This archive report was first published on 17 October 2019.
Buying a home is one of the largest investments you'll ever make, and it's crucial to approach the process with caution. According to industry experts, many Kenyans have lost money to real estate scams, particularly when dealing with unscrupulous developers or sellers.
Speaking at a recent property event, four real estate players shared their insights on how to avoid being conned when buying a home. Housing Finance Group CEO Robert Kibaara emphasized the importance of verifying the ownership of a property and its documentation before making a decision to buy.
“People need to deal with credible organisations that have been in the market for a long time and you even know some of their projects and have a track record of what they have done,” Kibaara said.
He also warned against being lured by attractive pictures of properties in advertisements, urging buyers to do their due diligence and not be quick to commit.
Nancy Muthoni of The Property Show, which airs on KTN every Sunday evening, advised buyers to use a third-party entity, such as a bank or a credible real estate developer, to send deposits and conduct due diligence on their behalf.
“Find out also about the developer’s last projects, who are living there, who is financing that project, especially if it’s an off-plan project,” Muthoni said.
Alphonse Kaio, Chief Executive Officer of Mwalimu National Sacco, cautioned investors against trusting every property developer or selling firm. “Ask yourself, are those people who are advising you genuine?” he said.
Nelly Mbugua, chairperson of Estate Agents Registration Board, advised buyers to use registered agents and conduct a search on the property to ensure it has no issues or caveats.
“Even if it will cost you Sh50,000, do the search on the map of the land. A map cost you only Sh500. With the search on the property, you will be peaceful knowing that the land has no issues, caveat etc and this is very basic thing to do,” she said.
