Auctioned Properties in Kenya: All You Need to Know
Buying auctioned property in Kenya can be a great opportunity to acquire real estate at a lower-than-market value. However, it comes with specific risks and legal considerations. This guide covers everything you need to know:
1. What Is Property Auctioning?
Property auctioning in Kenya involves the public sale of property, typically due to mortgage defaults or unpaid loans. Financial institutions, courts, or private sellers use licensed auctioneers to sell the property and recover debt.
2. Common Reasons for Auctioning Property
- Loan/Mortgage Default: The most common reason; banks auction homes when borrowers default.
- Court Orders: As part of a judgment settlement.
- Unpaid Land Rates or Taxes: County governments may auction land with unpaid dues.
- Business Liquidations: Businesses disposing of property due to insolvency.
3. Where to Find Auctioned Property Listings
- Newspapers: The Daily Nation and The Standard regularly publish auction notices.
- Auctioneers’ Websites: Many auctioneers post listings online.
- Bank Websites: Financial institutions often list foreclosed properties for sale.
- County Government Notices: For land auctions due to unpaid rates.
4. The Auction Process
- Public Notice: A 45-day notice is usually served to the defaulter before auction.
- Advertising: Auction details published at least 14 days before the auction.
- Site Visits: Interested buyers are encouraged to view the property.
- Deposit Requirement: Bidders must place a refundable deposit (usually 10% of the reserve price).
- Auction Day: Bidders compete; the highest bidder wins, subject to terms.
- Payment Completion: Usually within 30 to 90 days after the auction.
5. Legal Considerations
- Title Verification: Conduct a land search to verify ownership and encumbrances.
- Vacant Possession: Some properties are occupied, and eviction may be needed.
- Due Diligence: Engage a lawyer to review documents and advise you.
- Court Injunctions: Check whether any court orders are stopping the sale.
6. Pros of Buying Auctioned Property
- Lower Prices: Potentially 20–30% cheaper than market rates.
- Quick Process: Auctions are typically fast and straightforward.
- Investment Potential: Great for investors looking for distressed assets.
7. Risks and Challenges
- Legal Disputes: Some properties have ongoing ownership or land disputes.
- Hidden Costs: Arrears in rates, legal fees, or possession costs.
- Lack of Access: Viewing might not be possible for occupied properties.
- Non-Refundable Costs: Legal fees, valuation fees, or lost deposits if conditions are not met.
8. Tips for a Successful Purchase
- Attend Multiple Auctions: Understand the process before bidding.
- Do a Land Search: Use the Ministry of Lands e-Citizen portal or visit local lands offices.
- Hire Professionals: Lawyers, valuers, and surveyors can help with due diligence.
- Be Prepared Financially: Secure funds in advance; non-payment may forfeit the deposit.
9. Top Licensed Auctioneers in Kenya
Some well-known auctioneers include:
- Dalali Traders Auctioneers
- Legacy Auctioneering Services
- Keysian Auctioneers
- Garam Investments
Always confirm registration with the Auctioneers Licensing Board.
10. Conclusion
Buying auctioned property in Kenya can be lucrative if approached with caution and proper legal backing. Always do due diligence, consult professionals, and understand the terms of the auction before participating.
