ISK Takes a Stand on Real Estate Regulation Bill 2023

Nairobi,

Saturday September 23, 2023

KNA by Venah Onyango/Stephanie Ndunge

The Institution of Surveyors of Kenya (ISK) has taken a resolute stance on the Real Estate Regulation Bill 2023, expressing their views on its potential implications for the real estate industry in Kenya.

The bill, designed to oversee the negotiation, sale, purchase and letting of land and buildings, also introduces regulations for real estate agents, land companies, and developers, along with the establishment of Real Estate Boards.

ISK President, Eric Nyadimo, acknowledges the necessity of regulating real estate developers as a means to restore stability in the property market.

However, he contends that the existing Estate Agents Act, with minor amendments, already offers a robust regulatory framework for estate agents.

“The current Estate Agents Act is all-encompassing, covering all categories of estate agency, rendering an additional regulation redundant,” Nyadimo affirmed.

He said that registered Real Estate Agents fall under the purview of the Estate Agents Registration Board (EARB), as stipulated in the Estate Agents Act Cap 533 of the laws of Kenya.

The legislation mandates the registration of individuals engaged in negotiating for or acting in relation to property transactions on behalf of property owners.

EARB is empowered to handle complaints against registered estate agents, with penalties including the revocation of registration and annual licenses for those found in violation.

“We advocate for the formulation of a dedicated 'Real Estate Developers Bill', focused on regulating developers involved in the construction and subdivision of real estate units for profit,” Nyadimo recommended.

He also called upon the Ministry of Lands to allocate increased funding to bolster the EARB's capacity in curbing unregistered estate agents.

ISK steadfastly opposes the inclusion of its members in the same regulatory framework as developers, emphasizing the fundamental distinction between professionals and profit-driven businesses in the sector.  

Nyadimo stressed that some developers, motivated solely by financial gains, may compromise ethical business practices, contributing to the sector's disorder.

He underscored that while there are many reputable and dependable developers who fulfill their contractual obligations, existing laws can be utilized to address fraudulent activities while a new act targeting rogue developers is crafted.

Nyadimo at the same time urged the public to verify that they are dealing exclusively with registered estate agents to safeguard their interests.

He emphasized the urgent need for the registration and regulation of land trading companies, particularly concerning the subdivision of agriculturally designated land with no prospects for residential use, a move long overdue to protect public interests.

Courtesy; KNA