With the current demolitions going on, how do you avoid losing out on your investment, before making a purchase?

In this blog we will discuss ways in which an investor can avoid some mistakes to ensure a safe investment in the real estate sector.

• Visit the property.

This process is commonly known as ground verification.

Before making any cash transaction ensure you have visited the site and seen the property you wish to purchase. Get familiarized with the surroundings and ask questions if need be, to get clarification of any doubts. 

This process is important as you get to ensure that the land you are buying exists and it is what the seller purports it to be.

• Search Ministry of Lands

To ascertain the true land owner and establish if there is the presence of brokers, should the title have a caveat or has been charged.

Ask to see the title deed to research the land ministry, which should approximately take two hours and cost KES 520.

• Involve the Right Professionals in the Land Buying Process.

The professionals that you will need to deal with to ensure you are not conned while buying land include the following;

1. An advocate of the High Court of Kenya – They come in on the stage of drafting an agreement between the buyer and the seller. To save on costs both the buyer and the seller can opt to use one advocate.
2. Valuer – To help in doing the valuation of the Land for purposes of paying stamp duty.
3. Surveyor -Who will do the ground verification and help in processing the required land maps.
4. Land Control Board -The Land control board is the one who gives the LCB consent which will be needed in transferring the land from the seller to the buyer.

• Dealing with Brokers instead of the Actual Land Owners

To avoid getting conned, it is important to know who the actual owner of the land is, or the company selling it.
The relationship between the seller and the broker doesn’t matter as it’s your investment which is at stake.

• Hurrying the Land Buying Process

Being in hurry to purchase the land that they desire has led to many investors to skip certain key processes in the land buying process, such as:

Making payments directly to the company, instead of an escrow account this makes it easy for some companies to make off with the investors money without remitting the amount to the Land Owner.

And also paying the purchase price in full, without getting the time to perform due diligence of the land.

Under the law, you can pay 10% of the purchase price at the beginning then the rest within 90 days.

• Assuming that sellers from the villages or remote areas cannot be cons.

Majority of Kenyans lower their guard when buying property from the village as they trust their relatives or the elders in the village.

This has always turned disastrous as the majority have been taken advantage of by the same people leading to loss of capital, and no land in sight.

To avoid such occurrences due diligence should be performed and the land buying process should be adhered to.

Steps Finsco Africa Has Taken to Protect our Investors Interests and Capital

1. Legal Compliance by being members of the Kenya National Chamber of Commerce to ascertain our eligibility in the industry, and also we are members of the Association of Real Estate Stakeholders who regulate the real estate sector, to avoid land scams and cons from taking place.
   We also have a licence from the Government of Kenya enabling us to handle business transactions lawfully, whille protecting the interests of our investors.

2. Professional Management we have employed experienced and competent managers in various departments to deal with clients queries in a timely manner, and whenever new situations arise they are always on call to attend to the matter. From the CRM department, Legal Department and

3. Having a physical office at Vishnu Industrial Park, Ruiru, where our clients can come to enquire about our projects and also follow up on the projects that they have bought from us.
   We also have site administrators located at the site for any queries from prospects.
   Our office is open from 08:00 am to 05:00 pm.

4. Providing investors with educational resources and information about the real estate market, potential risks and strategies to ensure they are informed on the current trends in the market. 
5. Transparent Communication and Documenting the progress that takes place in our projects and informing our clients about them, in a timely manner.

By following the legal procedures laid out, acquiring your own piece of land won’t be as challenging as most people encounter.

Get in touch with us through :
☎️ 0711 082 307
Send us an email on: sales@finscoafrica.com