Process To Follow For Buying A House in Kenya
Process To Follow For Buying A House in Kenya
Despite the impatience of future owners, a real estate purchase calls for delays that cannot be avoided. The stages of the real estate transaction are at the same time administrative, financial and legal. They can take between one and six months, with an observed average of three months.
Offer to buy, signature of a preliminary contract, obtaining a mortgage, signature of the definitive act: discover the different stages of a real estate purchase.
You have found the house of your dreams. Following this wonderful find, a series of steps for buying real estate property in Kenya awaits you. At first, if the price of the property does not suit you, you have the opportunity to make an offer to buy at a lower price.
A real estate purchase is the dream of many people. You do not feel like a fish in the water facing the different stages of your real estate purchase? Here are some points you need to.
Know the seller of the property
During the process of buying a house in Kenya, it is essential that you know the seller even if you are doing business through lawyers.
Insist on meeting her because some agents will tell you that it is not possible. If the seller may not be able to meet with the buyer, the agent or counsel must be able to disclose all the details of the seller’s data.
Once you have obtained their identity or passport, have them checked with the Registrar of Persons or Immigration. If the seller is a corporation, obtain a copy of their registration certificate and check with the Registrar of Companies.
Get to know your agent/broker
The immediate person you will likely encounter during the process of buying a property in Kenya is a real estate agent or broker. It is good to know who you are dealing with. To do this, ask for the person’s ID card and always make a copy.
It is recommended to take their pictures too. Also, find out if they are registered or not. All registered real estate agents are published in the Gazette. Get a copy of the Kenya Gazette for reference. Also, ask for a copy of their registration certificate.
Please confirm if they are registered with the Registration Commission of Realtors. Find out the location of their offices.
Hire a professional real estate agent
A professional real estate inspector who reviews property and reports on its condition, including structural soundness, compliance with local housing codes, and the state and age of functional systems.
An inspector can also assess the presence of pests, such as termites, and environmental hazards, such as radon or asbestos. Sellers sometimes hire inspectors before selling their homes, and many provinces require sellers to report problems in their homes in advance or respond to legal action later.
It is advisable to ask sellers if they have completed a return or if they have an inspection report that you can consult.
To find a good inspector, ask for recommendations from your friends and a real estate agent. It is recommended to hire an engineer, architect or contractor who is bonded, licensed and insured, and who belongs to a commercial home inspection organization.
Some inspectors offer quotes for replacing or repairing defects in the house, so be sure to ask if these estimates are included in the fees. Ask how the inspector will report to you; it is customary to have a private appointment, plus a written report on its findings.
An unplanned inspection in your offer to purchase may require the seller to make repairs within a certain period of time, or allow you to cancel the transaction if an inspector finds any problems.
Often, both parties obtain estimates for repairs and negotiate concessions, such as advances. When all the terms and conditions of the purchase contract and legalization of a document in Kenya have been met, you can proceed to the details to conclude the contract.
You can do a final pass inspection just before the end of the contract to verify that repairs have been made and that the house is in the same condition as before the start of negotiations.
Once you have identified a land, it is always recommended to visit the land register to search for the land in question. You will need a copy of the seller’s title deed to facilitate the search.
It normally takes three days to get the results from the real owner of the land and if there is a reason to be cautious.
What is the value of the home?
To find out, you can contact an approved expert, real estate agents and notaries obviously have an excellent knowledge of the market and make this estimate for free.
You can also easily carry out a small study of the market: surf a real estate website, log in as an acquirer, enter in the criteria the characteristics of your house (garden, number of rooms, garage, area, other special features such as elevator or pool) and start the search.
The results will provide you with a good idea of the prices whether you are buying house or apartment in Kenya.
Also Read – How To Find Best Real Estate Agent in Kenya?
Be financially prepared
It does not escape, then you have to develop its budget. The budget allows you to establish your ability to pay and to define what kind of house you should shop for.
Future buyers must also remember that they need to dedicate a percentage of the house price to the down payment. Several options are available to those who do not have a big woollen stocking.
They can withdraw money from their banks under the home loan plan. With the tax refunds it generates, they can pay part of the loan and use the rest of the money for their down payment.
The promise of sale
The seller is the only one to commit to the sale of his home. The promise of sale is one of two types of pre-contract possible to sell your home. The other form of pre-contract is the sales agreement.
The promise of sale or the sales agreement is the step that precedes the definitive act of sale. Unlike the sales agreement between the two parties, the promise of sale is binding only on the seller.
After agreement between the buyer and the seller on the sale price of the house in Kenya, the next step in the real estate purchase is to sign a preliminary contract.
This preliminary contract makes it possible to secure the sale and to reserve the property. The preliminary contract may take the form of a sales agreement or a promise to sell.
Following the signing of the pre-contract, the buyer must look for a home loan. Finding a home loan is part of the real estate purchase process that precedes the signing of the final deed.
The compromise, or the promise of sale, very generally provides a suspensive condition for obtaining the loan by the purchaser. This suspensive condition allows the purchaser to cancel the sale if he does not obtain his loan.
After obtaining the mortgage, buyer and seller sign, before notary, the final act of sale.
What happens if the sale does not end?
With the promise of sale, here is what can happen if the sale is not made:
1st case: the seller withdraws from the sale before the buyer has lifted his option:
- The latter recovers the immobilization allowance
- Attention, it can ask the seller compensation for damages (usually 2 times the 10% of immobilization)
- The purchaser must therefore lift the option within the deadlines set in the contract
2nd case: the buyer does not cancel the option within the deadlines set in the contract:
- He may withdraw from the sale but the seller retains the immobilization allowance unless this is due to the non-fulfillment of a suspensive clause (issuance of a loan): in this case, he may recover his insurance immobilization
- The seller is released from the sale and can sell his house to another buyer
3rd case: the seller refuses the sale while the buyer has already lifted the option:
- The buyer recovers his immobilization insurance
- Attention: he is entitled to ask the seller for damages
The land sale agreement in Kenya
The sales agreement is one of two types of pre-contract possible to sell your home. The other form of pre-contract is the promise of sale. the promise of sale or the compromise of sale precedes the definitive act of sale.
Unlike the promise of sale that binds the seller and the purchaser, the sales agreement involves both parties. The sales agreement is a formal contract in which the buyer and the seller make a definite commitment to buy for one and to sell for the other a good at a price fixed by both parties.
The sales agreement launches the sale: then the seller and the buyer benefit from about 3 months to prepare the signing of the definitive act of sale
The signature: in front of the notary or under private seal
The sales agreement, like the promise of sale, can be signed at will:
- Private agreement :
- Between buyer and seller only
- Or in the presence of a real estate agent
- At the notary services Kenya (advised):
- Usually the seller
- Presence possible and advised by the notary of the buyer (the two notaries simply share the fees)
Good to know : the sales agreement is signed in as many copies as there are + 1 signatories to send the registered to the buyer and officially marks the beginning of the withdrawal period.
The buyer pays a deposit of approximately 10% of the selling price
When signing the sales agreement, the buyer pays the seller a deposit in order to reserve the house. Its amount generally ranges from 5 to 10% maximum of the selling price of the house:
- Private signature: the check is signed to the order of the notary who will take care of the definitive act of sale. it is delivered to the notary only at the end of the withdrawal period.
- Signature before the notary: the check is signed to the order of the notary, it is immediately cashed by the notary and deposited in an escrow account, it will not be affected until the final act of sale.
Buying or selling a house is an exciting time and can be managed with ease thanks to the expert of HayerOne that provides you better understanding of the process. If you are planning to buy propert in Kenya then talk to our experts.
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