The Real Estate Regulation Bill 2023 aims to establish a legal framework and stringent measures to streamline the real estate sector in Kenya. Sponsored by Trans Nzoia Senator Allan Chesang, the proposed law seeks to safeguard investors from unscrupulous agents and provide mechanisms to regulate real estate agents and projects.
One of the key provisions of the bill is to protect purchasers from fraudulent activities by ensuring they have access to the necessary information. Buyers will be entitled to obtain information related to approved plans, layout plans, and specifications approved by authorities. They will also have the right to know the time schedule of completion, including provisions for water, sanitation, electricity, and other amenities and services.
Furthermore, the bill requires investors in the real estate sector to seek registration, licensing, and plan approvals. Real estate agents will need to obtain a practicing license from the Board of Directors and comply with the requirements of the act in order to practice. The establishment of a Real Estate Board is also proposed to advise governments on regulation and development, maintain a public database of agents and projects, and prescribe standard fees and charges for compliance.
The bill also proposes the establishment of a Registrar of Real Estate Agents and Projects. The registrar will maintain a register of agents and projects, handle registration applications, and have the power to suspend or revoke registrations. Additionally, an online digital real estate portal will be established to facilitate registrations, provide access to finance and information, and enable global market opportunities for agents and developers.
Senator Chesang highlights the need for regulation in the real estate sector due to its significant contribution to the Kenyan economy, with an annual turnover of over Sh100 billion. The sector has experienced fraudulent activities in the past, and the current regulatory regime has proven ineffective in addressing these issues.
Title: The Real Estate Regulation Bill 2023: Safeguarding Investors and Streamlining the Sector
Definitions:
– Real estate agents: Individuals or companies involved in the buying, selling, or renting of properties.
– Real estate projects: Development projects involving the construction or renovation of properties.
Sources:
– The Real Estate Regulation Bill 2023