FREQUENTLY ASKED QUESTIONS
1. Will there be a residents association structure for management fees etc, what will these be?
Yes, all buyers will become a member of the association, and will have a say in the management of the estate, the structure of the management, and the fees.
2. Land ownership/long term lease structure
Each buyer upon payment of the purchase price and signing of the sale agreement will be given a registered lease against the Head Title for the period of the lease, which is approx 99 years, renewable. The Lands Registry will issue/endorse an I.R (Inland Registry) number on the lease making that a legal title to the plot/footprint. Using this title document, you can borrow and banks will accept the registered lease as security. The endorsed lease will be proof of your title and should you wish to sell, the buyer will have their name(s) endorsed at the bottom of the same, therefore, effecting the change.
The buyer will also be issued a full share in Naretoi Ltd. There will only be one Class of shares in Naretoi.
3. Can I apply for a mortgage to buy this property?
Yes, you can apply for a mortgage. Of course, you will be required to communicate/consult with the vendor/vendor’s advocate and a lending institution prior to entering into the sale agreement. The lending institution will first be required to confirm their lending offer to you and the same offer must be communicated to the vendor’s advocate, who will proceed with the transaction accordingly.
4. Footprint Sales – can I buy any tier any time?
Buyers can buy any tier on any footprint on a first-come, first serve basis as long as the tier is allocated to the footprint they want. Each footprint is pre-allocated to a specific tier, and buyers cannot build a dwelling larger than permitted for that tier.
Should a buyer of a lower tier want to build a larger dwelling than permitted, they will be permitted to do so if they pay for a tier upgrade – i.e. pay the difference between their tier, and the tier that fits the size of dwelling they want to build.
5. What common utilities are there?
There are a few small dams on the property, which are stocked with fish, and owners will be permitted to fish in the dams at their own risk. There is also a campsite, cricket pitch and dedicated sundowner points.
6. Resale of Houses
Should a buyer wish to sell their Naretoi property, Naretoi Directors reserve the right to First Option to buy the footprint and its buildings/fixed assets. Should Naretoi Directors opt not to buy the property, then the owner(s) may sell to a third party according to the terms of the Sale Agreement/Lease.
7. Letting of houses to Third Parties
In principle this is allowed though subject to some restrictions. “Hotel” type use is not permitted. All occupants will be obliged to adhere to the Home Owners’ Rules and breach of the same will be dealt with accordingly by the Home Owners’ Association.
Naretoi Management will manage a house booking system whereby those owners who would like to generate some revenue from their dwellings by renting them out for short or long lets may do so by using the Naretoi booking system.
8. Are there any additional costs involved in owning a property on the Naretoi Estate?
Apart from the mandatory Service Charge, there is a Conservation Fee charge, that goes towards the Enonkishu Conservancy and is used to manage the conservation project and to pay the Enonkishu landowning families.
9. How many footprints are being sold?
32 footprints are currently being sold on the 1000 acres of Naretoi. The management guarantees a minimum landholding acreage of 20-acres per owner. This is broken down into the 5-acre footprint upon which the dwelling is built, plus a 15-acre share in the communal land.
10. Can a Non-Kenyan buy a footprint?
Yes. The new Constitution only prohibits a foreigner from owning freehold land. Each home owner will be issued a long-term lease of 99 years.
11.What happens if I cannot continue paying the lease premium/purchase price after signing the sale agreement?
If you fail to pay the lease premium/purchase price after execution of the sale agreement by both parties then you would then forfeit 10% of the lease premium/purchase price. However, any disbursements paid by you (for example, the share consideration or stamp duty etc) that have not been utilised shall be returned to you. The vendor has the right to look for an alternative purchaser and sell the property to that new purchaser before returning any amounts due to you.
12. Why do I pay a portion of the vendor’s advocate’s fees?
The buyer is required to pay a portion of the vendor's advocates’ administration and handling fee, disbursements and VAT, being 1% of the lease premium (purchase price) for preparing the sale agreement, the lease and arranging registration of the same. The buyer is required to pay a proportion of the vendor’s advocate’s fees because the vendor’s advocate will be preparing this documentation on behalf of both the buyer and the vendor. This proportion will need to be paid on the completion date. The buyer is also responsible for payment of stamp duty and registration charges to be incurred in connection with the stamping and registration of the lease.
14. Will I have a say in managing the Estate as a member of the Home Owners Association?
Yes. As a shareholder and in accordance with the Memorandum and Articles of Association, each member shall have the right to vote at meetings of the Home Owners’ Association. Each member will have the opportunity to stand for being a director of the Home Owners’ Association and will have the right to vote in respect of certain management issues.
15. If I want to sell my property are there any restrictions?
Each owner is free to sell their property as they wish. However, it should be noted that the Home Owners’ Rules will apply equally to all subsequent purchasers, who ought to be made aware of these rules prior to any such sale.