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Trans Nzoia Senator Allan Chesang has proposed a bill that will see fraudulent real estate agents and companies eliminated in the Kenyan market.
The Bill dubbed the Real Estate Regulation Act, 2023, proposes the establishment of the Real Estate Board, which shall, among other functions, advise the national and county governments on the regulation and development of the real estate sector.
The board will also regulate the real estate agents and companies to ensure strict compliance with the existing laws.
Chesang proposes that the board shall have 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 PS 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.
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"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," Chesang proposes in the Bill.
"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."
Chesang in the Bill also proposes the establishment of a Registrar of Real Estate Agents and Projects. The registrar will be appointed by the Board of Directors through a competitive process.
The Senator says the registrar will 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 Bill proposes.
"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."
Chesang also wants every real estate agent or company first registered by the registrar of real estate. He or she will be issued with a licence by the board of directors under the act.
For those who breach registration procedures, Chesang wants heavy punishment applied to them.
“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.
The success of the Bill means that 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.
The Bill also wants strict compliance with the agreement made in the real estate market in cases of sale or purchase failure to which tough consequences shall apply
“If the developer fails to comply or is unable to give possession of the apartment, plot or building, in accordance with the terms of agreement for sale or due to discontinuance of their business as a developer on account of suspension or revocation of his registration under the provisions of this Act or the rules or regulations made thereunder,” the bill reads.
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.
