Kenya’s real estate boom has fueled the rise of off-plan property sales, where buyers commit to properties before they are built. This model offers affordability and phased payments but comes with serious legal risks. The involvement of a property lawyer is therefore not optional, but essential.
Common Legal Risks in Off-Plan Transactions
- Developer Insolvency – Some projects collapse mid-way, leaving buyers stranded.
- Missing Regulatory Approvals – Lack of NCA, NEMA, or county approvals can invalidate a project.
- One-Sided Agreements – Sale agreements often favour developers, with vague handover dates and weak penalties.
- Misrepresentation – Units may be marketed with exaggerated features.
- Title Issues – Developers may lack full ownership or have encumbered titles.
Legal Safeguards to Protect Buyers
- Comprehensive Due Diligence
- Verify title deed, charges, and encumbrances.
- Confirm zoning, NEMA approval, and NCA registration.
- Investigate developer’s financial health and past projects.
- Escrow or Project Accounts
- Payments should be tied to construction milestones and released only upon verification.
- Payments should be tied to construction milestones and released only upon verification.
- Robust Sale Agreement
- Must include detailed unit description, penalties for delays, remedies for defects, and dispute resolution clauses.
- Must include detailed unit description, penalties for delays, remedies for defects, and dispute resolution clauses.
- Compliance with Sectional Properties Act, 2020
- For apartments and townhouses, ensure units are registered individually for proper ownership.
- For apartments and townhouses, ensure units are registered individually for proper ownership.
- Licensed Professionals Only
- Work with approved developers, registered agents, and experienced conveyancing lawyers.
The Lawyer’s Key Role
A property lawyer ensures:
- The agreement is balanced and enforceable.
- The developer and project are legally compliant.
- Buyer’s interests are protected against fraud or default.
- Remedies are available in case of disputes or project failure.
How We Can HelpAt Prof. Tom Ojienda & Associates, we understand the complexities surrounding off-plan property transactions in Kenya. From reviewing sale agreements and ensuring compliance with the Companies Act and Land laws, to safeguarding your interests against potential risks such as delays or developer defaults, our team provides comprehensive legal support at every stage of the process. Whether you are an investor, developer, or prospective homeowner, we help you navigate the regulatory landscape with confidence.
Please note that our articles and insights are provided for general information only and do not constitute legal advice. For tailored legal solutions on off-plan property or any other real estate matter, contact our team of professionals at www.proftomojiendaandassociates.com to Stay Ahead of the Game.
