‘Send the money, I will handle everything’ , and six months later there is nothing to show. Diaspora clients rarely lose property to strangers; losses come through informal agency arrangements with people they knew.
Why do diaspora buyers lose money to agents?
Because the arrangement was never written down. Money goes to personal accounts, authority to sign or receive documents is assumed rather than granted, and nobody keeps records of what was actually done. Kenyan agency law provides remedies, but proving an unwritten arrangement from abroad is slow and uncertain. Relatives are not automatically agents either: paying a cousin to ‘follow up’ creates expectations on both sides without any of the discipline.
How should an agency agreement be drafted?
The document need not be long; it needs to be specific. A one-page mandate reviewed by a lawyer is worth more than a folder of promises. The following terms earn their place:
- A written mandate stating exactly what the agent may do , search, negotiate, collect documents , and what they may not.
- A prohibition on receiving purchase funds, which should move only through the advocate’s client account.
- Reporting duties: what the agent must send you, how often, with evidence.
- A fixed term, renewed only in writing.
- Express grounds for termination and an accounting of funds and documents on exit.
What can you do when an agent misbehaves?
Act quickly: the longer an unauthorised arrangement runs, the harder it becomes to unwind. Terminate the mandate in writing, demand an accounting, and inform your advocate at once so protective steps can be taken on any pending transaction. Civil remedies for breach of agency duties rest on general contract principles, underpinned by the Law of Contract Act (Cap 23), which can be read on Kenya Law; where theft or forgery may be involved, a criminal complaint is a separate track. Well-drafted agency agreements prevent most of this , our contract lawyers can draft the mandate before the first shilling moves. If a purchase is already under way, our real estate and conveyancing team should take over communication with the seller.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.