A developer has shown you floor plans for a block in Syokimau, the brochure promises completion in eighteen months, and the payment plan looks manageable. Off-plan purchases suit many buyers, but the legal risks start on the day the first instalment is paid.
What are the risks of buying off-plan?
Off-plan means contracting for a promise: the unit does not yet exist. The recognised risks include delayed completion, departures from the advertised specifications, approvals that were never obtained, developer financial difficulty, and, in weakly documented projects, the same unit being sold to more than one buyer. None of these risks is fatal on its own, but together they make the quality of the paperwork the buyer’s main protection.
What should the sale agreement provide?
- A clear description of the unit, its area and the agreed finishes, supported by drawings.
- A payment schedule tied to construction milestones rather than to calendar dates alone.
- A completion date, and stated remedies if it passes without delivery.
- Confirmation that the developer holds the land and that the project has the required approvals.
- How deposits are held and how the buyer recovers money if the project fails.
How does the Sectional Properties Act, 2020 help?
The Sectional Properties Act, 2020 modernised the ownership of individual units within a building, allowing units to be registered with their own titles together with a share in the common property. Before paying deposits, buyers should confirm that the project is structured so that a unit title can actually issue on completion, since that determines how the unit can later be sold, charged or passed on. The Act is published on Kenya Law.
What practical steps reduce the risk?
Check the developer’s record on completed projects, verify the approvals behind the development, and insist on a properly drafted agreement rather than a marketing-office standard form. Have the agreement reviewed before you pay the deposit: our contract lawyers review off-plan agreements, and our conveyancing team attends to registration once the unit is complete. Keep copies of every receipt and every version of the agreement, since disputes years later are argued through documents.
For guidance on your specific situation, contact CS Advocates LLP, call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.