Common property con-games in Kenya and how to get away

1. Title Deed Fraud

Despite the rapid growth of the real estate sector, getting a piece of land with a clean and trouble-free title deed remains a major challenge in Kenya. Indeed, tales of people who have invested huge sums in the sector, only for their property to be brought down by bulldozers, abound. The reasons for this merciless act are almost always that the land was meant for public use, or the buyer was conned. 

How to avoid

Ask the owner to give you a copy of the land’s title deed and use it to conduct a search at the Ministry of Land offices to determine who the real owner is. The search document will indicate in the encumbrance section whether other institutions such as banks also have a claim to the land.  This helps you avoid buying land which the owner has used to acquire a loan, for instance. When conducting the search, take note of the land’s leasehold status. Most land in Kenya is owned under a 99-year leasehold. You avoid land whose lease expires in, say five years. 

Another due diligence process that people might overlook is finding out how much money the county government claims on a piece of land. Some land owners do not pay yearly land rates, thus accruing hefty penalties. Always ensure that you visit county government offices to confirm that the land owner has actually cleared all the rates. Finally, you must get a survey map. Confirming that a specific piece of land actually exists on the area’s survey map is even more important than conducting a title search. This is because while fraudsters easily forge title search results, survey maps are hard to tamper with. 

2. Online Seller Scams

With a proliferation of online marketplaces for real estate, buyers and renters often start their searches for new homes online. Well aware of this trend, scammers will lift an actual listing and re-post it as their own on another site – often with an alluringly low price tag.

How to avoid

To avoid falling victim to these scams, be cautious if you are asked to wire money, if they request a deposit or fees before you’ve signed legal paperwork, if they say they’re out of the country or are unavailable to show you the property for an indefinite amount of time, or if they ask you to give money to a third party on their behalf. You should also find out the developers of the property you see advertised online and contact them to find out of their association with these advertising agencies and online retail sites.

3. Multiple Property Listing

You will see a very lucrative property in your perfect location, with excellent photos, very captivating write up and well within or below your budget. When you send out an inquiry you get a quick response where you need to part with money first to see the property or you are told the owner lives in diaspora. Quite often you’ll be told to make a booking / commitment fee then property becomes yours.

How to Avoid

Insist on seeing the property you want to invest in beforehand, do your due diligence and find out if that is the rightful owner of the property.

4. Housing Cumulative Investment

Many Kenyans want to own their own homes for occupation due to the high cost of living thus falling into the traps of cons who create the illusion of affordable housing. Kenyans invest their hard earned money and save religiously in order to eventually get a house after reaching the said target.

How to avoid

Insist of seeing the property you are investing in and look for people who have genuinely benefited from the project as you do your due diligence. Always involve a lawyer to do the due diligence.

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