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Draft a Real Estate Contingency Agreement for a buyer and seller
Real Estate Contingency Agreement
This Real Estate Contingency Agreement ("Agreement") is made and entered into as of [Date] by and between [Seller Full Name], residing at [Seller Address] ("Seller"), and [Buyer Full Name], residing at [Buyer Address] ("Buyer").
1. Introduction
1.1. Seller is the owner of the property located at [Property Address] ("Property").
1.2. Buyer desires to purchase the Property from Seller, subject to the terms and conditions of this Agreement.
2. Contingencies
2.1. This Agreement is subject to the following contingencies:
Financing Contingency: Buyer shall have [Number] days from the date of this Agreement to obtain a satisfactory financing commitment from a reputable financial institution for the purchase of the Property. If Buyer is unable to obtain such financing commitment within the specified time frame, Buyer may terminate this Agreement by providing written notice to Seller.
Inspection Contingency: Buyer shall have [Number] days from the date of this Agreement to have the Property inspected by a qualified inspector of Buyer's choice. If the inspection reveals any material defects that are unacceptable to Buyer, Buyer may terminate this Agreement by providing written notice to Seller.
Appraisal Contingency: Buyer shall have [Number] days from the date of this Agreement to obtain a satisfactory appraisal of the Property from a reputable appraisal company of Buyer's choice. If the appraisal value is less than the purchase price agreed upon in this Agreement, Buyer may terminate this Agreement by providing written notice to Seller.
Title Contingency: Buyer shall have [Number] days from the date of this Agreement to obtain a satisfactory title report and title insurance policy for the Property. If the title report reveals any encumbrances or defects that are unacceptable to Buyer, Buyer may terminate this Agreement by providing written notice to Seller.
3. Purchase Price and Payment
3.1. The purchase price for the Property shall be [Amount] (KES).
3.2. Buyer shall pay the purchase price as follows:
[Amount] (KES) upon signing this Agreement as a non-refundable earnest money deposit.
The remaining balance of [Amount] (KES) shall be paid at closing.
4. Closing
4.1. Closing shall take place on or before [Date] at [Location].
4.2. Seller shall provide Buyer with a clear and marketable title to the Property, free and clear of all encumbrances, except as specifically agreed upon in this Agreement.
5. Default
5.1. If either party defaults on its obligations under this Agreement, the non-defaulting party shall have the right to pursue all available legal remedies, including but not limited to specific performance, damages, and injunctive relief.
6. Entire Agreement
6.1. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.
7. Governing Law
7.1. This Agreement shall be governed by and construed in accordance with the laws of the Republic of Kenya.
8. Notices
8.1. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by overnight courier service, addressed as follows:
If to Seller:
[Seller Full Name]
[Seller Address]
If to Buyer:
[Buyer Full Name]
[Buyer Address]
9. Severability
9.1. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall remain in full force and effect.
10. Waiver
10.1. No waiver of any breach of this Agreement shall be deemed a waiver of any subsequent breach.
11. Binding Effect
11.1. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
12. Counterparts
12.1. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Seller Signature]
[Seller Printed Name]
[Buyer Signature]
[Buyer Printed Name]
Table of Contents
Introduction
Contingencies
Purchase Price and Payment
Closing
Default
Entire Agreement
Governing Law
Notices
Severability
Waiver
Binding Effect
Counterparts
TLDR
This Real Estate Contingency Agreement outlines the terms and conditions for the purchase of a property, including contingencies for financing, inspection, appraisal, and title. It also specifies the purchase price, payment terms, closing details, and other relevant provisions.
Conclusion
This Real Estate Contingency Agreement is a legally binding document that outlines the terms and conditions for the purchase of a property in Kenya. It is important for both the buyer and seller to carefully review the Agreement and understand its implications before signing.
Sources:
Case Laws:
Civil Case 75 of 2019: This case involved a dispute over the sale of assets, highlighting the importance of clear and unambiguous terms in asset purchase agreements.
Criminal Appeal E017 of 2020: This case involved a dispute over the sale of land, demonstrating the need for proper documentation and payment procedures in real estate transactions.
Environment & Land Case E005 of 2024: This case involved a dispute over the sale of land, emphasizing the importance of obtaining a clear and marketable title to the property.
Anti Corruption and Economic Crimes Petition E004 of 2020: This case involved a dispute over the sale of land, highlighting the principle of ripeness and the need for parties to address pertinent legal points.
Civil Appeal E035 of 2022: This case involved a dispute over a loan secured by a motor vehicle, demonstrating the importance of clear terms and conditions in loan agreements.
These case laws provide valuable insights into the legal complexities of real estate transactions in Kenya and emphasize the importance of seeking legal advice from a qualified professional.
Answered by mwakili.com