When you are looking to invest in property whether you are living in Kenya or in the diaspora it is important to take note of the various documents involved in land transfer and each of them plays a unique role in the purchase process especially land.
A letter of offer is a single paged document that expresses intention by the buyer to purchase a property and spells out the binding terms and conditions for both the seller and the buyer. Details contained include the name of the seller, buyer, lawyer overseeing the transaction, property identification number, the payment terms either cash or instalment and a slot to fill in next of kin details. The buyer is required to sign this document in duplicate. One copy is retained by the seller and the other one belongs to the buyer. This is the first document a buyer signs after selecting a plot and paying the booking fee. This key document eliminates the possibility of two parties buying the same piece of land.
A sale agreement is a legal contract that obligates a buyer to buy and a seller to sell a product and in this case land. This document contains identity of the parties in the agreement, identity and description of the property under sale, the purchase price of the property and general and special conditions that surround the property on sale. This document fully protects the rights and interests of the buyer and the seller because if one party fails to adhere to the contract the other party can take legal action to recover the damages caused. The sales agreement is filled in triplicate one for the vendor, one for the purchaser, one for the lawyer/ legal advisor overseeing the transaction.
This is a document that is involved in transfer of a title deed from the name of the seller to the buyer’s name. This document is filled in when payment of a property is completed. A title transfer is attached with an approved consent for sale from the Lands Control Board, Stamp duty slip as a proof of paying government levies, copies of ID number of the buyer and of two directors of the investment company, KRA Pin Certificate of the buyer and of the investment company, Passport photos of the buyer and of two directors of the investment company and Certificate of Incorporation of the investment company The title transfer document is filled in 3 copies; one copy is filed at the Land Registry, the second at the investment company and the third belongs to the buyer. This document is the legal proof of transfer of the title and can be used when tracing the history of a property in the Lands Registry. In your next land purchase, ensure you request for these documents from your Relationship Manager. If you are in diaspora an offer letter is sent to you via email address while a sales agreement and a title transfer form will be sent to you via your preferred courier service for signing.