insights
FRACTIONAL AND TIMESHARE OWNERSHIP OF PROPERTY IN KENYA; MAKING LUXURY REAL ESTATE AFFORDABLE
All Insights / By Alakonya Law LLP
FRACTIONAL AND TIMESHARE OWNERSHIP OF PROPERTY IN KENYA; MAKING LUXURY REAL ESTATE AFFORDABLE
Written by: T. Kehonji – 15th February 2024
Fractional and Timeshare home ownership are not just buzz words; they signify the major transformations reshaping the real estate space in Kenya. How? These types of ownership allow multiple persons to have a piece of the pie without buying the whole dream home or high–end real estate properties.
What is Fractional ownership?
This is a form of common ownership that allows a number of people to acquire common but indivisible interest in property; which interest is recognized and protected under the Land Registration Act. This type of ownership has been explored in Aberdare Spa and Safiri Lodge in Nakuru.
What of Timeshare ownership?
This is an arrangement where several parties acquire interest to use a similar property over various periods of time and each timeshare holder is allocated specific times in which they can possess and/or utilize the property. Timeshare ownership has been seen in places like the Baobab Beach Resort, the Amber Villas, Mwembe Suites (all in Malindi) and Ziwa Bush Lodge in Nakuru.
Is there a legislative framework for these types of real estate ownership?
Currently, there is no specific law or regulation that deals with how Fractional or Timeshare Home ownership in Kenya should be handled. Nonetheless, section 30(4) of the Land Registration Act which provides for common ownership of property comes close to allowing parties discretion on how to deal with the Land Title when they hold property in common.
So, how then do parties protect themselves in these types of conveyances?
The parties involved in Fractional and Timeshare ownership ought to follow the process of acquisition of interest in property in Kenya, which involves:
Additionally, parties should be careful to include in the Agreement all foreseeable nuances that would apply to Fractional and Timeshare home ownership, and further outline the specific interest acquired by every investor.
Are there any upsides of these types of home ownership?
In my opinion, these Fractional and Timeshare home ownerships are welcome developments in the real estate space in Kenya, particularly in this era of inclusivity. They are innovative approaches empowering individuals, who would otherwise not be able to afford these high-end properties, to invest in and own valuable assets without the need to amass the full capital to outrightly buy the full property. They are also opportunities for like minded investors to own a fraction or time interest in properties pro-rated to what each person can contribute; they really mirror ownership of shares a company.
With the help of professionals, like Advocates, individuals can secure their interests while investing in these types of home ownerships which are rapidly growing.
Fractional and Timeshare home ownership are not just buzz words; they signify the major transformations reshaping the real estate space in Kenya. How? These types of ownership allow multiple persons to have a piece of the pie without buying the whole dream home or high–end real estate properties.
What is Fractional ownership?
This is a form of common ownership that allows a number of people to acquire common but indivisible interest in property; which interest is recognized and protected under the Land Registration Act. This type of ownership has been explored in Aberdare Spa and Safiri Lodge in Nakuru.
What of Timeshare ownership?
This is an arrangement where several parties acquire interest to use a similar property over various periods of time and each timeshare holder is allocated specific times in which they can possess and/or utilize the property. Timeshare ownership has been seen in places like the Baobab Beach Resort, the Amber Villas, Mwembe Suites (all in Malindi) and Ziwa Bush Lodge in Nakuru.
Is there a legislative framework for these types of real estate ownership?
Currently, there is no specific law or regulation that deals with how Fractional or Timeshare Home ownership in Kenya should be handled. Nonetheless, section 30(4) of the Land Registration Act which provides for common ownership of property comes close to allowing parties discretion on how to deal with the Land Title when they hold property in common.
So, how then do parties protect themselves in these types of conveyances?
The parties involved in Fractional and Timeshare ownership ought to follow the process of acquisition of interest in property in Kenya, which involves:
a) Negotiating and executing an Agreement for the type of ownership;
b) Conducting all the requisite due diligence on the property;
c) Executing the transfer for conveying the interest acquired;
d) Registration of that interest on the title of the property.Are there any upsides of these types of home ownership?
In my opinion, these Fractional and Timeshare home ownerships are welcome developments in the real estate space in Kenya, particularly in this era of inclusivity. They are innovative approaches empowering individuals, who would otherwise not be able to afford these high-end properties, to invest in and own valuable assets without the need to amass the full capital to outrightly buy the full property. They are also opportunities for like minded investors to own a fraction or time interest in properties pro-rated to what each person can contribute; they really mirror ownership of shares a company.
With the help of professionals, like Advocates, individuals can secure their interests while investing in these types of home ownerships which are rapidly growing.
