1 .Offer letter or reservation form
A letter of offer is a document expressing interest by a buyer to purchase a property .
It is a single page document that outlines the contractual terms and conditions for both the person selling the land (vendor) and the person looking to buy the land (purchaser) .
It is the first document you as a buyer are required to sign after selecting and booking for a given plot .
The main contents of the document are:
- The name of the vendor
- The name of the purchase
- A witness to the transaction
- The property identification number (plot number)
- The preferred payment term, in most cases cash or installment
The vendor and the seller should each have a copy of this document whose main aim is to eliminates the probability of two parties purchasing the same property .
2 . Sale agreement
A sale agreement is a next document you will need when purchasing land .
It is a legally binding document that spells out the obligation of each party to a purchasing contract .
What it does is it binds the vendor to sell the property and the buyers to purchase the said property .
You are advised to sign this contract after doing your due diligence to ascertain everything checks out .
Due diligence in land dealing involves attending a site visit to verify the location and the size of the property, doing a land search to confirm that the seller is indeed the owner of the property among other things .
- The contents of the agreement are:
- The full names of both the seller and the buyer .
- The description of the property under sale . (This includes its physical location, size of the land, plot number and its condition that is whether vacant or occupied land. )
- The purchasing price of the property and how the payments are to be made .
- Special conditions surrounding the property, this dictates who is to pay for other charges such as stamp duty, legal fees, and title transfer costs .
A sale agreement is an important document as it protects both parties in a land purchasing process .
With this document, if either the seller or the purchaser fails to meet the purchase terms, then the aggrieved party can take legal action to recover the damages caused .
To properly protect yourself, we advise that a sale agreement be filled in triplicate, one copy for the property vendor, a copy for the buyer, and the other for a lawyer who should oversee the transaction .
3 . Title transfer document
Finally, after all the payments for the property are made to the seller, you will need to sign a title transfer document .
This document is the one used to transfer the ownership of the property from the vendor to you as a purchaser .
Before submitting a transfer request to the Land Registry, the following documents needs to be attached:
- An approved consent of sale from the Lands Control Board
- Proof of having paid the Stamp duty
- Copies of identification documents
- KRA pin certificate of the buyer
- Two passport photos
A title transfer document is the legal proof of land transfer, it can be used when tracing the history of the property in the Land Registry .
The document is to be filled in triplicate: a copy at the Land Registry, a copy for the buyer, and the other for the seller .
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