Court Rules Land Sellers Are Responsible for Brokers’ Deals, Even Without a Written Agreement

A High Court ruling has held that land sellers remain legally responsible for brokers they authorise to act on their behalf, even in the absence of a written agreement.

Land transactions in Kenya often involve brokers who market property, identify 

buyers and negotiate terms for sellers. These arrangements are frequently informal, but brokers play a central role in advancing transactions. 

They are typically paid a commission once a sale is completed. When disputes arise, however, brokers may be left exposed, sometimes pressured to refund money already transferred to sellers.

The case concerned a parcel of land in Thika. A buyer paid Ksh 1.3 million through a middlewoman and an additional Ksh 21,000 in membership fees. Several months later, rival claims to the same property emerged, with other individuals asserting that they had purchased it earlier. 

Police became involved, and the seller undertook to refund the buyer. Only part of the money was repaid, leading to court proceedings. The seller argued that the broker had acted without his authority and was not his agent. 

The court rejected this defence, relying on the law of agency. The judge stated that an agency relationship does not require a written contract and may be established through conduct. By permitting the broker to manage payments and negotiations, the seller had authorised her actions. 

The court ordered the seller to refund Ksh 740,000, and that decision was upheld on appeal. The ruling clarifies that sellers who benefit from a broker’s involvement cannot later deny the existence of an agency relationship. Where a seller has allowed an intermediary to handle a transaction and receive funds, legal responsibility remains with the seller.