DUE DILIGENCE: 5 Things Causing New Land Owners Sleepless Nights
It is a Kenyan dream to own a family home. Some prefer to have it close to the city, or at least close to where they work. Others simply want a home away from the busy city life where they can spend the golden days with peace and serenity. Whether you are in the first or second group, we can all agree that the process of building a home is not easy. It is very costly, time-consuming, and stressful…especially if it is your first time. But even before you start building, identifying a piece of land you wish to build on (if you don’t have one already) and paying for it is another strenuous task. This is why it hurts deeply when after all that effort, you find yourself in the above situation when it rains. We would like to tell you that this is the only problem you could face as a new landowner. But it’s not. There are other legal problems that are just as painful. By the time you are done reading this, you will know the FIVE things causing new landowners sleepless nights and how to avoid them. In our legal profession, we have seen many bad things happen to good, innocent, and hardworking Kenyans who only wanted to acquire a good piece of land to build a home or rental property. This is why we will always insist you do thorough due diligence to avoid losing your money to a fraudulent deal. The case of flooding land is sometimes tricky to assess because it can happen out of natural and unforeseen causes. In most cases, however, the seller fails to disclose this information so they can make the sale. In the due diligence process, there is a clause that requires the land seller to disclose any defect on the piece of land before the final transactions. This is why you should be well-versed in the due diligence process. If you did not get an opportunity to engage with our previous article on due diligence, click here and get informed. As I mentioned earlier, flooding land is NOT the only problem that can make you regret your investment decision as a new landowner. We have five more legal issues that you be cautious of when buying land or any other property. By getting acquainted with this, you will be better than 80% of Kenyan land buyers who are most likely to fall victim to the same. The five legal issues you need to watch out for… INTERESTS This is the most obvious thing to check, but also what many people miss. Some properties contain fines, accumulated land rates, and other arrears that were not settled, which you inherit as the new land owner. In some cases, it may be more than what was paid for when purchasing the property. PROHIBITIONS This is one of the least known laws by the general public regarding land. It’s not always the case that when you buy land, you can do anything you want with it. Some places are designated for commercial purposes, others for agriculture, and most for residential […]
Read more
SMALL CLAIMS COURT IN KENYA
It is unfortunate that something so obvious and direct can be a source of headaches and stress for many. The nature of a business is that one offers their goods or service, and the other person pays the agreed price. But as simple as that sounds, many choose to devise their own rules to the disadvantage of the supplier. If you are an SME owner, you must have been here at least once. Not getting paid on time or at all does not only affect your business but your health as well. The high levels of stress, anxiety, or in extreme cases, depression may end up costing you more than the profits you expect. It is even worse when the survival of your business depends on receiving what you are owed. To add salt to the injury, without good representation, pursuing legal action has been another source of more stress and anxiety. The backlog of cases in courts in Kenya is on a high. Especially without enough money for legal fees needed to have a professional dedicated to your lawsuit. It may be years before you get justice. Years you don’t have. The Small Claims Court is established by the Small Claims Act 2016. It is a subordinate court in the court system structure in Kenya under Article 169 (1) of the Constitution. This was a superb initiative to counter the legal problems SME owners face and the common Mwananchi by extension. The goal is to enhance the ease of doing business in Kenya by reducing the backlog of cases and resolving disputes through simple, inexpensive, and expeditious procedures, thus enhancing access to justice. Jurisdiction of the court Section 12(1) of the Small Claims Court Act provides that the court has jurisdiction to hear civil claims relating to:- a) A contract of sale and supply of goods or services b) A contract relating to money held and received c) Liability in tort d) Compensation for personal injuries e) Set-off and counterclaim under any contract. The Small Claims Court is, however, limited in jurisdiction. Limits which work more to your advantage, that not. One, they can only preside over money matters not exceeding Kenya Shillings One Million (Kshs.1 000,000), excluding interests and costs. These are more likely to consume less time before getting a ruling. Second, as provided by Section 11(2) of the Small Claim Court Act, they have local limits. But thanks to the efforts of the Judiciary Service Commission, in the able hands of Chief justice Martha Koome, we will have one in every county. So far, we have operational courts in counties such as Kajiado, Nyeri, Kiambu, Eldoret, to name but a few. The court is presided by an adjudicator, an advocate of the High Court of Kenya, with at least three years of experience. Reasons to file at the Small Claims Court a) Simplified Court procedures – The court does not follow the civil procedure rules that drag matters longer. b) The filing fees are affordable – New civil or commercial claims range from Kshs. 200 – 1000 depending on the value of the claim. There are […]
Read moreHow do you deal with property fraud?
Welcome to WordPress. This is your first post. Edit or delete it, then start writing!
Read more
