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New Bill seeks to weed out rogue real estate dealers
Rogue real estate agents and brokers may find themselves in trouble if a new bill intended to crack down on their fraudulent activities is passed into law.
It has been established that only 1,500 companies have been registered out of 15,000 operating in the sector, which has caused thousands of Kenyans to be conned in the process of acquiring land or real estate.
The Real Estate Bill 2023 is now ready for its first reading as the Senate resumed after a month-long recess.
The bill seeks to regulate the Sh100 billion real estate market.
The sponsor of the Bill, Trans-Nzoia Senator Allan Chesang, says it’s time the government steps up and weeds out rogue agencies and real estate dealers.
According to Chesang, the market can be regulated by a proper legal framework through the establishment of a real estate board that will have the mandate to license real estate agents and provide advisory services to both national and county governments concerning the regulation of the real estate sector.
The bill proposes that real estate firms be registered by the registrar of real estate and awarded a license by a board of directors under the Act in order to streamline the industry, which is plagued by dishonest traders.
According to the bill, real estate agencies are prohibited from engaging in any unfair business practices, such as making false claims about standards or the quality of the services provided or allowing the publication of any advertisements for goods that are not actually being offered for sale.
The Real Estate Board will be required to advise the national and local governments on the development and regulation of the real estate industry, as well as to oversee real estate agents and real estate projects.
In cases where the real estate project is being developed in phases, each phase is to be treated as a separate real estate project, and the developer must register under the Act for each phase separately.
The bill also proposes that property purchasers are entitled to information about approved plans, layout plans with specifications that have been approved by the appropriate authorities, and any other information that is specified in the Act or the rules and regulations outlined in the agreement.
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