How to buy auction property in Kenya

Why property ends up at auction

Auction property is usually security for a defaulted loan — land or buildings charged to a bank that is now exercising its statutory power of sale through a licensed auctioneer. The law requires the borrower to be notified and the sale to be properly advertised, which is why you see auction notices in the daily papers.

Due diligence is everything

With property, paperwork risk dwarfs physical risk. Before bidding on anything, invest in proper searches — the cost is trivial next to the price of a disputed title.

• Official land registry search — confirms the registered owner, the bank's charge, and any caveats or cautions
• Physical visit — confirm the parcel on the ground matches the title, check occupation and access
• Rates and rent clearance — county land rates or land rent arrears can follow the property
• Independent valuation — know both open market and forced sale value before setting your bid
• A conveyancing advocate — engage one early, not after you have won

The auction and completion

As with vehicles, you pay a substantial deposit — commonly 25% — at the fall of the hammer and complete the balance within the period in the conditions of sale, often around 90 days for property. Completion involves the bank discharging its charge and transfer being registered in your name. Your advocate should manage this sequence and hold you back from paying outside it.

Occupied properties

Some auction properties are still occupied by the previous owner or tenants. Vacant possession is not always guaranteed — read the conditions of sale carefully and price in the time and legal process of obtaining possession if it is not.

How Asset Link helps

We surface auction and quick-sale property from our network and coordinate the searches and valuations that go with it. Note that lenders will not fund the purchase of an auction property itself — financing is secured against a property you already own, such as a title deed loan.