KMLS Resources: Closing Day
Every buyer and seller of real estate naturally anticipates the day when the transaction will be completed; the buyer walks away with their title to the property and the seller can realize his equity from his property. In the Kenyan real estate market, this is normally a gradual process spelt out in the sale agreement but there is normally no formal day set aside for closing. This is about to change!
When you buy or sell property through KMLS, you are both entitled and required to attend a formal closing ceremony where the title changes hands and all accounts are settled. It is important to remember that under our model, all funds paid at deposit are held in a trust account controlled by the seller, buyer, broker and party advocates. When all documents have been formalized the both the broker for seller and the broker for the buyer will convene a closing ceremony where all parties have a chance to examine all documents, settle all accounts and close the trust account.
Closing ceremonies are important for the following reasons:
- Buyers and sellers have a chance to meet formally.
- A formal meeting guarantees that brokers are not able to manipulate the price paid to make unauthorized commissions and/or profits.
- The buyers have a chance to examine the title and if need be resolve any issues.
- All funds are disbursed at that point thus each agent and/or broker is paid, legal fees are settled and the buyers have a chance to ensure all rates, stamp duties and any government fees are settled.
Remember at the closing ceremony, the bulk of the money changes hands and it is normally here that most fraud has a chance to be detected and stopped.