Navigating the real estate industry and its deals can be complicated and overbearing if you are not well-versed in the jargon traditionally used by professionals in the industry. A proper understanding of each term can help reduce confusion and ease your decision making when you are in the market to buy a property. It also ensures that the transaction is completely transparent and comprehensible. As one of the best Real estate in Kenya, we’ll decode some common real estate terms that every home buyer should know before embarking on their homeownership journey.
Built-up area
This is the total area available in the property for sale, which includes the usable area or carpet area. It also includes the unusable area, including the area occupied by walls.
Possession date
This is the date when the developer is supposed to hand over an apartment to you after you buy it. Choosing a reliable real estate firm in Kenya ensures on-time delivery and promised quality for your home investment, fostering confidence in your property journey
Occupancy certificate (OC)
This certificate shows that a particular building is ready for occupation, and it meets all the government guidelines.
Maintenance charges
These are fees paid by residents of an apartment complex or housing society to maintain shared areas within the premises, such as elevators and staircases
Clubhouse
A facility within the housing society or complex that may include a gym, swimming pool, and recreational areas. When searching for a home to purchase in Kenya, maximizing the available amenities can enhance the property’s value and contribute positively to your real estate investment, optimizing your potential for a favorable return on investment in the local housing market.
Awali Swimming Pool Common area
These spaces within an apartment complex, such as lobbies and elevators, utilized by all residents within the property.
Stamp duty
This is a fee that the State Government charges when you buy a property. It is guided by the transactional amount and is paid during property registration.
Possession letter
A possession letter is a document that real estate developers provide to a new home owner . The document indicates that the property is ready for occupation and is a form of official handover.
Bank approval letter
Banks issue this letter to prospective homebuyers when a home loan is approved. Centum Real Estate collaborates with various banks to simplify your loan approval process and streamline your path to property ownership. Click on the link here for details on our partnered banks.
Down payment
Also known as a deposit, this is the amount a buyer would need to pay upfront to secure a mortgage or loan on a property. A typical loan amount is around 10-20% of the property’s value.
Occupancy period
This period spans from the possession of a property to the issuance of an occupancy certificate. You can start to live in the said property during this period. However, you may not be the legal owner of the property yet.
Loft Residences Pre-Approval
Before starting your home search, it is advisable to get pre-approved for a mortgage. This involves submitting financial documents to a lender who will then assess your creditworthiness and provide a preliminary loan amount. A pre-approval letter strengthens your offer when you find the perfect home.
Closing Costs
Closing costs are the various fees and expenses associated with finalizing a real estate transaction. These costs can include appraisal fees, title insurance, attorney fees, and more. It is important for buyers to be aware of these expenses and budget accordingly.
Understanding the real estate market becomes much smoother when you are armed with knowledge. By understanding these common real estate terms, you can approach the home-buying process with confidence and make informed decisions. Remember, a knowledgeable buyer is a savvy buyer, and Centum Real Estate is here to guide you every step of the way on your path to homeownership.