The process of buying an apartment in Kenya is exciting but can also be complicated for first timers. Real estate in Kenya is growing with excellent opportunities from smaller apartments to big luxurious residencies. The following is a complete guide on how to purchase an apartment in Kenya. If the buyer is uncertain, engaging the services of professionals like real estate agents, lawyers, and surveyors can lend even more confidence to the process. Here is a step-by-step procedure.
1. Identify Your Needs and Budget.
Start by setting your budget according to what you can afford to spend. Cash savings, proceeds of asset sales, mortgages, or Sacco loans are common financing options. If you are thinking about a loan, get pre-qualified by the lender to see what you’re eligible to borrow.
2. Market Research and Property Search.
Choose the apartment or property you are interested in. This can be accomplished by contacting the developer directly or by hiring a reputable real estate agent like Austine Realtors. After you’ve pinpointed a property, schedule a site visit to ensure it is what you’re looking for.
3. Contact a Lawyer.
Ask for copies of the land title and the seller’s national ID card. You then use the land title to conduct a search at the land’s office to determine ownership, property size, and any registered encumbrances, such as court orders or caveats. Search results usually take 2-3 days. It is vital that you hire a qualified real estate lawyer. They will assist you in understanding the legalities, check on who owns the property, and draw the legal papers.
4. Negotiation and Sale Agreement.
You may choose to negotiate the terms of the sale directly or through your lawyer. A Sale Agreement is entered into, usually involving a 20% deposit or, in some cases, just a deposit with the balance payable on completion. If you’re taking out a mortgage, the financier will help pay this amount off. The agreement must be signed by both parties before the deposit is paid.
5. Transfer and Completion.
It formalizes the change of property rights from the seller to the buyer. This document is signed by both parties involved in transferring the property.
6. Stamping and Registration.
Payments are made to the Kenya Revenue Authority through designated banks for stamp duty and registration fees. Government valuers then value the property to determine the stamp duty, which is between 2% and 4% of the property’s value. After payment, the documents are sent to the lands office for stamping.
7. Final Registration and Search.
The final step in this process is to register the property in the name of the buyer. After registering, search one more time to make sure the transfer has been successful. If any part of the purchase is financed by a lender, the documents are assigned to the financier until the loan is paid in full.
8. Service Charges and Utilities.
After you move into the unit, you are expected to pay service charges for amenities, which consist of security, garbage collection, and water supply, amongst other things. Make sure that all of your utility bills are being directed into your name.
CONCLUSION
Purchasing an apartment in Kenya is a process that demands thought and research, in addition to legal aid. Knowing the process will help you avoid common pitfalls and make a sound investment. Always consult with approved real estate agents, lawyers, and financial institutions for any real estate transaction and to make certain you have lawful ownership of your dream apartment.
