Council to act on land rates

Investors in real estate will soon find themselves in trouble if City Hall decides to deal with rate defaulters. People seem to be buying houses and plots disregarding land rates that should be paid annually to local authorities.

Furthermore, the construction boom in Nairobi could be a pointer that private developers have upped their game following increased demand. For instance, a drive in the expansive Eastlands depicts a robust construction of flats while apartments rule in the high-end areas.

However, it has emerged that an increasing number of investors spend millions buying property but overlook paying land rates.

notices

The local authority may soon crack the whip as it is indebted to the tune of Sh25 billion while residents continue to demand better infrastructural services. Therefore, it would be in order for investors in real estate within Nairobi to give Caesar what is rightfully his.

Currently, Nairobi City Council has issued notices and commenced legal action on debtors. Consequently, the civic authority will secure court orders to recover the money through public auctions of properties.

As expected, some defaulters will seek refuge in court to stop City Hall from seizing their property arguing the local authority never issued notices.

According to Town Clerk Philip Kisia, mortgage firms, banks and financiers will not escape their dragnet. Kisia has instructed the lending institutions to the multi-billion shilling sub-sector to ensure their clients have paid land rates where they have extended loans.

certificates

Usually, investors with property within the boundaries of the city assume, ignore or forget their obligation to pay land rates, which pile into huge amounts.

There are also people or companies that buy land who do not confirm whether sellers paid the rates before transferring property to them.

Legally, it is important to obtain a clearance certificate from City Hall to confirm that dues pertaining to the property are settled.

Failure to obtain the certificate means the buyer inherits the accrued debt from the previous owner. Furthermore, the local authority charges interest penalties of at least three per cent and deny defaulters waivers.

However, a prudent conveyancer (property lawyer) will probe whether the seller cleared with the local authority as it is among the overriding prerequisites of property transactions.

It is also important to ensure the property you purchase and the postal address is in the records of City Hall for legal purposes.

Therefore, buyers of property are required to provide information to the chief valuer towards facilitating change of ownership from buyer to seller.

The writer is a lawyer and journalist.