Kenyan Apartment Buyers to Acquire Title Deeds
President Uhuru Kenyatta approved a law that allows apartment buyers in Kenya to acquire title deeds.
The sectional properties amendment bill,2020 which was approved and signed by President Uhuru Kenyatta will now allow apartment buyers to acquire their own title deeds.
In the past, apartment owners had no title deed as the developers retained the original title even after selling the units.
This is because previously there was no legal mechanism to sub-divide such common properties.
This law will change the game in the Real Estate sector in the following ways:
It will allow individual apartment owners to use their apartment title deeds as collateral if and when they would like to acquire bank loans.
It put an end to fraudulent developers. Many Kenyans have found themselves exposed to fraud when they buy apartments in buildings built on land whose original title is held by money lending institutions.
It will promote affordable housing as apartment owners will be assured of absolute ownership.
Homeowners will also be issued certificates indicating their share in the common property meaning the building will not in any instance be auctioned or sold without their consent.
It will prevent developers from constructing additional buildings after selling some units.
Finally, this would also mean that you can follow the steps in my previous article on "creative ways to own properties". Where I talked about buying several units, one at a time renting the using another unit's rent that you collect from your tenants to pay for another unit.
In conclusion, the developers are now required to register each of the apartment plans for all housing units shown on the plan to correlate not just existing structures but also with the approved building plans.
The apartment plans will be the basis for sectional titles and will ensure that what is registered is not a non-existent structure.
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