Ask a lawyer:
example house sale agreement
Introduction
In Kenya, a house sale agreement is a legally binding document that outlines the terms and conditions under which a property is sold. This agreement is crucial as it protects the interests of both the buyer and the seller. The agreement must comply with various laws and regulations, including the Law of Contract Act, the Land Act, and the Land Registration Act. Below is a comprehensive example of a house sale agreement, including the necessary clauses and legal requirements.
Table of Contents
Parties Involved
Property Description
Purchase Price and Payment Terms
Conditions Precedent
Completion Date
Possession
Warranties and Representations
Default and Remedies
Dispute Resolution
Governing Law
Signatures
1. Parties Involved
Source: Law of Contract Act, Cap 23
Seller: [Full Name], [ID/Passport Number], [Address]
Buyer: [Full Name], [ID/Passport Number], [Address]
2. Property Description
Source: Land Registration Act, 2012
Property Title Number: [Title Number]
Location: [Physical Address]
Size: [Size in Acres or Square Meters]
Boundaries: [Description of Boundaries]
3. Purchase Price and Payment Terms
Source: Law of Contract Act, Cap 23
Total Purchase Price: Ksh [Amount]
Deposit: Ksh [Amount] (to be paid upon signing this agreement)
Balance: Ksh [Amount] (to be paid on or before the completion date)
Payment Method: [Bank Transfer/Cheque/Cash]
4. Conditions Precedent
Source: Land Act, 2012
Financing: The buyer must secure financing from [Bank/Financial Institution] within [Number of Days] days from the date of this agreement.
Due Diligence: The buyer has [Number of Days] days to conduct due diligence, including title search, property inspection, and verification of property boundaries.
Consents: The seller must obtain all necessary consents and approvals from relevant authorities.
5. Completion Date
Source: Law of Contract Act, Cap 23
Completion Date: The transaction shall be completed on or before [Date], subject to the fulfillment of all conditions precedent.
6. Possession
Source: Land Act, 2012
Possession Date: The buyer shall take possession of the property on the completion date.
Vacant Possession: The seller shall ensure that the property is vacant and free from any encumbrances on the possession date.
7. Warranties and Representations
Source: Law of Contract Act, Cap 23
Seller's Warranties:
The seller has the legal right to sell the property.
The property is free from any encumbrances, liens, or legal disputes.
The property complies with all applicable laws and regulations.
Buyer's Warranties:
The buyer has the financial capacity to complete the purchase.
The buyer has conducted all necessary due diligence.
8. Default and Remedies
Source: Law of Contract Act, Cap 23
Seller's Default: If the seller fails to complete the sale, the buyer may:
Terminate the agreement and recover the deposit.
Seek specific performance to compel the seller to complete the sale.
Buyer's Default: If the buyer fails to complete the purchase, the seller may:
Terminate the agreement and retain the deposit as liquidated damages.
Seek specific performance to compel the buyer to complete the purchase.
9. Dispute Resolution
Source: Arbitration Act, 1995
Arbitration: Any disputes arising from this agreement shall be resolved through arbitration in accordance with the Arbitration Act, 1995.
Arbitrator: The arbitrator shall be appointed by mutual agreement of the parties or, failing such agreement, by the Chairman of the Chartered Institute of Arbitrators, Kenya Branch.
Venue: The arbitration shall take place in [City/Town].
10. Governing Law
Source: Law of Contract Act, Cap 23
Governing Law: This agreement shall be governed by and construed in accordance with the laws of Kenya.
11. Signatures
Source: Law of Contract Act, Cap 23
Seller's Signature:
[Full Name]
Date: [Date]
Buyer's Signature:
[Full Name]
Date: [Date]
Witness's Signature:
[Full Name]
Date: [Date]
Conclusion
A house sale agreement in Kenya must be meticulously drafted to ensure that it complies with the relevant laws and protects the interests of both parties. The above example provides a comprehensive template that includes all necessary clauses and legal requirements. It is advisable to consult a legal professional to tailor the agreement to specific circumstances and ensure its enforceability.
Answered by mwakili.com