Purchasing land in Kenya has become a daunting affair to most people since many people have been conned while buying land. The majority of the people who have been conned are the ones who have purchased land from Real Estate Companies. Sadly, most of this Real Estate Companies get away with conning people, since most of them have mastered the art of escaping the Law. In this article, I am going to share 10 common mistakes people make while buying land from a Real Estate Company.
1. Failing to do a quick Google/ Social Media Search on the Real Estate Company
Most of this Real Estate Companies that con people are known since most people have complained a lot about them online. This quick online search might just save you your hard earned money.
2. Failing to do an Official Company Search on the Real Estate Company
This helps you know if the company is legally registered and who are the directors of the company.However, many people tend to skip it.
3. Failing to do a search on the Mother Title
This is an important step, even if the Land is to be subdivided, Remember, the success of the subdivision will be dependent on the status of the mother title.
4. Purchasing Land that is yet to be subdivided
This is how a lot of people have lost their money. Ensure subdivision is complete before committing your money.
5. Purchasing property that is not in the name of the Real Estate Company
This is the biggest Red Flag. No matter, the reason given. Run.
6. Failing to do a search on the Lawyers representing the Real Estate Company
Most licensed lawyers will not associate themselves with a fraudulent company. This search might help you sieve out a fraudulent company.
7. Failing to get your own lawyer to represent your interests
Remember, the companies lawyer will focus on the interests of the company it is important, to get your own lawyer to represent your interests.
8. Failing to have a sale agreement first before making payments
Remember, if things go left, this is the document that will help you in recovering your money through court.
9. Paying the Entire purchase price upfront and in cash
There is a reason the law recommends that you pay 10% upfront. Ensure you also pay your money through a form that has paper trail like bank transfer or RTGS.
10. Dealing with brokers
The only people legally with the capacity to make decisions on behalf of the company are the directors. It is important to ensure you are dealing with them directly or through their licensed brokers.
I hope this article has been educational and informative. If you have any questions or need clarification you can check our website: www.ruthtanuiadvocates.co.ke Email: info@ruthtanuiadvocates.co.ke Tel: 0714457082.
