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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
Parties Involved
Property Description
Purchase Price and Payment Terms
Conditions Precedent
Closing Date and Transfer of Ownership
Representations and Warranties
Default and Remedies
Dispute Resolution
Governing Law
Miscellaneous Provisions
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)
Answered by mwakili.com