As proud as we all are to be Kenyans, we cannot overlook that amongst us are a worryingly growing number of con artists who will mercilessly swindle you down to your last coin.
The real estate industry has not been spared from con artists despite its growth; a growing trend of this is evident in off-plan property buying.
Buying off plan property has been in the past been shied upon as prospective property owners found the process complicated and risky as it involves buying into a new development long before the construction begins. In off plan property buying an investor pays for what is designed on paper in the hopes that it will be actualized on the ground.
The concept of buying off plan property has today grown and is a popular option amongst property buyers in the country but the risk is still rife and Sunset Boulevard estate homeowners in Athi River have witnessed it firsthand.
Sunset Boulevard estate homeowners have received auction notices after the developer allegedly defaulted on paying a loan from I & M bank.
The property valued at 800 million shillings faces auctioning and the current home buyers, who most likely knew nothing about the loan, are at the verge of losing their life savings with some still servicing loans they took up to buy the property. Below are a number of factors to consider before buying an off plan property.
It is a risk
Just like a million other ventures, it is a risk but what is gained without a little bit risk? Don’t go all in without carefully doing your background check.
Ensure all necessary Documentation is availed to you Read through carefully
Before making any kind of commitment, read and revise the letter of offer, the agreement, title documents and if possible, seek insights from a lawyer to understand your rights.
Ignore the salesperson
Ignore the salesperson that’s why they are paid, to sell!
Salespeople are paid to sell and whether they are paid a retainer fee or not, they look forward to a commission which can only get paid if they indeed sell whether the product is worthy is quite irrelevant in that case.
Most letters of agreements have disclaimers on representations. They often state that the agreement was entered into by the buyer without any representation of material facts such that any representations made by salesmen would not be actionable.
Avoid Emotional Manipulation
So what if all your friends are buying? Buy what you need after all it is for you. Avoid succumbing into emotional blackmail with statements like, “these units are hotcake and will be sold out very soon.”
Concentrate on what is on your signed agreement form and whether it is what you need and refuse to succumb to emotional manipulation.
Be alert before that first deposit
During a sale, the representatives insist on the investor paying a deposit after which they are presented with a letter of offer to sign and kick start the process.
Most letters of offer state that the sale agreement supersedes the letter of the offer! The sale agreement could easily alter what you sign up for in the letter of the offer so request to read the sale agreement or any other documents that could supersede it.
Ensure the sale agreement captures features and materials marketed
The sale agreement should be very particular and detailed on the features in the property if there are any materials marketed to entice you to invest, ensure they are also included in the paperwork.