The real estate sector in Kenya is a dynamic and essential part of the country’s economy. To ensure that this sector operates efficiently, transparently, and with accountability, the Kenyan Parliament has enacted the Real Estate Regulation Act, 2023. This groundbreaking legislation introduces significant changes to how real estate agents, developers, and projects are managed in Kenya.
In this article, we will delve into the key aspects of the Real Estate Regulation Act, its objectives, the establishment of the Real Estate Board, and the implications it holds for the real estate industry.
Understanding the Real Estate Regulation Act, 2023
The Real Estate Regulation Act, 2023, often referred to as the Real Estate Act, is a comprehensive piece of legislation that seeks to regulate and bring transparency to the business of negotiating, selling, purchasing, or letting land and buildings. It also addresses the regulation and registration of real estate agents, land companies, and developers.
Key difinitions in real estate regulatory act
Objectives of the act
The Real Estate Regulation Act, 2023, is guided by the following objectives
The Real Estate Board
The Act establishes the Real Estate Board, a body corporate with the power to sue and be sued, acquire and dispose of property, enter into contracts, and perform functions conferred by the Act. The Board plays a pivotal role in regulating and developing the real estate sector in Kenya.
Functions of the Board
The Real Estate Board’s functions include:
– Advising national and county governments on real estate sector regulation and development.
– Regulating real estate agents and projects.
– Registering real estate agents and projects.
– Licensing real estate agents.
– Maintaining public databases of registered agents and projects, including denied or revoked registrations.
– Prescribing standard fees and charges for real estate agents and developers.
– Ensuring compliance with the Act and its regulations.
– Enforcing orders or directions issued under the Act.
– Recommending measures to protect the interests of purchasers, streamline project approvals, and address grievances.
Real estate Board Composition
The Board of Directors of the Real Estate Board consists of members appointed by various authorities, including the Cabinet Secretary, Principal Secretaries, Council of County Governors, associations representing purchasers, developers, and real estate agents, and the Registrar.
Tenure and Qualifications
Members of the Board of Directors serve a three-year term, with the possibility of reappointment for one additional term. To qualify for appointment, individuals must be Kenyan citizens with relevant professional qualifications, experience, and a commitment to leadership and integrity.
Remuneration
Members of the Board of Directors receive remuneration, fees, or allowances determined by the Cabinet Secretary in consultation with the Salaries and Remuneration Commission
Conduct of Affairs
The Board of Directors conducts its business in accordance with a schedule provided in the Act, with the flexibility to regulate its own procedures.
Delegation of Powers
The Act allows the Board to delegate its powers or functions to committees, members, officers, employees, or agents as needed for efficient operations
Registrar and Register
The Act establishes the position of Registrar of Real Estate Agents and Projects, responsible for maintaining registers of these entities. The Registrar is appointed through a competitive process and serves a five-year term, with no eligibility for reappointment.
Liabilities
The Act does not absolve the Board from liability for damages resulting from its actions or failures to act. The Board remains responsible for compensating individuals for any injury or damage caused
In Conclusion
The Real Estate Regulation Act, 2023, is a transformative piece of legislation designed to bring accountability, transparency, and ethical standards to Kenya’s real estate sector. With the establishment of the Real Estate Board and the clear definition of roles, responsibilities, and regulations, this Act seeks to protect the interests of all stakeholders while promoting the growth and sustainability of the real estate industry in Kenya. As it becomes fully operational, the Act is expected to have a significant impact on how real estate transactions are conducted and regulated in the country.
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