Banks holding thousands of title deeds as collateral for loans have been thrown into a panic after a landmark Supreme Court ruling that handed back to the public a parcel of land that had changed hands several times from the late President Daniel arap Moi since 1989. The country’s apex court in April said not even the passage of over 30 years could stop grabbed public land that had undergone multiple successions in private hands reverting back to the public. The ruling, which also raised the bar on the level of due diligence required from buyers and the need to comply with the land acquisition process, looks set to impact banks holding such title deeds as securities for loans worth billions of shillings. The bench of five judges of the Supreme Court said the land in Mombasa having beenirregularly obtained by Mr Moi meant the former President, now deceased, could not pass any valid title deed to any subsequent buyer and that all other successions that followed were illegal. “Essentially, the Supreme Court is placing the burden of searching the entire history of the land on the buyer,” said Kimani Njane, a corporate and commercial lawyer who is also a…

Real estate is investment sector that has continued to grow both locally and internationally. Locally, its contribution to the country’s GDP has continued to grow for the past two decades, from 10.5% in 2000 to 13.8% in 2016, as perKNBS. The sector has also continued to be shaped by various trends such as infrastructural development, improving client preferences and tastes, a growing population as well as an expanding middle class and the continued entrance of multinational firms who act either as clients or competitors, hence shaping the industry standards. As an investment asset class, real estate has toppled other investment asset classes in terms of returns and risk involved, and as a result, more individuals and institutional investors are shifting their focus on investments to real estate. This is attributable to factors such as: High returns, which as per our research, has averaged at 25.0% per annum over the last five years as compared to traditional investment assets such as stocks and bonds which have generated an average of 14.6% per annum over the same period. Real estate provides investors with investment platform for hedging funds against inflation. Secure tax incentives such as treatment of interest payment on mortgages as…

Five top tips for first-time homebuyers entering the market, it definitely pays to know what is coming. Being uncertain of your budget and not planning can lead to overspending and other major problems down the road. Be aware, be prepared, and keep reading to get ahead of the challenges you will face as a first-time homebuyer. Know thatbuyinga home can be a good investment,but can also be stressful, expensive, and confusing. Smart strategies like working with professional realtors and home inspectors, getting a mortgage pre-approval, and buying in an up-and-coming area can help you stretch every dollar. Here are five Top Tips for First-Time Homebuyers 1. Save, scrimp, and postpone purchases When I was a bank lender, I saw too many people screw up their mortgage pre-approvals with previous major purchases, car loans, and empty savings accounts. If you want to get a new home, you have to make sacrifices and trade-offs before you start house hunting. To begin, you can only make a home purchase if you have set aside money for a down payment. The more money you can put down, the smaller your bank loan will have to be. Typically, your down payment will be 20% of…