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Provide a template for a Real Estate Offer and Acceptance Agreement

Introduction

In Kenya, a Real Estate Offer and Acceptance Agreement is a legally binding document that outlines the terms and conditions under which a buyer agrees to purchase a property from a seller. This agreement is governed by various laws and regulations, including the Law of Contract Act (Cap 23), the Land Act (No. 6 of 2012), and the Land Registration Act (No. 3 of 2012). Below is a comprehensive template for a Real Estate Offer and Acceptance Agreement, complete with relevant sections and clauses.

Table of Contents

  1. Parties Involved

  2. Property Description

  3. Purchase Price and Payment Terms

  4. Conditions Precedent

  5. Closing Date and Transfer of Ownership

  6. Representations and Warranties

  7. Default and Remedies

  8. Dispute Resolution

  9. Governing Law

  10. Miscellaneous Provisions

  11. Signatures

1. Parties Involved

Seller:

  • Name: [Seller's Full Name]

  • Address: [Seller's Address]

  • ID/Passport Number: [Seller's ID/Passport Number]

Buyer:

  • Name: [Buyer's Full Name]

  • Address: [Buyer's Address]

  • ID/Passport Number: [Buyer's ID/Passport Number]

2. Property Description

  • Property Location: [Physical Address of the Property]

  • Land Reference Number: [LR Number]

  • Size of the Property: [Size in Acres/Square Meters]

  • Title Deed Number: [Title Deed Number]

3. Purchase Price and Payment Terms

  • Total Purchase Price: KES [Total Amount]

  • Deposit Amount: KES [Deposit Amount] (to be paid within [Number] days of signing this agreement)

  • Balance Amount: KES [Balance Amount] (to be paid on or before the closing date)

  • Payment Method: [Bank Transfer/Cheque/Cash]

4. Conditions Precedent

  • Financing: This agreement is contingent upon the buyer obtaining financing from a financial institution.

  • Inspection: The buyer has the right to inspect the property within [Number] days of signing this agreement.

  • Title Search: The buyer shall conduct a title search to confirm the seller's ownership and the absence of encumbrances.

5. Closing Date and Transfer of Ownership

  • Closing Date: The closing date shall be on or before [Closing Date].

  • Transfer of Ownership: The seller agrees to transfer ownership of the property to the buyer upon receipt of the full purchase price.

6. Representations and Warranties

Seller's Representations:

  • 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 Representations:

  • The buyer has the financial capability to purchase the property.

  • The buyer has conducted due diligence and is satisfied with the property's condition.

7. Default and Remedies

  • Seller's Default: If the seller fails to fulfill their obligations, the buyer may terminate this agreement and seek a refund of the deposit.

  • Buyer's Default: If the buyer fails to fulfill their obligations, the seller may retain the deposit as liquidated damages.

8. Dispute Resolution

  • Mediation: Any disputes arising from this agreement shall first be referred to mediation.

  • Arbitration: If mediation fails, the dispute shall be resolved through arbitration in accordance with the Arbitration Act (No. 4 of 1995).

9. Governing Law

  • This agreement shall be governed by and construed in accordance with the laws of Kenya.

10. Miscellaneous Provisions

  • Entire Agreement: This agreement constitutes the entire agreement between the parties and supersedes all prior negotiations and understandings.

  • Amendments: Any amendments to this agreement must be in writing and signed by both parties.

  • Severability: If any provision of this agreement is found to be invalid, the remaining provisions shall remain in full force and effect.

11. Signatures

Seller:

  • Signature: ___________________________

  • Name: [Seller's Full Name]

  • Date: [Date]

Buyer:

  • Signature: ___________________________

  • Name: [Buyer's Full Name]

  • Date: [Date]

Witness:

  • Signature: ___________________________

  • Name: [Witness's Full Name]

  • ID/Passport Number: [Witness's ID/Passport Number]

  • Date: [Date]

Conclusion

This template provides a comprehensive framework for a Real Estate Offer and Acceptance Agreement in Kenya. It is essential to ensure that all terms and conditions are clearly outlined and agreed upon by both parties to avoid any future disputes. Always consult with a legal professional to ensure that the agreement complies with all relevant laws and regulations.

Sources:

  • Law of Contract Act (Cap 23)

  • Land Act (No. 6 of 2012)

  • Land Registration Act (No. 3 of 2012)

  • Arbitration Act (No. 4 of 1995)

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