Inside New Bill Seeking To Eliminate Quacks In Real Estate
The Bill seeks to eliminate ordeals that have roped in land and housing companies, some of which taken to court and others put under investigation
Marvin Chege 
Kenyans investing in land and real estate could soon breathe a sigh of relief having gone through nightmares with fraudulent real estate agents and companies, if a new bill sponsored by Trans Nzoia Senator Allan Chesang is anything to go by.
The Real Estate Regulation Bill of 2023 seeks to provide for the regulation of the business of negotiating for or otherwise acting in relation to the selling, purchasing or letting of land and buildings; regulation and registration of real estate agents, land companies and developers; establishment of the Real Estate Board; and for connected purposes.
The Bill seeks to eliminate ordeals that have roped in land and housing companies, some of which were taken to court and others put under investigation for allegedly swindling clients of their hard-earned money and destroying their dreams of owning houses, and pieces of land to build homes on.
Trans Nzoia senator, Allan Chesang during a past session. /PARLIAMENT OF KENYA
The proposed Real Estate Board would be required to advise the National and county governments on the regulation and development of the real estate sector, regulate real estate agents and real estate projects, register real estate agents and real estate projects as well as licence real estate agents.
The Board will also be tasked with maintaining a public database with information on real estate agents and real estate projects registered under this Act with such details as may be prescribed.
Furthermore, the Board will also maintain a public database with information on real estate agents and real estate projects whose registration has been denied or revoked with such details as may be prescribed.
Other functions include prescribing standard fees and charges to be levied by real estate agents and developers; ensuring that developers, real estate agents and purchasers comply with the Bill and the rules and regulations made under it; and ensuring compliance with the orders or directions made in exercise of its powers under the proposed Bill.
The management of the Board shall vest in a Board of Directors consisting of a Chairperson appointed by the Cabinet Secretary, the Principal Secretary responsible for matters relating to land or a designated representative and the Principal Secretary responsible for matters relating to housing or a designated representative.
The Principal Secretary responsible for the National Treasury, one man and one woman nominated by the Council of Governors (CoG), a person nominated by the association representing the largest number of purchasers of land in Kenya and one person nominated by the association representing the largest number of developers in Kenya will be part of the Board of Directors.
With the board in place, real estate companies will be required to be registered by the registrar of real estate and license issued by a board of directors under the proposed law.
The companies are furthermore barred from involving themselves in any unfair trade practices, including falsely representing standards, misleading representation concerning the services rendered, and permitting the publication of any advertisement for property that is not intended to be offered.
Under the regulation, anyone who wishes to be registered as a real estate agent shall apply to the Board in the prescribed form and upon payment of the prescribed fee. A person who qualifies to be registered as a real estate agent should be a Kenyan citizen and possess a degree in real estate or equivalent from a university recognised in the country.
“A person shall not practice as a real estate agent unless that person has been issued a practising licence by the Board of Directors and has complied with the requirements of this Act,” the bill read in part.
Chesang proposed that the real estate agents will be required not to facilitate the sale or rent of any parcel of land, apartment, or building in a real estate project which is not registered in accordance with the Bill.
They shall also be required not to be involved in any unfair trade practices, including making any statement, whether orally, in writing or by visible representation, which falsely represents that the services are of a
particular standard or grade; represents that the real estate agent has approval or affiliation which another real estate agent or developer which they do not have; makes a false or misleading representation concerning the services rendered or offered; and permits the publication of any advertisement for property that is not intended to be offered.
The first-time lawmaker also proposed the establishment of a Registrar of Real Estate Agents and Projects who shall be appointed by the Board of Directors through a competitive recruitment process.
The Registrar shall maintain a register of real estate agents and real estate projects, receive applications for registration and, with the approval of the Board of Directors, register real estate agents and real estate projects.
The Registrar may on the recommendation of the Board of Directors, suspend or revoke the registration of a real estate agent or real estate project and perform such other functions as may from time to time be assigned by the Board of Directors.
Chesang further proposes that the Registrar shall establish and maintain an online digital real estate portal to facilitate the registration of real estate agents, facilitate the registration of real estate projects and provide a platform for interaction between real estate agents and developers with the national and county governments, private institutions, investors and other relevant institutions.
The portal will also help provide access to finance, information, innovation and the global market for real estate agents and developers.
“A person who fails to comply with, or contravenes any of the orders or directions of the court issued under this Act commits an offence and shall, upon conviction, be liable to imprisonment for a term not exceeding three years or to a fine not exceeding Ksh10million or to both,” reads part of the bill.
