• In this landmark judgement, the Supreme Court confirmed the position that a purchaser is required to widen the scope of due diligence to interrogate the root and foundation of the title issued. Following the Supreme Court decision, it is now clear that no party can insist that they are an innocent purchaser for value, if there is an issue with the root or foundation of the title. The court reasserted the position that the doctrine of a bonafide purchaser cannot seek protection in law, where the title for a piece of property was obtained irregularly.

• In this case, the dispute arose with respect to the ownership of Property Title Number MN/1/6053 situated in Nyali Beach, Mombasa County. The suit property was allocated and thereafter a freehold title issued to the first registered owner, over the said property, by the Commissioner of Lands in 1989. The suit property was subsequently sold to a second purchaser and finally to the Appellant In the ensuing period, the County Government of Mombasa entered the suit property, which was adjacent to the beach, demolished the parameter wall facing the beachfront and flattened the property to the same level of the beach, on the premise that the land was designated as an open space. In arriving at the decision, the Supreme Court indicated that a title deed is not sufficient proof of ownership of a title that has been challenged. The owner of the title deed must go beyond the instrument and show that the acquisition was legal from the beginning.

The post LANDMARK CASE: WHAT IS THE IMPLICATION OF RECENT SUPREME COURT JUDGMENT CURRENT READ ON 21ST APRIL 2023 ON FRAUDULENT LAND ACQUISITION: DINA MANAGEMENT LIMITED –VS- COUNTY GOVERNMENT OF MOMBASA & 5 OTHERS [PETITION 8 (E010) OF 2021] first appeared on Worldwide Properties.

In real estate terms, this is an investigation to confirm facts or details presented for a property under consideration it can also be construed to mean reasonable care and caution exercised by a person who is buying a property to protect themselves against incurring liability.

As a purchaser you need to conduct proper due diligence on the following;

1. The Real Estate Agent
2. The Valuer
3. The Surveyor
4. The Lawyer
5. The Seller
6. The Property

The Real Estate Agent

They are regulated by the Estate Agents Act Cap 533 of the Laws of Kenya.

A list of registered agents in good standing is normally in the Kenya Gazette and the Estates Agents Registration Board Website and is updated annually.

You may use the below link for a quick check:

It is prudent to deal with registered and practicing agents as they are regulated by law and have a good grasp of the market.

A good agent should also assist you in getting the other professionals in the property purchase “food chain”.

The Valuer

These are trained professionals and have a wealth of experience in advising or estimating a property’s worth.

They will be able to tell you if the property is worth what the seller is asking for.

Having them by your side will help you in making the much-needed informed decision in property purchase.

Ensure they are licensed by the Valuers Registration Board and are in good standing at the Institution of Surveyors of Kenya.

The Surveyor

Do not leave them behind in your property journey as they will hold your hand and show you the boundaries of your property as recognized in the area survey map or registry index map. They will also advise if there is any anomaly as per the maps.

With the recent introduction of the Sectional Properties Act 2020,  they are the drivers of that agenda that will ensure geo-referencing of sectional properties that will make the owners have their own titles for ease of transactions with their property in the future.

Ensure the surveyor you are dealing with is licensed by the Surveyors Licensing Board and is in good standing with the Institution of Surveyors of Kenya.

The Lawyer

They are the proverbial “thorn in your flesh” but a good problem to have.

They ensure you tick all the legal boxes in your property ownership journey.

They will assist in doing the Official Searches and the Green Card Searches at the Lands Office. They are able to dig deeper to check on the legality of the title and if the same was acquired properly in the past years to date.

They further do a search for the rates and the rents. If the records tally with what you have found on the title search then you are good.  

They assist in the conveyancing process. It should be noted that as a purchaser, you can request your lawyer to open an escrow account where the money for the purchase of the property will be held. The money can then only be released to the purchaser once all parties are satisfied with the transaction.

The Seller

As a purchaser, knowing the seller beyond the marketing glitz is very important. The reputation of the seller should be investigated; in the areas of; – Has he done past sales before? Has been involved in any fraud? Are his past customers happy? Why is he/she selling?

The Property

Visit the property personally or have a very trusted friend or relative visit the property on your behalf.

Visit during extreme weather conditions ( rainy or dry seasons) and avoid visiting during festivities;(Christmas, weddings, funerals, etc.)

Invest a little time befriending the locals; That is, the area chief, shopkeepers, local teachers, and even the village drunkard. They have invaluable information regarding the general area and at times, the particular property that you may never get anywhere else. Remember to be respectful and tactful as you gather information from them.

If unsatisfied at any point in your property purchase journey, you may pull out of the transaction. This may however cause you to lose a percentage of the deposit you had paid. But it is better to be safe than to be sorry.

Remember, Property Purchase has never been an emergency.

Follow us again as we delve into the world of Property in Kenya.

The post Due Diligence Simplified first appeared on Worldwide Properties.

1. Location is Paramount

The old real estate adage, “Location, location, location,” holds true for land investments as well. The location of the land can significantly impact its value and potential uses. Consider factors such as proximity to urban centers, access to transportation and infrastructure, local amenities, and the overall development trends in the area. Land in desirable locations tends to appreciate more quickly and have a wider range of potential uses.

2. Purpose of Investment

Clearly define the purpose of your land investment. Are you planning to develop the land for residential, commercial, agricultural, or recreational purposes? Each type of investment comes with its own set of considerations and potential challenges. For instance, if you’re considering agricultural use, soil quality, water availability, and climate become crucial factors.

3. Zoning and Regulations

Before purchasing land, thoroughly research the local zoning regulations and land use restrictions. Zoning laws determine what type of development is allowed on the land. Understanding these regulations is essential to ensure that your intended use aligns with the legal framework. It’s also important to be aware of any potential changes in zoning laws that could affect your investment in the future.

4. Infrastructure and Accessibility

Access to basic infrastructure such as roads, utilities (water, electricity, sewage, etc.), and internet connectivity is essential for any type of development. Land that lacks proper infrastructure might require significant upfront investments to make it suitable for your intended use. Properties with easy accessibility tend to be more attractive to potential buyers or tenants.

5. Future Development Potential

Research the area’s future development plans and growth projections. Municipal plans, proposed infrastructure projects, and economic trends can provide valuable insights into the potential appreciation of the land’s value over time. Investing in an area poised for growth can lead to substantial returns on your investment.

6. Environmental Considerations

Evaluate any potential environmental challenges that the land might present. Wetlands, flood zones, soil contamination, and other environmental factors can impact the feasibility and cost of development. Conducting environmental assessments and seeking professional advice can help you identify and mitigate these risks.

7. Market Trends and Demand

Study the local and regional real estate market trends. Understanding the supply and demand dynamics for land in the area can help you gauge the potential for price appreciation. Investing in land that aligns with market demand increases the likelihood of a profitable investment.

8. Financial Feasibility

Perform a thorough financial analysis of your land investment. Consider not only the purchase price but also the costs associated with development, maintenance, and ongoing property taxes. Additionally, factor in the potential income or returns you expect from the investment to determine its financial viability.

9. Professional Guidance

Enlist the help of professionals who specialize in real estate and land transactions. A real estate agent, land surveyor, attorney, and financial advisor can provide invaluable insights and guidance throughout the investment process. Their expertise can help you navigate legal complexities, negotiate deals, and make informed decisions.

10. Long-Term Vision

Investing in land often requires a long-term perspective. Land appreciation typically occurs over several years rather than quickly. Having a clear long-term vision and the patience to wait for your investment to mature can be key to realizing substantial gains.

In conclusion, investing in land can offer a myriad of opportunities, but it requires careful research, planning, and consideration of various factors. From location and purpose to regulations and market trends, each aspect plays a crucial role in determining the success of your land investment. By taking the time to thoroughly evaluate these factors and seeking professional guidance, you can position yourself for a successful and rewarding land investment journey.

The post Things to consider when investing in land first appeared on Worldwide Properties.

1. Steady Income Stream

One of the most compelling reasons to invest in real estate is the potential for generating a steady income stream. Residential properties can provide rental income from tenants, while commercial properties offer lease payments from businesses. This consistent cash flow can provide financial stability and supplement your other income sources.

2. Appreciation in Value

Real estate has historically appreciated in value over time. While there are market fluctuations, real estate tends to appreciate in the long term. This appreciation can result in significant capital gains if you decide to sell the property later. Well-chosen properties in high-demand areas often experience substantial value increases.

3. Leverage

Real estate investment allows you to leverage other people’s money to build your portfolio. With a relatively small initial investment (down payment), you can control a much larger asset. This leveraging can amplify your returns if property values increase.

4. Tax Benefits

Real estate investors enjoy various tax advantages. Mortgage interest, property taxes, insurance, and even some property management expenses are tax-deductible. Additionally, you might benefit from depreciation deductions, which can offset your rental income for tax purposes.

5. Diversification of Portfolio

Real estate offers diversification benefits to your investment portfolio. Real estate behaves differently than stocks and bonds, often having a lower correlation to market volatility. Including real estate in your investment mix can help reduce overall risk.

6. Control over Investment

Unlike some other investment types, real estate gives you a significant degree of control. You can influence property value and returns through effective management, improvements, and strategic decisions related to rental rates and tenant selection.

7. Hedge Against Inflation

Real estate investments can act as a hedge against inflation. As the cost of living rises, so do rental rates and property values. Your investment’s value is likely to keep pace with or exceed inflation, preserving your purchasing power.

8. Potential for Passive Income

Investing in rental properties allows you to generate passive income. While managing properties involves some level of effort, you can hire property management companies to handle day-to-day tasks, making it a relatively hands-off income stream.

9. Flexibility in Exit Strategy

Real estate investments provide various exit strategies. You can sell a property when its value appreciates, exchange it for another property, or pass it on to heirs. This flexibility enables you to adapt your investment strategy to your financial goals and market conditions.

10. Tangible Asset

Real estate is a tangible asset, meaning it has intrinsic value and can’t disappear overnight like stocks or other paper assets. This tangibility can provide a sense of security and stability, especially during uncertain economic times.

In conclusion, investing in real estate, whether it’s a home, residential building, or commercial property, offers a multitude of benefits that can help you achieve your financial goals. From generating rental income and capital appreciation to enjoying tax advantages and portfolio diversification, real estate presents a range of opportunities for both seasoned and novice investors. As with any investment, thorough research, due diligence, and a clear investment strategy are essential for success in the real estate market.

The post The Benefits of Investing in Real Estate: Homes, Residential Buildings, and Commercial Properties first appeared on Worldwide Properties.