Legal Insights & Updates

Buying Property on a Charged Land in Kenya: How Partial Discharge Protects Your Investment

Many purchasers find themselves in instances where a prospective purchase of land, apartment or office space is the subject of a loan owed by the seller to the Bank. The arrangement usually takes the form of a partial payment to the lender and the balance to the developer in order for the sale to be concluded. However, where the developer defaults in its obligations, the Bank may then opt to exercise its statutory power of sale over its security interest thus leaving the buyer in a difficult position to understand what it means for their purchased interest.