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The Estate Agents (Remuneration) Rules

Legal Notice 36 of 1987

This is the latest version of this Legal Notice.
The Estate Agents (Remuneration) Rules
Citation
Legal Notice 36 of 1987
Primary work
Estate Agents Act
Date
31 December 2022
Language
English
Type
Legal Notice
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LAWS OF KENYA

ESTATE AGENTS ACT

THE ESTATE AGENTS (REMUNERATION) RULES

LEGAL NOTICE 36 OF 1987

  • Published in Kenya Gazette Vol. LXXXIX—No. 6 on 6 February 1987
  • Commenced on 6 February 1987
  1. [Amended by Estate Agents (Remuneration) (Amendment) Rules, 2002 (Legal Notice 198 of 2002) on 13 December 2002]
  2. [Revised by 24th Annual Supplement (Legal Notice 221 of 2023) on 31 December 2022]
1.These Rules may be cited as the Estate Agents (Remuneration) Rules.
2.The estate agents remuneration shall be calculated in accordance with the scale of fees set out in the Schedule.

SCHEDULE

SCALE OF FEES

[L.N. 198/2002.]

SCALE I

Sales:On the first KSh. 100,000 ........................................ 10%On the next KSh. 900,000 ........................................... 6%On the residue .......................................................... 3%

SCALE IA

Purchases:On the first KSh. 100,000 ............................................ 5%On the next KSh. 900,000 .............................................. 3%On the residue .................................................... 1.5%

SCALE IB

On Sales of Plant and Machinery:Ten per cent of the total value realised.

SCALE IC

Sales and Purchases Effected by a Transfer of Shares:Scales I and IA shall apply undiminished by any loan or other charges upon the property of the company’s assets.

SCALE 2 – LETTINGS

Residential:Lease up to one year ........................... 7.5% of annual gross rent.Lease of over one year .......................... One month’s rent.Commercial:Sole agency ..................................... 7.5% of annual gross rent.General agency .................................. 10% of annual gross rent.Fees by negotiation if management services involved but not less than half scale.

SCALE 3

(a)For seeking and negotiating the tenancy or lease of a property to suit a client’s requirements:The fee payable as per the appropriate letting scale and by arrangement if negotiations abort.(b)For negotiating the tenancy or lease of a particular property named by a client:The fee payable shall be three quarters of the appropriate letting scale and half the estimated one month’s rent subject to a minimum of KSh. 500.

SCALE 4 – MANAGEMENT

Residential:
10per cent of the gross rents or less according to the circumstances but not less than 5 per cent.Commercial:
7.5per cent of the gross rents or by arrangement but not less than 2.5 per cent.

SCALE 5

Mortgages:For negotiating the terms of mortgages or charges as an intermediary between or on behalf of either of the principals:(a)In case of a successful deal, the agent is entitled to a negotiated commission but no fees.(b)Where agent is instructed to fund and negotiate a mortgage without handling the sale:Fees to be not more than 0.25 per cent of the capital value of the mortgage.
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History of this document

31 December 2022 this version
13 December 2002
06 February 1987
Published in Kenya Gazette 6
Commenced