Dispute Resolution in Real Estate and How to Navigate

Boundary disputes and title fraud are common in Kenya’s real estate. Find out how they come about and on how best to prevent and resolve them!

Dispute Resolution In Real Estate
  • Disputes in real estate are not rare, and in Kenya, they pop up in forms as varied as the country’s diverse landscapes.
  • From boundary squabbles to title disputes, the stakes are high, emotions run wild, and solutions require a clear head.
  • A 2020 report from the Kenya Institute for Public Policy Research and Analysis (KIPPRA) noted that boundary disputes account for over 30% of land cases filed in Kenyan courts.

Real estate transactions are like a well-choreographed dance, smooth when everything goes as planned, but awkward when someone steps on a toe. Unfortunately, disputes in real estate are not rare, and in Kenya, they pop up in forms as varied as the country’s diverse landscapes. From boundary squabbles to title disputes, the stakes are high, emotions run wild, and solutions require a clear head.

Let’s dive into some common causes of real estate disputes in Kenya, backed by facts and tips to avoid and resolve them.

How Do Real Estate Disputes Arise?

1. Boundary Battles: Who Owns What?

One of the most common disputes in Kenya revolves around land boundaries. Imagine buying your dream plot, only to find your neighbour claims part of it for their goat shed! Many boundary disputes arise due to:

  • Negligence by property owners who don’t secure proper surveys.
  • Absentee landlords failing to demarcate their property.

A 2020 report from the Kenya Institute for Public Policy Research and Analysis (KIPPRA) noted that boundary disputes account for over 30% of land cases filed in Kenyan courts.

2. Title Deed Troubles: Is It Even Yours?

Fraudulent title deeds are another top source of real estate headaches. Unfortunately, these cases have been on the rise. Unsuspecting buyers often fall victim to scammers who “sell” land they don’t own. In 2023, the Ministry of Lands flagged over 10,000 fake title deeds in Nairobi alone—a stark reminder to verify authenticity during transactions.

3. Joint Ownership Disputes

When multiple people own a property, disagreements are almost inevitable. Whether it’s one party wanting to sell or another refusing to chip in for maintenance, these conflicts often escalate to courtrooms.

4. Breach of Contract

From developers failing to deliver promised housing projects to tenants breaching lease agreements, breaches of contract are widespread. Delayed off-plan housing projects alone leave thousands of Kenyans stranded yearly, unable to recover their investments or move into their homes.

5. Greed

Greed often underpins many real estate disputes, particularly in cases involving family or inherited land. It manifests when individuals attempt to sell communal or ancestral property without the knowledge or consent of other rightful stakeholders, leading to conflicts and legal battles. Similarly, next of kin may make illegal claims on already sold or settled land, disregarding prior agreements or ownership rights to secure personal gain. 

How to Avoid Real Estate Disputes

If prevention is better than cure, let’s look at some surefire ways to dodge the real estate dispute bullet:

  1. Conduct Due Diligence

Before signing on the dotted line, it’s crucial to conduct thorough due diligence to avoid potential property disputes. Start by verifying the title deed with the Ministry of Lands, either in person or through their online portal, to confirm the property’s actual ownership. This step ensures you’re dealing with the rightful owner. 

Additionally, visit the property area and engage with neighbors to uncover any ongoing or past conflicts related to the land. Finally, hire a licensed surveyor to confirm the property boundaries align with what is described in the deed. These measures collectively protect you from fraud and misunderstandings, ensuring a smooth transaction.

  1. Insist on Written Contracts

Oral agreements are the kryptonite of real estate. A clear, signed contract leaves no room for “I thought you said…” arguments. Ensure that you include specific terms, deadlines, and dispute resolution clauses.

  1. Engage Professionals

Always use a lawyer for legal documents and processes. Consult real estate agents familiar with local market conditions to avoid scams.

  1. Stay Involved

If you own property, stay on top of boundary demarcations and renew your title registration to avoid disputes from absentee ownership.

How to Resolve Disputes When They Happen

So, what do you do when you’re already neck-deep in a real estate conflict? Here’s a roadmap:

1. Talk It Out

Sometimes, sitting down with the other party for a frank conversation can resolve things amicably.

2. Mediation and Arbitration

In Kenya, alternative dispute resolution (ADR) methods like mediation or arbitration are gaining traction. They’re faster and cheaper than going to court.

3. Court Action

When all else fails, head to the Environmental and Land Court (ELC). While litigation is expensive and time-consuming, it’s the ultimate path to justice when negotiations fail.

4. Engage a Specialist

Hire a real estate lawyer to represent your interests. They can also negotiate settlements to save time and costs.

Conclusion

Disputes in real estate can be as dramatic as a soap opera, but they don’t have to ruin your dreams. Whether it’s about boundaries, titles, or breached contracts, taking the right preventive steps can save you a world of trouble. And if you do find yourself in a sticky situation, remember: Kenya’s legal framework and ADR mechanisms are there to help you navigate through it.

With a bit of diligence, the right professionals, and some common sense, you can ensure your real estate journey is more “happily ever after” than “legal nightmare.”

Lulu Kiritu
WRITTEN BY
BuyRentKenya
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