- The Real Estate Regulation Bill 2023 intends to put in place a framework that regulates the operations of real estate agents and the projects they undertake.
Trans Nzoia senator Allan Chesang has sponsored a new bill that seeks to tame fraudulent real estate agents and companies that have been conning Kenyans their hard-earned monies.
The Real Estate Regulation Bill 2023 intends to put in place a framework that regulates the operations of real estate agents and the projects they undertake.
Chesang in the Bill proposes the establishment of a Real Estate Board.
The function of the Board shall be to advise the national and county governments on the regulation and development of the real estate sector.
The board will also regulate real estate agents and real estate projects.
The core mandate of the Board will be the registration of real estate agents, real estate projects, licensing real estate agents, and maintaining a public database with information on real estate agents.
They wil also ensure that real estate projects are registered and maintained in a public database with information on real estate agents and real estate projects.
The management of the Board shall be made up of 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.
A person nominated by the association representing the largest number of real estate agents in Kenya; and the Registrar appointed in accordance with section 15 who shall be an ex officio member of the Board will also form part of the management.
According to the proposed law, the Board may appoint such officers, agents and staff as are necessary for the proper and efficient discharge of the functions of the Board under this Act.
Chesang in the Bill proposes the establishment of a Registrar of Real Estate Agents and Projects.
He or she 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.
He will also receive applications for registration and, with the approval of the Board of Directors, registered real estate agents and real estate projects.
The Registrar may have powers to male the recommendation of the Board of Directors, and suspend or revoke the registration of a real estate agent or real estate project.
He will also perform such other functions as may from time to time be assigned by the Board of Directors.
In the Bill, Chesang wants every real estate agent or company first registered by the registrar of real estate and a license issued by the board of directors under the act.
“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 states
If the Bill sails through, real estate agents will not be able to sell or rent any parcel of land, apartment or building in real estate that is not registered.
For those who defied the law, Chesang proposes a stringent penalty.
The Bill also puts in trouble real estate agents who falsely present the standards of their services, misleading representation concerning the services rendered and allow the publication of advertisements for property not offered for sale.
The Real Estate Board will prescribe standard fees and charges to be levied by real estate agents and developers, ensure compliance with the orders or directions made in the exercise of its powers under the Act and perform such other functions as may be necessary.