Essential Questions to Ask Before Buying from a Real Estate Developer

The most important questions to ask a developer include: 1) What is your track record with completed projects? 2) Do you have all NCA and county government approvals? 3) Is the land title free of encumbrances? 4) What exactly is included in the purchase price versus hidden costs? and 5) What are the terms of your exit or refund policy if the project stalls?

You can verify a developer's track record by physically visiting their previously completed projects, speaking to current homeowners or tenants in those buildings, checking their registration with the Kenya Property Developers Association (KPDA), and confirming their project status with the National Construction Authority (NCA).

During due diligence, always ask the developer for a certified copy of the title deed (to conduct an official land search), approved architectural and structural plans from the county government, the NCA compliance certificate, NEMA (environmental) approvals, and a draft of the sale agreement.

Off-plan payment plans typically require an initial deposit of 10% to 30% upon signing the sale agreement. The remaining balance is paid in installments spread across the construction period (e.g., 12 to 36 months) or financed through an arranged mortgage upon project completion. Always ask the developer if the installments are tied to specific construction milestones.

Hidden costs in Kenyan real estate transactions often include stamp duty (typically 4% in urban areas like Nairobi), legal fees (1% to 2%), valuation fees, utility connection deposits (water and electricity), and the mandatory monthly service charge for maintaining shared amenities like pools, elevators, and security.