In Kenya’s real estate sector, the roles of estate agents and lawyers are increasingly overlapping, leading to concerns about the encroachment of lawyers into areas traditionally reserved for estate agents. This development has sparked debate within the industry, raising questions about the boundaries between legal practice and estate agency work.
Understanding the Legal Framework
The Estate Agents Act (Cap. 533) is the primary legislation that regulates estate agency in Kenya. It defines an estate agent as someone engaged in the selling, purchasing, or letting of land and buildings on behalf of others, and mandates that only licensed individuals can perform these tasks. Estate agents are required to obtain licenses from the Estate Agents Registration Board (EARB) to operate legally.
However, the Estate Agents Act includes an important exception: it explicitly excludes advocates from its definition of estate agents. According to Section 2 of the Act, advocates, when acting in the course of their legal practice, are not subject to the restrictions placed on estate agents. This exemption allows lawyers to perform tasks related to property transactions without needing to be licensed as estate agents.
The Advocates Act (Cap. 16), which governs the legal profession in Kenya, authorizes advocates to provide a range of legal services, including drafting legal documents, conducting conveyancing, and offering legal advice on property matters. This often involves activities closely related to those of estate agents, such as negotiating property transactions and handling the sale or lease of real estate.
What the Overlap?
Over time, the legal exemption granted to advocates has led to an increasing overlap between the roles of lawyers and estate agents. Some lawyers are now taking on tasks that go beyond traditional legal services, such as directly marketing properties, negotiating sales, and even managing property transactions from start to finish. These are areas that have historically been within the exclusive domain of estate agents.
This encroachment has caused concern among estate agents, who feel that their professional territory is being infringed upon. The legal framework, which allows advocates to operate without an estate agent’s license, has created a grey area that blurs the lines between the two professions.
Implications for the Real Estate Industry
“We’re seeing a real shift in the industry, where lawyers are gradually taking over roles that have traditionally been ours. Clients seem to prefer the convenience of getting both legal and transactional services from one place, but this leaves us, estate agents, increasingly sidelined. It’s disrupting the market and challenging our place in it,” says an estate agent who has witnessed this trend firsthand. “It’s becoming harder to distinguish where a lawyer’s job ends and where ours begins.”
Concerns are also being raised about the potential decline in service quality as lawyers take on more estate agency tasks. “Lawyers may offer dual services, but they don’t have the specialized market knowledge and experience that we do,” another estate agent pointed out. “There’s a real risk that clients will miss out on the depth of expertise that only a seasoned estate agent can provide.”
Property Daily Africa also sought the opinion of some lawyers engaged in estate agency.
“The reality is that clients are looking for efficiency and convenience,” says a lawyer who has expanded their services to include property transactions. “We are handling both the legal and transactional aspects, and we are able to provide a seamless experience for our clients. It’s not about sidelining estate agents; it’s about offering a more comprehensive service that meets the needs of today’s market.”
Another lawyer addressed the regulatory concerns raised by estate agents: “Our involvement is well within the scope of our legal practice as defined by the law. The law permits us to engage in these activities, and we do so with full respect for the legal boundaries. The overlap is natural and doesn’t undermine the roles of estate agents.”
As the lines between the roles of estate agents and lawyers continue to blur, industry professionals are calling for practical solutions to address the growing challenges.
“Clearer legislation could really help resolve this issue,” says a senior estate agent. “Amending the Estate Agents Act to better define the boundaries between what we do and what advocates can do would be a good start. It could specify exactly which activities require an estate agent’s license, even if a lawyer is involved.”
