Due to the current market trends land has escalated to high prices although there is still hope to become an apartment owner.
A simple guide to becoming an apartment owner would be to first check whether the agents who are selling the apartments are registered under the Estates agents Registration Board simply because they exude professionalism and disregard dishonest practices.
The estate agents will then consider the preferences of the client for example the location of the apartment and access to social amenities among others.
One can opt to buy an apartment under a housing scheme or through a private developer who has incorporated a company for the purpose of developing and selling of the apartments.
Due diligence is then conducted by preferably a lawyer to establish the certificate of incorporation is for the duly registered management company and the various directors. Secondly through a search at the land registry to ensure that the chain of ownership of the title is not in dispute. Thirdly if there is any encumbrance on the property and advise accordingly on the implications.
Once the client has settled on a specific apartment in turn the agents of the management company may make an offer in form of a purchase agreement which will set out the terms of the agreement. The management company and the client will then negotiate the specific purchase price and the client’s mode of payment may be agreed mutually. This will be usually accompanied by management property agreement for the common areas.
Further valuation is then done, following payment of stamp duty which is 2% and 4% for rural and urban arears respectively. The completion of the mode of payment takes effect as per the financial arrangement of the client and the management company.
The management company preferably registers the sectional plan of the apartment beforehand so that the certificate of title for the apartment can be issued as soon as completion of payment is done by the new prospective clients.
Once the client becomes the new owner of the apartment the there are several advantages namely:
- Easy loan access by any financial institutions since the certificate of title will act as collateral.
- The owner can have full use of the property and can let the apartment, sell, or even use it as an Airbnb.
- The owner has reversionary interest which simply means that after expiry of the term on the certificate of title they can easily renew it with no stamp duty imposed.
- The new owner will also be liable to loss or liability that is associated with the apartment owned only.
Conclusion
It important to own an apartment which would be your home the advantages are enormous as you can reflect upon.
“Home is where we should feel secure and comfortable”. Catherine Pulsifer
If you would like to purchase an apartment anywhere within and outside Nairobi or incase of any legal queries, please feel free to contact us: rkarago@propertyboutique.co.ke / info@propertyboutique.co.ke
