Many Kenyans only rely on obtaining an official search from the ministry of land’s regional registry when doing due diligence prior to purchasing a property. That is not sufficient. More steps are required to be done to verify a title deed's authenticity and the property's legal standing, to protect buyers from fraud. A complete land due diligence in Kenya involves a comprehensive legal,...
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WHAT HAPPENS BEFORE A BANK DECIDES TO AUCTION A PROPERTY IN KENYA? When a borrower of a secured loan defaults in honouring the loan repayments, the banks discuss the issue with them and they can be given a chance to adjust the repayments to lower amounts and the period extended. Banks sometimes give the borrower up to three chances depending on bank policies and the relationship with their...
The affordable housing Sector in Kenya got a boost with the establishment of Kenya Mortgage Refinance Company (KMRC). KMRC offers mortgages at low interest rates through some commercial banks and other financial institutions in Kenya. KMRC mortgages are extended to individuals earning a monthly income of Ksh 200,000 and below. It’s other major condition is that, the mortgage being granted should be...
Stamp Duty is a tax levied on legal instruments such as cheques, receipts, military commissions, marriage licenses, property and land transactions. It is a payable in different rates depending on the nature of the instrument. On real property, stamp duty rates in registries located in rural areas are 2% while those on urban areas are 4% of the property value. it constitutes the biggest amount of money...
The ministry of Lands has embarked on a process of conversion of all parcels of land from the repealed statutes with a view to migrating to the new Land Registration Act 2012, meaning all land titles registered under the previous laws; Indian Transfer of Property Act of 1882, the Government Lands Act (Cap.280), the Registration of Titles Act (Cap.281), the Land Titles Act (Cap.282) and the Registered Land...
Good news for Apartment buyers as the president approved the new law on sectional property ownership. Previously, if the mother title was not put under Caveat by the apartment owners, the developer could easily get a loan and the bank could auction the entire property putting their investments at great risk, as it has happened in recent times. With the new law, there is a title deed for each...
The right time to buy a property largely depends on individual's available disposable income. However, it makes it easy if one takes a mortgage so as to spread the burden over a period of time, which most people prefer instead of depending on savings which may take longer before meeting the required amount. There are a number of costs that one need to pay on top of the deposit commitment. These costs...
Having engaged the various mortgage financiers, their process are the same but the terms of the facility may differ hence one should find out the bank with favourable terms. Banks with seamless and simplified process are the most preferred and we at Kagen Properties always advise our customers so the they do not find themselves in a fix. Below are the steps that a mortgage application goes through. The...
The real estate sector is experiencing a huge growth right now and it is a very lucrative market for people who wish to invest in this sector as the value of Real property will always accelerate with the improvement in infrastructure. Despite the growth, fluctuations in this market is not an uncommon thing, thus a real estate requires a certain level of skill and knowledge to make the correct decisions and...
When buying property in Kenya, it is prudent that the correct process is followed. Most people find themselves entering into transactions with strangers and end up losing huge amounts of money to fraudsters who are usually very smart. It is recommended that one hires the right people including Real Estate Agents, Lawyers, Surveyors or any other party that they trust will give them more confidence in...