How to Handle Disputes During a Kenya Property Transaction
Not all Kenya property transactions proceed smoothly from agreement to completion. Title problems emerge. Completion deadlines are missed. New encumbrances appear. The seller gets a better offer. The buyer's financing falls through.
Here is how to handle the most common mid-transaction disputes.
Dispute Type 1: Title Problem Discovered After Signing
You signed a sale agreement. Your advocate's verification discovers a problem — a pending court case, a prior charge that was not disclosed, a root-of-title concern.
Your options:
Withdraw under a condition precedent: If the sale agreement includes a condition precedent that allows withdrawal if verification reveals specified problems, you can exercise it and receive your deposit back.
Negotiate a resolution: Ask the seller to resolve the problem before completion. If the problem is a court case, it needs to be resolved. If it is an undisclosed charge, the seller must discharge it.
Reduce the purchase price: If the problem is manageable but creates some risk, negotiate a price reduction as compensation for the risk.
Proceed with eyes open: If the problem is minor and well-understood, proceed with appropriate adjustments to the agreement.
Never proceed as if the problem does not exist. Closing on a property with a known title problem, hoping it will not materialise, is not a sensible risk.
Dispute Type 2: Seller Refuses to Complete
The completion date arrives. The seller is not ready, or refuses to transfer.
Your response:
Issue a formal completion notice through your advocate, giving the seller a fixed period (typically 5-10 working days) to complete.
If the seller still does not complete: you can treat the contract as terminated for breach, demand return of your deposit, and pursue damages.
Alternatively: apply to the ELC for specific performance — an order requiring the seller to complete.
Do not simply wait indefinitely. The longer you wait without asserting your rights, the harder the claim becomes.
Dispute Type 3: Seller Changes the Terms
After signing, the seller tries to increase the price, change the completion date, or impose new conditions.
Your response:
The signed sale agreement is binding. The seller cannot unilaterally change its terms.
Respond in writing (through your advocate) confirming you are holding the seller to the agreed terms and proceeding to the completion date.
If the seller refuses to complete on the original terms, treat it as a breach and exercise the remedies available (deposit return, damages, specific performance).
Dispute Type 4: New Encumbrance Appears After Signing
After the sale agreement is signed, a monitoring alert fires showing a new charge, caution, or court order on the title.
Your response:
Inform your advocate immediately. Request that the seller resolve the new encumbrance before completion. If the encumbrance cannot be resolved before the completion date, negotiate an extension. If the seller is unable or unwilling to deliver clean title, you have grounds to withdraw and recover your deposit.
Dispute Type 5: The Survey Reveals a Boundary Problem
A field verification or survey reveals the parcel is smaller than expected, the beacons are in wrong positions, or a neighbour has encroached.
Your response:
This depends on the extent of the problem. A minor discrepancy: negotiate a price reduction. A significant discrepancy (parcel materially smaller than represented, neighbour has built on part of the land): these are grounds to withdraw or renegotiate significantly.
The Role of Your Advocate Throughout
Your advocate's role in mid-transaction disputes is central. They write the formal letters, advise on your legal position, negotiate with the other side's advocate, and if necessary, file court proceedings.
This is why having your own advocate — not sharing one with the seller — is so important. A shared advocate cannot properly represent a dispute between the parties.
This article is for general information only. It does not constitute legal advice. Consult a qualified Kenya advocate for advice specific to any dispute in your property transaction.
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