As the process and costs of buying real estate in Kenya can vary by location and property type, this scenario helps explain one of the most popular real estate investment options: a 3-bedroom apartment in Kenya’s central business district. Nairobi.
Buy any real estate in Kenya it is an easy process guided by Kenyan property laws and regulations. Be that as it may, the process will often differ slightly depending on the type of property you wish to purchase and how you intend to finance the property investment. Location is always a factor that can change the process of buying properties in Kenya, since those located in urban settings require additional authorizations and documentation than those located in rural areas.
Being a minefield of inefficiencies and bureaucracy, buying property in Nairobi should be approached with caution and it is important that you are aware of the many loopholes you have to jump through to get your desired property.
Steps that guide the purchase of a 3BR apartment in the Nairobi CBD
1. Hire a real estate agent (5.51% commission)
- An agent will not only help you search and compare the various 3-bedroom apartments available, but also have critical information on where it is best to invest and what rates are charged at various locations within the CBD.
- There is an upper CBD of Nairobi that has exclusive 3-bedroom apartments that are more sophisticated and expensive than those located in the lower parts of the CBD.
- You will have to pay the agent search and display fees of approximately Ksh2,000 and Ksh1,000 respectively.
2. Hire a lawyer (1.5% fee).
- After the agent helps you find the right property, an attorney will guide you through the buying process.
- The solicitor will conduct a title search of the 3-bedroom apartment to ensure it is registered with the Land Registry and Persons Registration Office (cost Ksh500).
- Upon confirmation of ownership, you can go ahead and start the negotiation process.
3.Pay deposit (10-30%)
- Once the terms of sale have been agreed, you will be required to pay a refundable deposit with the remainder due at the end of the transaction.
- If a lender is going to finance part of the property, you must pay the seller’s attorney for the portion that is not financed, while the lender’s attorney or their attorney must provide the seller’s attorney with sufficient professional liability to secure the sum of the portion. financed.
- A stamp duty of Ksh20 is obtained for duly signed sales agreements.
4. The lawyer prepares for the transfer of property.
Your attorney will get:
- From the Nairobi City Council the fee settlement certificate
- From the Land Commissioner the land rent liquidation certificate
- Transfer consent (approximately Ksh7,500).
- From the Land Office a stamp duty, paid with a bank check worth Ksh600
Your attorney will also arrange a property inspection, property appraisal and finally, the record of property transfer.
5. Pay the balance with the seller of the apartment.
- Legal fees and taxes are due 30 days after the transaction is completed.
- From this stage, you are a proud owner of a 3-bedroom apartment in the Nairobi CBD!
- Remember that foreign investors have to pay 30% of gross rental income and 1% annual property tax.
- Additional fees may be incurred, such as survey fees, valuation charges, and utility fees (electricity and water), etc.
