Real estate firm, Zani Properties, expects to cut prevalent cases of land and property fraud by offering tailor-made advisory services to first time property buyers in Kenya.
According to director Job Kariuki, there have been increased cases of land fraud in Kenya driven by rising demand for land and the desire for home ownership which requires one to be vigilant to safeguard their investment against potential losses.
Kariuki advise that before acquiring a piece of land, one needs to utilize the National Land Management System which integrates all land data on one platform to know the status of the property before making payments.
“Conduct a search to know the true owner of the land, to know whether the land has a restriction such as a caveat, unpaid rates, or a bank charge, to know the exact size of the land as captured in the land records, to know the history of the land, and to know the rent payable to the government, if there is any,” said Kariuki.
For first time buyers, Zani Properties says it is targeting to help one to navigate through the land buying process successfully, by avoiding the common pitfalls.
Currently, Zani is targeting the middle class and civil servants who have interests in properties in various parts of the country including Thika, Matuu, Rongai and Nakuru.
“In Kenya, it is not many people that can afford property worth more than Ksh 500,000. We try to make our properties as affordable as possible, even if that means maintaining small profit margins,” said Robert Karomo, Zani Properties director.
The firm advises first time property buyers to ensure they also use the services of a licensed land surveyor to verify dimensions of the land and confirm the availability of boundaries.
According to Joseph Kamau who is also a director at Zani Properties, once that is established, the next step would be to instruct the services of a reputable agent to give a market estimate of the value of the land, thereby protecting one from possible exploitation from the seller or brokers.
“You should also instruct the services of a conveyancing lawyer in order to receive appropriate legal representation throughout the sales process,” says Kamau.
Kamau says a lawyer can help one to verify documents such as wills, letters of administration of a deceased estate, and letters of allotment. Getting contracts reviewed by an attorney can help to identify if there are any red flags in the contract.
“Engaging the services of a conveyancing lawyer can help to resolve some of the common issues that come up in real estate transactions such as validity of titles, or legality of contracts,” explained Kamau.
Shamton Githere who is also at Zani Properties, “While these services might cost you some money at the beginning, it is a cost worth bearing because it saves you from losing millions of your money to unscrupulous dealers.”
Other due diligence by buyers includes consultations with neighbor before making a purchase then through a lawyer, prepares a letter of offer.
Some letters of offer demand that buyers pay a requisite down payment of at least 10pc of the purchase price immediately on signing it.
Alternatively, the buyer and seller can mutually agree to open an escrow account which their advocates would oversee until completion of the sale.
