What should I check before buying an apartment?

The service charge and its history, whether a sinking fund exists and what schedule it is based on, the arrears position across the whole development, who manages it and on what terms, the by-laws on subletting and alterations, any disputes or contemplated special levies, and how the structure is insured.

Am I liable for problems in the rest of the building?

In effect yes, because the structure, roof, lifts and shared systems are funded collectively by the owners. A major repair with no reserves behind it becomes a special levy on whoever owns a unit that year, which is why the sinking fund and the arrears position matter more than the finish of the unit.

Is a balcony or parking space part of my unit?

It depends on the sectional plan, which defines the boundaries of the unit, and the answer is frequently not what people assume. It is worth establishing before purchase rather than at the point somebody wants to enclose, alter or allocate it.

Sectional title

Also called: sectional properties · apartment title · unit title · sectional plan · management company

A form of ownership in a multi-unit development where a buyer holds title to their own unit and an undivided share of the common property, with the shared parts managed collectively.

Buying an apartment is not like buying a house. What you own is a defined volume inside a building, plus a share of everything outside it, and a set of obligations to everybody else who owns a similar share.

Kenya's Sectional Properties Act provides the framework under which units in a development can be held under their own titles, with the common property held and managed collectively. Developments also exist under older long-lease structures with a management company, which achieve a similar result by different means, and which one applies to a particular block is one of the first things to establish.

What you actually own

The unit, as defined on a sectional plan. This is the part people underestimate: the plan defines the boundaries of your unit, and whether something is yours or common property is answered there rather than by intuition. Balconies, parking spaces, storage and the surface of external walls are all commonly ambiguous until you look.

An undivided share of the common property: the structure, the roof, the stairwells, the grounds, the lifts, the water systems, the boundary wall. Your share is defined and it is not separable from the unit.

Membership of the management structure, which is not optional and which comes with liabilities.

The questions that decide whether it is a good buy

Most people examine the unit and ignore the structure around it. The structure is what determines whether living there is pleasant or a decade of arguments.

What does the service charge cover, what is it now, and what was it three years ago? A charge that has never risen has usually never been reconciled.
Is there a sinking fund, what is the balance, and is it based on a schedule of major items? A block with a lift and no fund has a bill coming.
What are the arrears across the development? This is the single most revealing number. Where a significant proportion of units are not paying, the ones who do pay end up carrying the building.
Who manages it, on what terms, and how are they appointed and removed?
What do the by-laws say about subletting, short-stay letting, pets, alterations and parking?
Are there disputes, outstanding works or a special levy in contemplation?
Are the common areas and the structure insured, and by whom?

The liability people do not expect

A unit owner is exposed to the condition of the whole building, not just their own unit. A failing roof, a lift at the end of its life, or a structural problem is funded by the owners collectively, whether or not anybody set money aside for it.

This is why the sinking fund and the arrears position matter more than the finish of the kitchen. A well-finished unit in a development with no reserves and a third of owners in arrears is a liability with a nice worktop.

What goes wrong

Buying on the unit alone. The viewing covers the apartment, and nobody asks to see the management accounts.

No reserves. A special levy arrives for a lift replacement, and it is due from whoever owns the unit that year.

Unclear boundaries. Whether a balcony, a parking bay or a store is part of the unit or common property is discovered at the point somebody wants to change it.

The management structure is not properly constituted. Which is an issue to identify before purchase, through an advocate, rather than after.

Common questions

What is sectional title in Kenya?: A form of ownership in a multi-unit development where you hold title to your own unit as defined on a sectional plan, plus an undivided share of the common property, with the shared parts managed collectively. Kenya's Sectional Properties Act provides the framework, and older developments may instead use long leases with a management company.
What should I check before buying an apartment?: The service charge and its history, whether a sinking fund exists and what schedule it is based on, the arrears position across the whole development, who manages it and on what terms, the by-laws on subletting and alterations, any disputes or contemplated special levies, and how the structure is insured.
Am I liable for problems in the rest of the building?: In effect yes, because the structure, roof, lifts and shared systems are funded collectively by the owners. A major repair with no reserves behind it becomes a special levy on whoever owns a unit that year, which is why the sinking fund and the arrears position matter more than the finish of the unit.
Is a balcony or parking space part of my unit?: It depends on the sectional plan, which defines the boundaries of the unit, and the answer is frequently not what people assume. It is worth establishing before purchase rather than at the point somebody wants to enclose, alter or allocate it.