Real Estate Agency.
This refers to the doing in connection with the selling, mortgaging, charging, letting or
management of immovable property or of any house, shop or other building. It normally
involves any of the following;
(a) Bringing together, or taking steps to bring together, a prospective vendor, lessor or
lender and a prospective purchaser, lessee or borrower.
(b) Negotiating the terms of sale, mortgage, charge or letting as an intermediary
between or on behalf of either of the principals.
Estate Agents Act Cap 533, Laws of Kenya.
Types of Agency
There are two main types of agency namely general and sole agency as explained below.
Sole Agency; In this case, the estate agent in the contract is the only one allowed to sell
your home during the period stipulated. You will also have to pay that estate agent the
stipulated commission plus VAT, even if you find your own buyer.
General Agency; The agency agreement gives more than one agent the right to market
your property. You will be asked to sign a general agency agreement with each different
agent. In this case, the agent that secures a buyer or tenant for you gets the commission.
Real Estate Agency Process in Kenya.
Selling a home isn’t quite as simple as sticking up a ‘for sale’ sign and waiting for the buyers
to come to you. Below is a quick overview of the various steps involved in selling a
property.
a) Deciding to sell. Consider what is happening in the broader market and what is best
for your particular situation. Also decide if you are better off buying a new home
before or after you sell your current home.
b) Choosing an agent. Your agent will be in charge of advertising, showing and
completing the legal requirements of selling your property, so choose carefully.
c) How you want to sell. You and your agent will work out a plan for listing, showing
and selling your property.
d) Determining your selling price. Your property’s location, size, age and features will
be assessed, as will the current market and area trends.
e) Agreement with your agent. This is a legally binding contract that will detail any
commissions, the estimated sale price, duration of the agreement, advertising costs,
process and type of agency.
f) Advertising and showing your property. This generally involves photographing your
property, drawing up floor plans and writing online ads.
g) Going on the market. Prospective buyers will contact your agent and arrange times
to view your property, or attend your open days.
h) Sale and negotiation. Your agent will auction your property or mediate between you
and buyers to reach a mutually acceptable price. The buyer will then pay a deposit.
i) Under contract. Both seller and buyer’s lawyers and banks will work out the details
of the sale to ensure both parties meet all legal and financial requirements.
j) Settlement day. All going to plan, you’ll relinquish the keys and legal rights to your
property in exchange for the balance of payment from the buyer or their bank.
Congratulations, you have sold your home!
Real Estate Agency Practice in Kenya.
Many times, property buyers fall into the hands of scrupulous individuals purporting to
be real estate agents. It is therefore essential that one confirms the identity of a
particular agent.
In Kenya, Estate Agents are registered by the Estate Agents Act cap 533. The Institution
of Surveyors of Kenya regulates the practice of Estate Agents under the VEMs (Valuers
and Estate Managers) chapter. Once registered, one is given a membership number. To
be sure you are dealing with an honest estate agent, you should make sure you ask him/
her for their registration number and run it through the ISK portal. The benefit of listing
your property or buying property through a registered member of ISK is that they are
usually held liable for negligence and can lose their membership status if accused of
gross misconduct. The potential buyer or seller can thus rest assured that the registered
agent will not run away with their money (so to speak)