Sn 1 EP 12: SECTIONAL PROPERTIES ACT, 2020 – Everything You Wanted to Know

Sectional Properties Act, 2020 is the law that was enacted for the administration of sectional properties in Kenya. If you intend to buy or own sectional property in Kenya such as an apartment, flat, maisonette or townhouse in a gated development, commercial office or any other property that subsists as a unit within another building or that represents a share or section of a larger property, then it would be ideal to have some basic knowledge before making the purchase. 

In December 2020, the current law passed replacing the Sectional Properties Act 1987. The law was enacted in principle to align the legal administration of sectional properties with the Land Act and Land Registration Act, 2012 and with the Constitution of Kenya, 2010 following the repeal of several land administration laws.

For instance, following the process of devolution, the approvals for sectional properties fell under the purview of the municipalities and local authorities, whereas today, that mandate falls to the country governments. Their registration previously fell under the Registered Land Act which was repealed and replaced by the Land Registration Act of 2012

The Act applies to leasehold properties with unexpired residue terms of not less than 21 years and requires conversion of all long-term sub-leases intended to confer ownership of apartments, flats, maisonettes, townhouses, villas, go-downs or offices to conform to the Sectional Properties Act, 2020 and the Land Registration Act, 2012.

In this episode, Monica Mwangi, an advocate of the High Court of Kenya, and I begin by discussing what sectional properties are, and thereafter understanding the fundamental differences between the two laws (Sectional Properties Act (No. 21 of 2020) and Sectional Properties Act 1987).

We also discuss the changes that the new regime of law makes to the administration of sectional properties and how that affects property investors. One of those changes is that unlike in the past when long-term leases were issued, now, a certificate of title (if the property is freehold) or a certificate of lease (if the property is leasehold) is issued.

We also delve into the motivations behind enacting the new law, underscoring the major changes it makes to address the glaring gaps that were not addressed under the Sectional Properties Act 1987.

It is well worth noting that at the time of its enactment, the Act was widely embraced as a welcome change to the administration of sectional properties because of the protections it offered property investors with units in such buildings.

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Sn 1 EP 12: SECTIONAL PROPERTIES ACT, 2020 – Everything You Wanted to Know

1. Website: https://realestateguru.co.ke/podcasting
2. Spotify: https://spoti.fi/3GTKqBY
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Music: Springtime In The Tropics # 51138859713

Sn 1 Ep 11: Authoritative Guide to Off-Plan Home Purchasing – Insights From The Book, Don’t Buy That House, By Nashon Okowa

Off-plan home purchasing schemes are often the subject of mixed sentiment in the property market in Kenya.

On the one hand, off-plan home purchasing schemes are considered an ideal pathway for home buyers to secure homeownership due to the perceived property discounts, flexible payment plans and other benefits often attached to these schemes. I say “perceived” because that’s the impression that is created. Is this the reality though, or is this just the marketer’s spin?

On the other hand, given the number of these off-plan home purchasing schemes that have failed to deliver on homebuyers’ expectations, those that were ostensibly set up to take advantage of unsuspecting homebuyers and those that may have collapsed without actually delivering homes to investors, it is easy to see that they carry an inordinately high level of risk which one must consider carefully before engaging with the property developers pushing them in the market.

One would imagine that because of the amount of wealth that has been wiped off the books by the collapse of these off-plan home purchasing schemes without any due recourse to investors, more would have been done, say by state agencies that affect policy and regulation in the marketplace, to secure investors’ rights. It would also stand to reason that home buyers in these schemes would take a lot more care in assessing the risk(s) associated with these schemes. 

Sadly, this hasn’t been the case.

Don’t Buy That House, By Nashon Okowa

In his book, Don’t Buy That House, Nashon Okowa makes a case for investors to exercise prudence, caution and tenacity in arriving at the decision to purchase property in off-plan home purchasing schemes. He elaborates in great detail on a methodology that home buyers can use to make a clear-headed, rational assessment of their decision.

In this episode, I provide a review of this book, including my personal sentiments on the subject of investing in property in off-plan home purchasing schemes with a view to helping investors understand some of the pertinent questions they ought to pose whenever they are considering the decision.

We start this episode by initially taking a detour into my journey in this world of podcasting so far, the need for investors to become judicious in their forays into the marketplace before eventually meandering into a discourse about the book. 

By far the most authoritative guide I have found to date on the subject, I urge you, Don’t Buy That House.

At least not until you have read this book.

Then thank me later!

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Sn 1 Ep 11: Authoritative Guide to Off-Plan Home Purchasing – Insights From The Book, Don’t Buy That House, By Nashon Okowa

1. Website: https://realestateguru.co.ke/podcasting
2. Spotify: https://spoti.fi/3GTKqBY
3. Anchor: https://spotifyanchor-web.app.link/e/2oxeRaKffvb
4. AfriPods: https://bit.ly/3UyZg4W
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Music: Springtime In The Tropics # 51138859713

Sn 1 Ep 10: Still Being Scammed Through Property Scams in Kenya in 2023? BLAME YOURSELF

Off the bat, today’s episode is a deep castigation of anyone who is Still Being Scammed Through Property Scams in Kenya in 2023.

They are out here telling the world about how that developer X or land-selling entity Y didn’t keep their promises to “investors”. And, they want you to believe them.

In 2023?

Property Scams in Kenya are a dime-a-dozen.

If that’s you, tell it to the birds. I don’t wish to hear any of it. It’s your fault.

Yes, sorry for the pain you’re experiencing. I refuse to hold your hand and cry with you. You are to blame. You went to do something you had no idea how to do and then somehow, the rest of us are supposed to mourn with you?

No. Don’t call us for that pity party. Cry in your corner because you have refused to learn how to wade through the murk of the Kenyan property market. It’s OK, hold it against me for telling you the truth. In any case, now that you have gone through the loss, I am clearly not your enemy. Unsympathetic, yes. But I don’t know who would be because if it has happened and you did nothing except cry foul, knowing full well that it has happened many times in the past, then all I can say is that you courted that disaster. Now that it has been visited upon you, stop your complaints. You made that bed. Now lie in it!

Property Scams in Kenya are common.

You are just another statistic, one of many. And if you care to look back, even just a mere seven years back, you will see that you are in good company. There are many of you. You chose that fate. I fail to see why you want me to hear all about it!

You may choose to think of me as unfeeling about your plight. In truth, yes, I am.

But, if nothing else, I am offering up to you, in this episode, some insight on how to avoid this fate again someday in future. Take it for what it may be worth. Or not. Again, your choice.

Property Scams in Kenya in 2023: You Only Have Yourself To Blame

I have met many others who were hopelessly enamoured at the prospect of becoming a homeowner and happily plunged into the rock-hard concrete of their dreams before they knew what hit them. They were aware that these schemes are full of risk. Instead of diligently examining their choices, they chose to anchor their decisions in fleeting emotion, herding mentalities and innuendo from social media. Rather than undertaking due diligence before they went ahead to buy that plot, they went with some abstract advice marketing hype generated around these projects. They herded into a bus with the crowd and went to see what was on offer without any due regard to the details.

Now that their title deeds are undelivered, the plots they paid for on the ground with the sweat of their labour are not what they paid for on paper, and that off-plan housing construction project has stalled for more than a year having paid the developer in full, they are busy trooping off to the media houses and complaining to anyone who will listen to their fate, imploring the government to intervene and save them.

Nobody is coming. If this is you, suck it in. Yes, it’s a harsh thing to say. But if that gives you or anyone else thinking about this a much-needed reality check, then so be it.

Let me play Devil’s Advocate. The greedy developer or land seller isn’t the anomaly. In our market, they are a known and constant factor. You are the anomaly. You enable their behaviour and then expect the rest of us to serve up pity? For you? Really?

Property Scams in Kenya take many forms. Let me ask:

• Did you even know what you were supposed to do to at least secure your rights?
• Was the prospect of winning a car if you bought that plot the tipping factor that convinced you that it was a good idea to buy?
• Maybe It was your favourite radio host egging you on who got to you by telling you that the plots were almost finished? No?
• Maybe your drinking buddies convinced you it was a good idea?
• Maybe you saw the fancy video renders, or some grandiose maps with properties marked “sold” or maybe the graphics of that non-existent property?
• Some of you were promised views of the Loldaiga Hills and a golf course which has yet to come and then happily parted with twelve-fifteen times more in value than the thing you were buying was actually worth. You were scammed and you didn’t even know it!

What triggered you and got you sold on the bad idea that caused you to lose your money or regret your choice in the real estate market?

Today, I encourage you to learn where the red flags are before you are caught with your pants down. Before you become the next victim of Property Scams in Kenya, have a listen. This will definitely be instructive for you.

The messenger may be unpalatable, but it’s your duty to do everything you can to make informed choices. And while you may be tempted to quit altogether on account of a past failure, I suggest that you don’t – that you keep going. Don’t let Property Scams in Kenya keep you away from the market.

There is a world of opportunity to do better – make up your losses and even excel. Real estate is worth it!

Support the Podcast:

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Sn 1 Ep 10: Still Being Scammed Through Property Scams in Kenya in 2023? BLAME YOURSELF

1. Website: https://realestateguru.co.ke/podcasting
2. Spotify: https://spoti.fi/3GTKqBY
3. Anchor: https://spotifyanchor-web.app.link/e/2oxeRaKffvb
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Music: Springtime In The Tropics # 51138859713

Sn 1 EP 09: Depressed Markets: How to Sell Faster When The Market has Gone Flat, PART 2

In this episode, we continue the conversation around selling property in a depressed market by offering advice to a client who presented her specific scenario of the challenges she was facing attempting to dispose of her property.

We further demystify the misconception that selling property in a depressed market is solely about price by considering several scenarios to demonstrate the need for sellers to become acutely aware of the market.

Selling a property in a depressed market requires a robust and dynamic approach to positioning property offers as well as understanding the market sufficiently in order to change tack or strategy as the need arises.

Depressed markets require a keener understanding of the market. We take a close look at a scenario that challenged a client who had been attempting to sell her property for more than two years in a depressed market.

Here are some basic issues that require a deeper understanding when attempting to sell property in a depressed market:

• What is the condition of the market?
• Which factors specific to your property work in your favour – neighbourhood, location, amenities and utilities – and how can you leverage the unique selling points of our property to attract prospects?
• Who are your prospective buyers and where can you find them?
• How can you build an avatar of your prospects so that you can position your offer for maximum visibility and effectively target quality leads?
• What factors should influence your pricing decision and how can you use market information to strategically adjust pricing based on your target prospects and the leads you’re generating?
• What basic measures can you take to improve the attractiveness of your offer (perception of value) that don’t just target pricing?
• What is “willing buyer, willing seller” and fair market value? How can an understanding of these basic market principles help you adjust your expectations during the marketing process?
• How can you partner with property agents and other industry professionals to effectively position your offer?

Building clear narratives of the market, understanding the USPs of your property and ensuring you have an adaptable strategy to selling not may help unlock your selling goals faster.

It’s a lot harder to make a sale when supply dramatically outstrips demand. However, it is possible if you are willing to put some “elbow grease” into the endeavour.

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Sn 1 EP 09: Depressed Markets: How to Sell Faster When The Market has Gone Flat, PART 2

1. Website: https://realestateguru.co.ke/podcasting
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