficient and easier to carry on business in Kenya.

  • 10 Terms You must Include in Your Lease or Rental Agreement

    10 Terms You must Include in Your Lease or Rental Agreement

    If you are a landlord and have property to rent, it’s important to have a written lease or rental agreement. If you and your tenant have a legal dispute, having a written agreement increases your chances of a favourable outcome. Your lease or rental agreement should include the following items;

    1.     Tenants and occupants information

    2.      Information about the rental property

    3.      Length of the lease

    4.      Rent payments

    5.      Security deposit and other charges

    6.      Rules and policies

    7.      Contact information

    8.      repair and maintenance 

    Tenants and occupants information

    It should be mandatory for anyone over the age of 18 to sign and be listed as a tenant on the lease or rental agreement. So, the tenants are legally obligated to pay their rent and to use the property in accordance with all terms and conditions set forth in the lease. Therefore, if the other tenants fail to pay, you can legally demand their entire rent from one of them, and if any tenant violates an important term of the agreement, you can terminate tenancy for the entire group of tenants.

    Information about the rental property

    Include the full address of the property, including the building and unit number. Also include If there are any specific parking areas. Be sure to include the assigned parking number, for example, if the rental includes it. If the tenants are not be allowed to access certain areas just include it in the agreement.

    Length of the Lease

    There are short-term tenancies (typically on a monthly basis) created by rental agreements that automatically renew until the landlord or tenants end them (depending on the agreement type) While leases create tenancies that expire after a specific period of time (usually a year). Please note the start and end dates regardless of which method you choose.

     Rent payments

    Specify when and how to pay rent, such as via mail to your office, in your contract. To avoid misunderstandings, include specifics such as, acceptable methods of payment (for example, personal check only, bank deposit only), what the late rent fee is (if applicable), how much it is (if applicable), and the grace period (if applicable).

    Security deposits and other charges

    There are several things you should be clear about if you want to avoid some of the most common conflicts between landlords and tenants: what you could use the deposit for (for example, covering any unpaid rent or repairing damage the tenant causes) and what you won’t accept it as payment of last month’s rent. To find out when and how you will refund the deposit and account for any deductions, check your state’s laws on returning security deposits when the tenants vacate the premises.

    Repair and Maintenance Policies

    A clear lease or rental agreement that outlines both the landlord’s and the tenant’s responsibilities for maintenance will help you avoid rent-withholding issues and other problems (especially with security deposits). As a tenant, you are responsible for keeping the rental property clean and you are also responsible for paying for any damage caused by your abuse or negligence. The tenant must notify you if there is a defect or hazard in the rental property, with specifics on how you will handle complaints and repair requests

     Landlord’s Right to Enter Rental Property

    It is important that your lease or rental agreement spells out exactly when the landlord have the legal right to enter the property, such as when making repairs, and how much notice you will give the tenant in advance. As a landlord its always important to give at least a notice of 24 hours before entering into a tenant’s house.

     Rules and Policies

    Do not forget to include any rules or regulations that are so important to you that you’d be willing to kick out a tenant who broke them. It is possible to write other, less important rules in a separate document. These terms and conditions are included in most rental agreements:

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    Illegal activity: As a way to limit your potential liability and to help prevent injury to others and your property, the contract should include a clause prohibiting illegal or disruptive behaviour, such as drug dealing or excessive noise.

    Smoking: If you don’t allow smoking, remember that the ban covers all types of smoking. If you limit smoking, make a list of where and when tenants are allowed to do so.

    Pets: If your rental allows pets, include the following policies: Specify the number of pets a tenant is permitted to have, as well as the types, breeds, and sizes of animals that are permitted. Note whether pets must be leashed outside the unit and whether tenants are responsible for cleaning up pet waste in common areas.

    Contact Information

    Encourage tenants to contact you in writing if they have questions or concerns about certain issues. The use of text messages and instant messaging may be appropriate in some situations, but it is important that you keep an accurate record of all communications with your tenants, which you can print out in the event you need to show a judge. Let your tenants write or give their notice inform of writing.

    Bottom Line

    These clauses in your rental agreement will protect you if your tenant turns out to be someone you don’t want to rent to anymore. Rental agreements make it simple to evict tenants who refuse to leave the premises. If you are a landlord and you need help in writing the Lease or rental agreement leave a comment, we will keep in touch with you.

    Is there  term you think is important? Let us know in the comments section.

    Writing out a landlord-tenant contract can be tedious and time-consuming. While you could use boilerplate language you find on the internet, why take the risk? We can support you to draft  a lease agreement for you or houses you manage. Contact us on 0726982982 and we shall give you a  carefully drafted agreement for free.

  • How To Pay Land Rent on Ardhisasa

    How To Pay Land Rent on Ardhisasa

    • To easily make payments on ardhisasa:
    • ·         Go to ardhisasa.lands.go.ke
    • Register an account to begin transacting. If you are a registered user, simply log into your account and transact.
    • Go to Services on the website
    • Under Land Administration, click on Land Rent
    • Then click on Pay Land Rent
    •  Enter Title Number on the Search section using the following formats: Registration Unit/Registration Section/Parcel Number;
    • For Nairobi Blocks: Nairobi/Block12/345 or Block No/Parcel Number (for example: 12/345)
    • For Mombasa Parcels: Mainland North (or South)/Roman Number/Parcel Number (for example MN/IV/123)
    How to Apply for Transfer of Interest in Land on Ardhisasa
    • For other towns and municipalities: Kiambu/MunicipalityBlock1/234
    • After searching for the parcel, pending payments will be listed
    • Under Actions, click on Pay
    • Choose Payment method (M-Pesa or M-Pesa Express) and follow the instructions given to make the payment.
    • You will received a payment Confirmation message on your phone
    • Click on Confirm to complete the transaction.
    • he payments will reflect on your account instantly!
    •  NOTE: If you have several pending land rent payments, you will be required to pay each one of them separately, since each has a unique invoice number. You will ONLY receive a Clearance Certificate once you have settled all pending payments.
    • Download the Clearance Certificate or Print it directly from the site. 
    •  For a direct link to the original article, click https://lands.go.ke/how-to-pay-land-rent-on-ardhisasa/.
    • You can directly call the ministry of lands for any questions or contact us for support.
  • Advantages and Disadvantages of building new home compared to an Existing home

    Advantages and Disadvantages of building new home compared to an Existing home

    The Advantages and Disadvantages of building a new Home Compared to an Existing Home.

    Investing in a home for your family and your loved ones is the most important task that one is to undertake. The question is, should you buy an existing home or build a new one? Both have advantages and disadvantages so before making a decision, ensure you do good research that will suit your family and you as well.

    We as well need to know the difference between an existing home and building a new home. Building a new home is a home that has never been lived and is just from or on construction while an existing home is a home that has been lived in and was constructed many years back or its a house that has been there from before.

               Some Advantages of Building a New Home Include;

    1.       The first advantage of building a new home is that the property will not require a lot of maintenance when you finally move into it. This will save you cost and you won’t be fixing and doing repairs each and every single day as compared to an existing home given that everything new and of good quality.

    2.       New homes are always in a position of having new and quality things in the market that maybe were not there when the existing home was being made. New cables, latest technology and many more. This also makes the home looks more efficient which translates to a lower utility bill.

    3.       Another financial benefit of building a new home is in case you will want to sell the house; the home will be more appealing and attractive to the clients hence easier to cell.

    4.       Another advantage of building is having customized especially for you and your family you will consider a lot of your likes and dislikes. If you want a new design you will work on it. The best part is the house will have your personal touch.

    Disadvantages of building a new home are;

    1.       New Technology and upgraded fixtured could also mean higher construction costs for you as the features don’t come out cheap. The contractors will need to be paid as well and this will have to be catered for. Always try and look for local suppliers who will help give some discounts on materials that will cut on cost.

    2.       One might also experience limitations when constructing a new home based on your finances. The styles you will want to have will be determined by the money in your pocket.

    3.       Another disadvantage of building a new home is time-consuming. Building a new home will take a lot of time compared to just buying. You will have delays with the materials, bad weather, and more.

    4.       Building a home also comes with expenses before you even start the construction. One you have to purchase land and that cost has to be considered. You have to take your time and walk around because finding land closer to the town or of your preferred location is another task.

    Buying an existing home

    Existing home is a home that was constructed some few years back or a house that was there before.

    Advantages of an existing home are;

    1.       One is that you will choose a home at your favorite location. You have to get available land and make a purchase. If not available then this means you have to settle for the available one which will as well suit your likes and budget too.

    2.       Another advantage is that you will easily find a home that you can easily move into. The house will be ready and fully furnished and ready.

    3.       Having an existing home is less time-consuming, you will use less energy as well.

     Disadvantages are;

    1.       You can get a good house but with the wrong neighborhood or get a good neighborhood with the wrong house. But one should try and be open-minded so that the whole process does not become frustrating to you.

    2.       It will cost you a lot of money to make changes to what you don’t like in the house. Renovating the house will be another expense that will need time, energy, money, commitment and that’s a lot.

    3.       Already existing home could come to some unfixed issues like maybe the house is under governmental land or any other. This should make you ensure that you do a thorough inspection before investing in a property.

    Even though the existing home sales market is doing well, building a new one is still viable. If you want to build a home well if you want to buy well the decision is on your side to consider the best way to make your investments.

    To make choices or a choice between purchase and construction is left to an investor’s hand to plan well. Whichever side you lean on whether new or old, look at important things like affordability, location, and investment opportunities to help you chose what you go for. Ensure that you work with experienced professionals to guide you through the process.

  • Tips for Choosing a proper business name for your real estate company in Kenya

    Tips for Choosing a proper business name for your real estate company in Kenya

    Real estate business is one of the lucrative industry where the assets are more than the liabilities involved. Most of the population in Kenya wants to at least venture into this type of business either for personal occupation or for other purposes. Let’s suppose you are trying to get into real estate for business or rather for profits. If you are about to enter into this type of business, then the type of name you choose for your company is one of the critical things to do. Let us review the few things that could help you choose a proper business name for your real estate company in Kenya.

    Impression

    When it comes to choosing a proper business name for your real estate company, first, you should note that the name comes with impression. For clients, how they read out the name is what that fills up their minds. Impression at first sight is what they are likely to go for. This impression is what attracts prospective clients and through this it can promote your brand as well as boost your business between you and your competitors. A proper business name in real estate can therefore help in competitive advantage.

    Criteria of naming a business

    There are so many criteria of naming a business. The easiest of it all is approaching a name consultant. With your description in your mind or written down, name consultants can help you acquire a unique yet a catchy business name. In Kenya, such name consultants are likely to go with the name business consultants. Alternatively, you could also be creative enough to choose a great name for your real estate company. You will be required to create a catchy, unique, relevant name to the industry but in the most simplistic way. Not as easy as it sounded at first, yeah? But that is how a proper business name with a competitive advantage should sound like. Another way of thinking through the business name in real estate business in Kenya would be brainstorming the whole idea. Think through the relevance to the industry, what unique you need to provide towards the industry and any gap associated.

    Again, look at your business vision, mission and goals. These can easily create a catchy business name for you. They give you direction to what you should settle on. You could also try searching on google and see if there is in any way the name appearing in many searches or either the name is taken. This will help you know how you could name your business to avoid confusion of your services with that of your competitors.

    What to avoid

    Avoid picking a name that is already picked up by someone else. An already operating business maybe trademarked and could land you into crime cases. The best thing about this in Kenya is that the registration of business names will let you know if the name is already taken or not.

  • Tips for Selecting a Real Estate Agent in Kenya

    Tips for Selecting a Real Estate Agent in Kenya

    Once you have made up your mind on investing in real estate industry, you may need a guide. As easy as it seems to invest in real estate, selection of a good agent is the basic. Buying and selling of property may be easier for a person who has done it before. A person who needs to venture into that business for the first time may need to select a real estate agent to ease the process and for the purposes of introduction to the market. Whether you are buying or selling the property, such agents will help in guiding you over some essentials such as; buying and building a house, the pro and cons of each method, property inspections while at the same time taking you through valuation of properties. Here are some of the few things you need to look out for when selecting a real estate agent in Kenya.

    A knowledgeable real estate agent

    While selecting a real estate agent, it is always advisable to go for the agent who has a vast knowledge on real estate. If you are selling property, selecting an agent who knows the market well would be the best. It may help you have a fair pricing and not lose customers. The same way it may work when buying properties as it helps you reduce chances of overpayments.

    References

    Real estate business is mostly about relationships you create with your clients as well as fellow agents, if you happen to be an agent. When selecting a real estate agent, millionaires.com highlights that it is necessary if an agent had a number of clients that they can refer to, in order to prove of their satisfactory work done before. You may also want to view referencing as a way you ask friends and family of their previous experiences and sometimes may use their agents based on how they worked with them in the process of buying and selling of property

    Terms and conditions of a contract

    If you want to succeed in real estate business, then contracts are a way to go by. Before buying or selling that property,  it is better if you understood how the agent works as well as the agent understanding how you need to work out things on your end. A contract will define on appropriate fees you pay them as well as duration they may be working with you. You get to decide what if the real estate agent is suitable for you.

    Connection

    Choose a real estate agent who has a connection with you. When selecting a real estate agent, chemistry is the key. If you disagree from the start, then the whole business won’t work out. The connection you create with your real estate agent matters. Again, you may want to choose a real estate agent who will work according to your schedule and has a solid plan. Make sure that the real estate agent will be available when you need them. There is nothing that frustrates business than a partner who is not pro active. Your real estate agent should be viewed more as a partner in business.

    Trust

    During the process of searching and getting to select a real estate agent, trust is very key. Interestingly, you can rule this out by how the real estate agent asks you questions and how they answer you back. Trust goes with passion as well as honesty. If the real estate agent shows some elements of red flags, rule out such to avoid complications when it gets to business.

    Conclusion

    As you select your real estate agent, know that there are many real estate agents out there. Each of them is a person based on their own knowledge, skills and personality. They have their own strengths and weaknesses.  Take time to choose your preferred real estate agent. You can also have a look at our recommended real estate agent on our website listing https://www.property254.co.ke/

  • Ultimate guide to buying a house in Kenya

    Ultimate guide to buying a house in Kenya

    Buying a house is one of most people’s largest investment decisions and usually has a big financial outlay. As you make one of the most important financial decisions, knowing what do no and not to do is key. The process of buying a house in Kenya can be challenging more so when buying a house for the first time. Whether you are a foreigner seeking to buy a house in Kenya or a citizen, there are several steps, tasks and regulations you need to be aware of to avoid making an expensive mistake. To ease your anxiety and ensure you are on the right path, we have created a step by step guide to buying a house. Whether you are a seasoned real estate investor or a beginner in real estate, the top 5 factors to consider when buying a house in Kenya are:

    1. 1.      Determine your real estate investment needs.

    2.      Determine the available budget.

    3.      Selecting a real estate agent.

    4.      Analyzing the property market and selecting a house

    5.      Making an Offer, Negotiating and Transfer.

    1. Determine your real estate investment needs

    As you start looking for a house to buy, determine your wants and both current and long-term needs. If you plan to expand your family, you should consider buying a house with an extra room to grow into. For instance, if you are living in a one-bedroom house and plan to expand your family, the best option is to search for not less than a 2-bedroom house. As buying a house is a long-term decision, this helps to ensure you can live in the house for some time before the need to move arises.

    Make a consideration of the amenities that you need the neighborhood to have. Some factors include schools, access to public transport, parking, entertainment spots, shopping malls and your social network. Consider factors like schools if you have or plan to have kids. Ideally, houses should be close to good schools so that the commute for kids is easier. If you drive a car and you are buying a house to live in, then you should only buy a house with a designated parking. If you do not drive, then the house should have ease of access to public transport.

     As you think though your decision, consider the house type that best suits your needs. This could range from apartments, bungalows, villas, townhouses or whether you prefer a single or a multiple dwelling house. Also consider if you prefer to live in a gated neighborhood.

    Itemize all the features that your house should have. This is for both must haves and good to have features. If you have an idea of sizes, itemize these as well. Some features could range from swimming pool, front and backyard, electric fence or the finishing as well. If you need a house with a certain type of roofing, have that itemized as it will make the search faster.

    Once you identify your needs, factor in some flexibility as well because other considerations like price could affect some of the items you have identified. Determine what the property you buy must have and what you can do without while still ensuring that the final house you purchase fits both your needs and wants as closely as possible.

    2. Determine the available budget

    We have now determined our needs and to narrow down our search further, you need to have a look at your finances. How much money do you anticipate spending while buying your house? If you are unsure of the amount you need, you can use a mortgage calculator to determine the price range to operate within. This is one of the available home mortgage calculators to assist you figure out what you can work with as a price point. This will help determine readiness to move ahead with the process of searching for a house. Determining the available funds allow us to assess ability to pay for both upfront and any recurring costs associated with the purchase of the house. Most people buy houses in three ways- either through cash, mortgage or through an off-plan purchase.

    If you are buying on cash, consider if you have all the cash needed or a top up is necessary. Saccos and banks offer unsecured and secured loans which can help bridge the gap between the savings you have and the cost of purchasing the house. If you plan to buy a house in cash, you may also consider liquidating some of your existing investments to ensure you have the full cash amount needed.

    If you are using a bank issued mortgage, its advisable check out several banks offers before settling on a lender. Banks have different offers on amount they can pay for a house with banks offering up to 105% financing on properties for sale. The 5% is meant to cover stamp duty costs payable to the government and other government fees.  Some banks require you to meet certain upfront costs like a down payment while others offer to pay all fees from legal, transfer and stamp duty costs. Banks also differ on loan terms, interest rates and processing fees. You need to ensure that the rates offered are the most advantageous you can find.  

    Other than the purchase price of the property, consider stamp duty costs in Kenya. It is the responsibility of the buyer to pay the stamp duty.

    There are many companies currently offering off plan purchases. The way this works is you make an initial deposit and then make the remaining payments within a given period as construction progresses. This method has the flexibility of getting a house at a relatively affordable price while offering affordability. There are however risks with delayed completion periods and developer integrity that have made this a sub optimal avenue for most first-time home buyers.

    After you buy a property, you will also incur additional costs like moving costs, furniture costs and purchasing new appliances to make your home comfortable. You may also need to make a few renovations on the property. Include these as well in your budget.

    3. Selecting a real estate agent.

    While reading the blog articles like First-Time Homebuyer’s Guide helps, it may not be specific enough for the market you are in.  it is very important to have someone guide you in the process of buying a house. This could be a friend, family member or a real estate agent.  Our recommendation is to have both a real estate agent and a trusted person to work with. if you do not know a real estate agent, you could ask friends and family members for references. An online search also helps but you would then need to do a background check

    When choosing a real estate agent, find someone with the right experience, local knowledge and you can click with. An agent helps to their extensive network and can alert you on even property that have not been advertised yet. A good agent should communicate with you as often as needed.

    Check on the real estate agents negotiating skills. If they are good negotiators, this will be critical in ensuring you are able to get the best deal from the property purchase act as the advocate for you and your interests throughout the process of purchase. An experienced agent helps you prepare the correct paperwork and protects you from minefields that you could encounter if you go it alone. Most agents are conversant with the process of buying and selling a house which leaves you to concentrate on working on the finer aspects of the actual house you need and not the process.

    4. Analysing the Property Market and Selecting a House.

    Now that you have nailed down your budget, house specifications and have an agent, it’s time to start the legwork. The first option would be to use online real estate listing platforms in Kenya to start your property search. On the online listing platform, filter homes that are available for sale within your preferred neighborhood and for a price you can afford. Online platforms help compare prices with other houses within the neighborhood. Review the photos available and see if any of the houses appear within your preferences.

    When reviewing online listings, a description of the house for sale is key. Lok out for description on the number of rooms, bedrooms and bathrooms to know if this meets your needs. Most agent explain other factors within the description like finishing’s, whether in a gated estate or not, parking availability, Wi-Fi and cable internet availability. This description will help you narrow down your options and save you time.

    The real estate agent will support you to identify properties that are not on listing platforms. Most agents have a network they can call or are members of various online platforms for real estate providers.

    When you have time, take a walk or drive within the preferred neighborhood.  Look out for any for sale signs and make enquiries. As you make visits to various houses make reviews on items like space, lighting and finishes on the house. Your agent will support you inspect the house for any defects.  While there are so many unscrupulous agents and conmen, ensure that your real estate agent accompanies you to any property that you want to view. Additionally, do not make any deposits or payment for potential properties before enlisting the services of a conveyancing lawyer. As you make these tours, determine how the neighborhood feels in terms of safety and security. Assess the noise levels as well. Visit the neighbourhood at various times of the day to determine how safe it is and how comfortable you feel at night. Do a morning drive to help you estimate the time needed go get to work to ensure that you can deal with the commute daily. For schools, check when kids are picked and dropped off.  Speaking to neighbors about this really helps.

    When deciding to buy a house, you must take advantage and use both your emotions and trusting your instincts. Use your emotions to make sure you are buying a house that you love. As you will be spending a lot of time in the house, falling in love with the house is advisable. Use your instincts as well. If you feel the house is overpriced, get a professional valuer to give you a better assessment of price.

    5. Making an Offer, Negotiating and Transfer.

    Now that you have viewed several house options and decided on the house to buy, the final step is making an offer to buy.  When making an offer to buy, consider your budget, the original price offered for purchase, agents price advise, valuer price and what you consider to be reasonable and a fair market value of the property.

    Make an offer to the seller and include any conditions that you want included. These conditions include any repairs needed, amount of deposit needed, documents that you need for due diligence and any payment terms that you. The seller will either accept your terms or negotiate on them. This process of offer and counteroffer continues until you either reach a deal or decide to call it quits. Make sure your agent negotiates on your behalf and remember you can always change agents if you feel the real estate agent is not supporting you to make the best deal for you.

    When making any purchase deposits, ensure you have guidance of a lawyer conversant with the conveyancing process in Kenya. This lawyer will support in the due diligence process of property transfer.

     Conclusion

    The process of buying a house to live in can be a daunting task and is not for the faint hearted. However, you have not worked hard to fail at the finishing line. There are many companies in Kenya that offer conveyancing services which makes the process of buying a house easier. Most lawyers understand the conveyancing law and practice in Kenya and you don’t have to worry about this.

    In case you need legal support, go ahead and contact us on 0726982982.

  • Investing in Real Estate: a Guide to Kangundo Road

    Investing in Real Estate: a Guide to Kangundo Road

    “Niko na kaquarter Kangundo Road must be one of the phrases that come up often when friends call out for a chilling time at economical and affordable hotels in town. Many Kenyans would then get motivated to own either a piece of land or a house along this area. What is it about Kangundo Road that attracts real estate investors?

    Location

    Kangundo road is located in Machakos County. The distance from Nairobi to Kangundo road is about 67km depending on which part of Kangundo road you are going into. it is one of the areas that is fast growing.  Consists of areas such as Joska, Kamulu, Malaa, Kantafu and Ruai among other neighboring areas. The area is about 30 minutes to 1-hour drive. This makes it considerable for people working in the city to commute. Lands in these areas are affordable and come with ready title deeds.

    Development

    This area is rated high when it comes to development. In terms of land, it rates higher than the average appreciating value in other parts of the country. It has a higher demand in terms of property-houses and land. It is one of the areas that is suitable for short or long term investment. It is also associated with great infrastructure such as roads. Outering road has been a pillar to this region hence ease the traffic in and out of these towns. The Machakos County Government has also constructed roads, including from Daystar University to Kangundo-Mlolongo interchange and Kenya Meat Commission to Joska. It is also a center for commercial businesses. Banks are also part of these towns and the area is characterized by several retail shops.

    Amenities

    There are several amenities in this area. These include, schools, hospitals, churches, supermarkets among others. The nearest renown hospital is Mama Lucy Hospital. The area has also no dominant community living in it but rather has a mixture of different communities. These areas feel like a city away from the city, that is, you get all you would need from the city at the area without the hustle of coming to Nairobi town thus making it convenience. These amenities come along with modern technology and standards.

    Value of property

    The value of property in Kangundo Road has been on the rise for the past few years. Initially, parcels of land did not have water provision and electricity. At the moment, they are readily available. This makes it easier for construction as well as easier in acquiring the basic needs. Research shows that Kenyans have been looking for some quiet and peaceful areas and the rate of migration from near the city to Kangundo road has been on the rise. The houses/apartments in Kangundo road are less than 3 million making it convenient and easier for young starters to have shelter for their families as it is affordable. The area is also known with great security as the estates have employed security guides to watch over them.

    Bottom Line,

    Kangundo road is one of the attractive places to invest in right now. It has shown potential of appreciating in value of the property and it will neither be going to drop its value soonest. The best time to invest in real estate and especially Kangundo Road is now.

  • Top 5 Reasons Why Real Estate is One of the Best Investments

    Top 5 Reasons Why Real Estate is One of the Best Investments

    There are so many businesses that one can he dodge into when need to start up a business arises. Real estate investment is viewed as one of the investments that you can never go wrong on. It has been existing overtime and it’s one of the businesses with massive profits and huge opportunities if well taken care of. The industry consists of different areas or categories that you can invest on, that is; residential category, commercial category, retail category, industrial category and a mixed use of all of the above. Due to these various categories of real estate investments, this creates a niche and various gaps of opportunities. This article is therefore going to help you know why real estate investments is one of the greatest industry that you can invest in. According to the survey by Kenya National Bureau of statistics, it shows that real estate investments rose by 1.2% between 2018 and 2019 financial year. Here are some of the reasons why investing in real estate industry is one of the best ideas.

     High profit margins

    According to Cytonn, this sector has out done other asset sectors. In the last five years, part of this industry such as serviced offices contributing up to 12.3% per annum. Real estate investment generates profits in different ways such as money from rent outs, money from flipping, money from industrial use as well as money from lease. The rate of profits generated in this sector are high end and that is why the whole industry consequently has high capital investments. Cytonn also states that between 2019 and 2020, average rental and commercial yields, marginally rose from 5.0% and 7.5% to 5.2% and 7.8% respectively.

    Acquire wealth

    Investing in real estate can be a means to acquire wealth. The property involved in real estate industry, appreciates in value and is a means of storage of wealth. The property can also be used to acquire loans as they can be attached as security to such loans.

    Guide Investors on inflation

    Real estate investments A very low chance of variance. Inflation erodes the wealth of investors and they’re very keen to protect that. Of the ways in which investors guard their businesses, its by protecting the investment against negative effects of inflation. Real estate investments act as a shield for negative effects of inflation. The value of the assets grows in the same rate of inflation or either at the higher rates.

    Conclusion,

    Real estate investment is one of the ways to accumulate wealth. Investing in this industry, has to be one of the best ways to use the money. It ensures safety to your money, it protects you against inflation as well as having high return of profits. Although it may require huge capital, the returns are equally huge. It is an industry that has been existing, and over the years the value increases.

  • The Ultimate Guide to Buying Property in Kenya

    The Ultimate Guide to Buying Property in Kenya

    The process of buying land or a house in Kenya takes an average of three months although some transactions may take longer while others can be much quicker. The process of finding and buying land can be quite the daunting task and we want to detail it for you. This guide contains the ultimate tips to consider when buying land or houses in Kenya. We shall be providing a step by step process to owning property in Kenya and hope that this will be a checklist and a guide that makes the land buying process less intimidating. 

    As a background. the real estate industry in Kenya is governed by the Estate Agents Act Cap. 533 of the Laws of Kenya. The Act provides for the process of transfer of property and the registration, professional conduct and remuneration of persons who participate in the selling, purchasing or letting of land and buildings.  

    Top five Factors to Consider before Investing in Property.

    Many people invest in real estate because the general trend of property is that it increases in value. As such, your returns are guaranteed over some time. It is important for you to understand these factors before you invest in real estate.

    1. Purpose

    Before purchasing either land or a building, the first factor is to determine why you are making the purchase. For land, consider factors like: – Is it for immediate settlement, immediate construction or for speculation purposes. Are you purchasing for your use or you would like to resell?  The same case applies to purchase of a house. Will it be a house for you to live in or a house that you may want to rent out?

    2. Type

    Once the purpose is determined, you then must consider if you are making a commercial, residential, agricultural or an industrial property.  Commercial properties are generally used as outlets for sale and purchase of goods or services or for use as offices. Commercial properties are usually more expensive than residential property and attract different taxes and this impacts on your budget. For houses, additionally consider whether you need to purchase an apartment, townhouse, bungalow or a house with a separate servant quarter.

    3. Budget

    The budget you have available determines the locations you can afford including the size of either land or building. The budget should be enough to not only cover the purchase price, but sufficient enough to cover taxes, agents commissions and the legal costs of conveyancing.

    4. Location

    Location is usually the biggest determinant of price. If you are purchasing hoping for returns from increased sale price, then you would need to select property in an area that is experiencing or is expected to have a high price appreciation. If you are purchasing a house to live in, then you must consider a location that is easy to commute, is secure, have social amenities and factors like schools and availability of transport.

    5. Property Tenure

    In Kenya, there are two main forms of property tenure. These are free hold and leasehold interest. Freehold property gives the owner absolute ownership of the property and does not attract ground rent. Leasehold property confers to the owner a limited period to own the property which can be extended. As evidence of ownership, the government issues buyers with a Certificate of Title for freehold and a Certificate of lease for leasehold titles as a primary evidence of property ownership. Article 65 of the Kenyan Constitution limits foreigners to holding only leasehold titles for a maximum of 99 years but permits future renewals on condition that the subject property held under that title is economically active and it is not required for public use purposes. Any title that is on freehold that is purchased by a foreigner, a company not wholly owned by Kenyans or property held in trust whose beneficiary is not Kenyan changes to leasehold.

    6. The current condition of the real estate market in Kenya

    Conditions in the property market change from time to time. If you are selling a house, high property prices are a good condition. On the other hand, if the property prices are low, it is a good time to buy and a bad one to sell. Thus, before you invest in some real estate in Kenya, perform some research to find out the prevailing market conditions.

    The Key Steps in the Process of Buying Land in Kenya

    The steps below are the definitive steps to follow when you are finally ready to make a purchase. We have through our experience identified and itemized the steps needed to buy a home or land in Kenya. These steps identify the process followed to buy land which is the same as the process of buying a house in Kenya. Whether you are buying land from an individual or buying land in installments from a company, consider the steps below.

    Step 1. Land Identification

    After you have decided of the size, location, budget, purpose and the property tenure needed, you then need to identify the land or house you need to purchase. Most purchasers start their search online by visiting listing websites. You could also reach out to any reputable real estate agents that you may know. If you know any friends who have purchased real estate property, you may reach out to them for advice and guidance. Once you have been provided or seen proposals that meet your criteria, you then plan to conduct a physical visit to the land or house to confirm the basic details. When you visit the land, you should ask neighbours questions about the seller or history of the land. s well as whether there are disputes over the land. Neighbours are well placed to alert you on any existing boundary issues, family squabbles, if the land has been subject to multiple sales, if the land has been set aside for public utilities or such valuable information.

    At this time, you may want to verify that the agent is authorized to deal with the property if you haven’t met the owner. Such agents will be having an authority to sell letter from the owner. In case its needed, as a buyer, you may make a formal expression of interest/ offer subject to contract detailing a few details like price, terms of payment and advocate details. If the offer is accepted by the seller, then the agent prepares a Letter of Offer (LOO) confirming the salient details of the agreed transaction. This is then signed and acts to formally instruct the legal teams of both parties but is not legally binging until an agreement is in place.

    Step 2: Conduct a search in the land’s registry

    If you are satisfied with the price, location and the other factors identified above, you then request details of the land and details of the owner so that you can conduct a search for the land’s records in the registry at the county office.  The copy of the title will be used to conduct a search of the land at the lands office while the copy of the national identity card will be used to verify the identity of the seller at Registration of Persons Bureau. The search is needed to ascertain ownership, check if the property has any encumbrances and confirm if there are any accrued rates. The cost of these checks will vary from county to county. Search results will help you confirm the current ownership, location, size and any caveats attached to the land. This search process will normally take three days.

    While at the land registry, purchase for a nominal fee a copy of the land map. You will need 2 maps from the ministry of land or a local surveyor. One map is an overview of the land and adjacent plots while the other is drawn to scale.  With the two maps, you then engage a surveyor to verify the dimensions of the land and confirm if the land beacons are there and whether these beacons are correctly placed.

    Step 3: Preparation of offers and price negotiation

    Once you have finished your search and verification process and are satisfied with the search results, you can then engage a lawyer to prepare an offer. The lawyer will then prepare an offer letter detailing the terms of sale. The sale agreement is normally drafted by the seller’s advocate and presented to the buyer’s advocate for review and approval.  Please ensure that all key details discussed orally are included in the contract. The seller might ask you to pay some deposit, but it advisable to wait till you get clearance from the Land Control Board. If a deposit is agreed on, you may then deposit the agreed upon amount to the seller’s advocate’s account.

    Step 4: Clearance for the Land Control Board

    The Land Control Board is comprised of county commissioners and area elders who hold forums to ensure that land transfers in the area are transparent and that the land is clean and not either communal land or subject to a land tussle. Most land boards meet monthly, but an expedited review can always be arranged for an additional cost.

    Once you have been cleared by the LCB, depending on the land tenure regime, the land rates and rent if unpaid will need to be paid so that you can obtain the Clearance Certificates.  Once this is done, you are now free to make the payment for the land you are purchasing and get signed transfer forms from your seller.  

    Upon receipt of the complete documents from the seller, you are obligated, in exchange of the documents, to pay to the seller the entire balance against the land through his advocates to finalize the registration of the documents.

    You should then take these documents alongside the sale agreement document, clearance from LCB, land rates clearance from the county, land search documents, your national ID, KRA Pin, 3 passport photos and the old title deed to the ministry of land.

    Step 5: Transfer of Ownership

    You should use the valuation form to apply for valuation by the government valuer. The Government Valuer will visit the property to ascertain the value of the property for stamp duty assessment after which you then pay this amount to the Kenya Revenue Authority. To pay the stamp duty, you will require both the transferor and transferee PIN. Depending on the value of the property, a Capital Gains Tax may apply.  It is your responsibility to pay the stamp duty.

    Stamp Duty is charged on the property value or the purchase price agreed upon; whichever is higher and is:

    4% for land/property within a municipality

    2% for agricultural land or property outside a municipality

    1% if a property is registered as a company and transfer is by way of shares rather than title Legal fees:

    VAT is payable on the acquisition of trading commercial property. The current prevailing rate is 16% of the purchase price. This is in addition to paying the Stamp Duty.

    Buyers are generally responsible for the cost of registration of titles in their name(s). Once the registration process is complete, the legal ownership of the land will have legally changed hands.

    The certificate of title issued by the Registrar upon registration, or to a purchaser of land upon a Transfer by the seller is taken by all courts a evidence that the person named as the proprietor of the land is the absolute owner.

    Step 6: Post purchase activity

    Each party pays for their own legal fees based on a percentage of the purchase price on a scale stipulated in the Advocates Remuneration Amendment Order, 2014. The law also provides that agents must be paid the agreed service fee/commission if they successfully introduce a buyer to the seller or acquire a property for the buyer. The agent is paid by the party who instructs them; either by the seller who instructs the agent to market their property or the buyer who instructs the agent for a property acquisition. The fee is on a scale capped at a maximum of 3% of the property’s value.

    It is important to follow up after one week and conduct a search to ensure that the property details at the ministry of lands are now showing you as the new owner. Once you confirm the details, you can now consider fencing the land and notifying neighbours of the change in ownership. Fencing will restrict encroachment on the land.

    I hope the above step by step instructions help you in purchasing your next property. In case you have any questions, do not hesitate to reach out to your real estate agent, advocate or let us know. You may also comment below, and other community members will be on hand to offer you their thoughts.