The Real Estate Regulations Bill 2023 encompasses a range of offenses and corresponding penalties aimed at safeguarding compliance with its provisions and upholding ethical conduct within the Real Estate industry.
They serve as a deterrent against any illicit activities or practices within the Real Estate sector, thus safeguarding the interests of both industry stakeholders and the general public. Among the key violations delineated in the Bill are the following:
Non-registration of Real Estate Projects:
Developers found guilty of embarking on Real Estate projects without adhering to the mandatory registration requirements specified by the Act may face penalties that include imprisonment for a duration not exceeding 3 years, a fine amounting to no less than Kshs 5.0 mn, or a combination of both punitive measures,
Providing false information:
Real Estate developers or estate agents found guilty of providing deceptive or inaccurate information to the regulatory Board may be subjected to a fine equivalent to 5.0% of the estimated cost of the implicated Real Estate project, as evaluated and determined by the Board,
Failure to Comply with Board Orders: where specified parties mentioned in the Act are found guilty of violation of the directives and orders issued by the Board under the Act will be subjected to a daily penalty rate, with cumulative consequences that can extend up to a maximum of Kshs 20.0 mn or 10.0% of the estimated cost of the Real Estate project, as ascertained by the Board,
Failure to Comply with Court Orders:
Any person who fails to adhere to or contravene court orders issued under the provisions of the Act is deemed an offense may result in imprisonment for a period of up to 3 years, a monetary fine not exceeding Ksh.10.0 million, or a combination of both penalties and,
General Offense Penalty:
Developers convicted of offenses under the Act for which no specific penalties are prescribed elsewhere in the legislation may be liable to a fine of no more than Ksh.1.0 million.