The Kenyan dream- to own a home somewhere serene, enjoy a quiet life, and live happily ever after. However, this is often more challenging than it sounds.
As the Kenyan real estate sector continues to grow (7.3% growth in 2023, according to KNBS), more young people are investing in their dream homes. But the process can be quite daunting for first-time home buyers, especially considering the rampant land fraud in Kenya. There’s a need to educate first-time buyers on how to safely buy property in Kenya.
In this blog, we’ll discuss essential steps to take when buying property in Kenya and what considerations you should consider for a hassle-free experience.
Step-by-Step Guide to Buying Property in Kenya
How do you avoid falling prey to land scammers when buying property in Kenya? This simple 3-step process will help you own your dream home without any hassles:
Step 1: Do Your Research and Due Diligence
The excitement of finally owning a home can make you skip this crucial step and be vulnerable to fraudsters. Before you commit to buying a property, it’s important to do your research and due diligence. It’s the first step to protecting your investment or avoiding buyer remorse.
Some of the questions you should ask yourself at this stage include:
- How close will you be to social amenities such as schools, hospitals, recreational facilities, etc
- What kind of property do you have in mind? You can’t build residential property on land designated for agricultural use.
- If you’re working with an agent or broker, are they registered by the Estate Agents Registration Board (EARB)?
- Are there registered titles for the property and who is the title holder?
It’s important to do a site tour of the property before committing to buying. You should also do a land search on Ardhi Sasa portal and have a licensed surveyor to verify the property’s boundaries.
Step 2: Time to Think Financing
At this stage, you’ve identified your property of choice and everything checks out. It’s time for the big question- will you be buying the home out of your pockets or seeking property financing?
Some of the financing options you can explore when buying property in Kenya are:
- Mortgages
- Bank or sacco financing
- Soft loans from friends and family
At Green Heart of Kenya, you can get staggered payment plans of up to 9 months if you’re self-financing. We’ve also partnered with financial institutions such as NCBA and Co-Operative Bank to offer property financing to our clients.
It’s always important to factor in other costs such as legal fees, stamp duty, and land levies into your budget when buying property.
Step 3: Seek Legal Advice
It’s important to involve a competent lawyer for legal guidance when investing in something as big as land in Kenya. They are crucial to ensuring you’re legally covered so you don’t lose your money or home to unscrupulous sellers.
Before signing your land sales agreement, ensure you walk through it with a qualified lawyer so you properly understand what you’re signing up for. A good land sales agreement should contain the following:
- Information about the property you’re buying, including title numbers and coordinates
- The price of the property, including transaction costs and the terms of payment
- Whether the title is freehold or leasehold
- Dispute resolution mechanism
A lawyer will also help you determine whether there are any caveats on the property.
Buy Property in Kenya Hassle-Free and Safely
Buying your first home is an exciting journey, and can be very rewarding with careful planning and due diligence.
At Green Heart of Kenya, we hold your hand throughout the sales process to ensure you can own your dream home hassle-free.