According to the report, some of the alkalolu do not take due diligence to obtain proof of ownership of properties or if the land to be sold is a reserved land for social amenities or other purposes different from residential.
“Some alkalolu have the reputation of wanting to make money by reselling land (s) that they know belongs to others,” the study revealed.
“As a result they, the act is known as double allocation of land with the alkalolu illegally selling one plot of land to different people.”
The report added that some of the real estate companies buy those properties through alkalolu knowing that they already belong to someone else which brings problems when it is time to provide the documentations for the land or show consumers the land they paid for.
“In some instances they said, real estate companies buy land from the owners through payment plans, they will sign the payment plan agreement with the seller and the seller urges the alkalo to make the transfer to the real estate company even without the company completing their payments,”
According to the report, the above mentioned issues later results to scenarios where one land is sold to two or more companies and all of the companies start selling the plots to their consumers which the study indicates is one of the reasons why some consumers will finish making the installment payments, whereas the companies cannot provide them with documentations.
“There are also situations when real estate companies buy a property, sometimes sold by an individual without the knowledge or permission from their family members, clans or “kabilos”, compelling multiple claims of the same land.”
The report also mentioned that from the estate companies’ point of view, they are also concerned about the high level of bureaucracy involved in obtaining documents for land.
The Commission highlighted that it is important to note that alkalolu or local transfers are the beginning of the process to get official transfers or lease for properties, therefore, if there are fraudulent practices at that stage, consumers are at the risk of never getting the necessary documents to develop their properties.