You probably know how crucial a land sale agreement is if you consider buying or selling any real estate in Kenya. Importantly, it is a document that affords both the Seller and Buyer transparency and legal enforceability.

At the end of this post, you will learn how to write a land sale agreement, how not to make mistakes in writing a land sale agreement, title deed inquiry in Kenya regarding payments and why a written contract is necessary.

What Is a Land Sale Agreement in Kenya?

This is a document that details how the transaction will go down and puts both parties on the same page. Once signed, witnessed and stamped, this document is legally enforceable.

Failure to register the land sale agreement may result in disputes, fraud, or you losing your money.

The law applicable in Kenya provides that all agreements for the sale of land must be evidenced in writing, signed and witnessed according to the Law of Contract Act.

This is fair for both sides and provides clarity of the agreement. Whether purchasing a plot in Nairobi, Mombasa or a rural area, a land sale contract in Kenya is your safety net.

The Importance of A Land Sale Written Agreement

Now, you might ask… “Can we just talk about and agree on it? The short answer is no. Verbal land sale agreements are not legally enforceable in Kenya.

Why Is a Written Land Sale Agreement in Kenya Necessary?

As per the Law: In Kenya, land sale agreements must be in writing, signed and witnessed to be enforceable by S. 3 of the Law of Contract Act (Chapter 23).

Certainty: It’s a land deal made by an agreement to sell the land, i.e.. It explains the terms such as price, payment schedule, and both parties’ duties.

Reason for using: It prevents fraud and confusion. If the seller cancels or the buyer does not pay, you have a document to take to court to prove the agreement.

Proof: A Kenyan land sale agreement, written, signed, and witnessed, forms a protection in case of disputes or when transferring the title from one owner to another.

This is a considerable risk and was done without a written agreement. So, now let us see how to form an impeccable land sale agreement.

Key Clauses to Have in a Land Sale Agreement in Kenya

In a land sale agreement in Kenya, you have to state the appropriate clauses to bring it into a complete law document. Below are the whales you need to be aware of:

The Buyer and Seller

Write down the full names, ID numbers, and phone numbers of each.

Land

Include plot address, size, and any known places.

An example is — Plot LR No. 123/456 Ngong, Kajiado County, measuring 0.5 acres

Price

The whole price and how it shall be paid (i.e., all at once, or in instalments).

Example: “The purchase price is KSh 2,000,000 in three instalments.”

Sales Conditions

Specify the payment terms in instalments or a prepayment of 10% of the sale price of the land in Kenya.

Examples: “Upon signing, the buyer shall deposit 10% of KSh 200,000.”

Default Clause

This clause should define what happens if one of the two parties fails to perform their obligations.

An example may be, “Should the buyer not pay after 30 days, the seller has the right to terminate the agreement and retain the holding deposit.”

A Force Majeure Clause

This relates to an unexpected act of God or natural disasters that may delay the project later.

For example, “In no event shall either party be liable for delays resulting directly or indirectly from any acts of God, such as fire, strains in interstate transportation.

Dispute Resolution Clause

Kenya’s land agreement should also have a dispute resolution clause, for example, through mediation or arbitration.

Example, “Shall settle any disputes through arbitration in Nairobi”

Termination Provisions

Specify how the contract can be terminated, whether both parties agree, or if one party breaches the terms.

These clauses help clarify your land sale agreement and protect both parties. If you are still unsure about drafting these land sale agreements, kindly consult an advocate and ask for an advocate-drafted land sale agreement in Kenya.

Do the Research and Check Before You Sign

Before signing a land sale agreement in Kenya, you should do your homework. This is due diligence before buying land in Kenya, and it helps us prevent scams at all times. Here’s what to do:

Land registry search Kenya

Title Deed Verification in Kenya. Visit the land registry at the Ministry of Lands or your local Ardhi House to ascertain that the seller owns the land. Verify title deed and make sure it is encumbrance-free (No loans, disputes, etc.)

Check Land Ownership Kenya

Confirm that the authenticity of the title deed corresponds with that of the seller. The local chief or land control board can also provide direction.

Inspect the Land

Visit the land to check out its location and perform an actual physical inspection to verify location, size, and boundaries. Bring a surveyor if possible.

Approvals

Confirm that the land is agricultural and, in case of buying or selling, ensure they have met the Land Control Board stamping requirement. You do need their approval for this to take place.

Skipping due diligence before buying land in Kenya could lead you to falling prey to con men or purchasing a piece of non-existent land, or one whose ownership is disputed.

Payment Terms and Schedule

The simple answer is that Kenya’s land sale agreement states how and when the buyer will pay. Here are some tips:

Deposit

Paying a 10% deposit in Kenya when you sign your land sale agreement is standard procedure. For example, if the land costs KSh 5,000,000, the deposit would equal KSh 500,000.

Instalment

If yes, then mention the Payment Schedule. EG The buyer will make quarterly payments of Kshs 1,000,000 until the balance is paid in full.

Last Payment

Mention when the previous payment will be, and provide a timeline for the transfer of the title deed.

Bank Details

Seller bank details for more transparency

Ensure the buyer and seller agree on payment terms in Kenya to prevent future disputes.

Dispute resolution and Termination options

Disagreements may arise, so a dispute resolution clause in the land agreement in Kenya is required. For example:

• Arbitration Clause Kenya: Any issue will be settled by the arbitrator mutually agreed upon by the parties.

• Termination Clause: In case Buyer defaults in his payment within 60 days, or if both parties agree.

This way, you will have straightforward ways of solving problems without entering the halls of justice.

Quick steps to transfer land sale agreement, Kenya:

Execution and Witness

The buyer and seller shall execute the agreement in the presence of two witnesses. This fulfils the contract requirement under Kenya’s signed and witnessed land law.

Applying for a stamp

Get the agreement stamped by a lawyer or the Lands Office—maternity hospital birth certificate for anyone born on or before 1978 (In addition to the BC). If you are dealing with agricultural land, ensure that the Land Control Board stamping is applicable.

Enrollment

Formalize the agreement by having it recorded in the Land Registry. This is a vital part of the land transfer consent board in Kenya.

Engaging an attorney while drafting a land sale agreement in Kenya is beneficial, as an advocate can provide peace of mind that all legal requirements have been met.

How not to be Swindled when Purchasing Land in Kenya

Land fraud is common in Kenya. Some of them are the pitfalls and how to avoid them:

Fake Title Deeds: You only know if a title deed is genuinely fake when you physically visit the Land Registry for title deed verification in Kenya.

Double selling: Some plots are sold to multiple people by the same seller. A land registry search in Kenya will establish the status of…

Vague Terms: You must review the land sale agreement to ensure nothing is left open. Going with an open term can cause misunderstanding(seed control/usage as well)

Never Rush without a Pre-purchase Inspection. Never rush to proceed with the transaction without due diligence when buying land in Kenya. That is the best way to protect oneself from fraud.

If you feel uneasy, ask an advocate or pause until you are confident.

Step-by-Step Guide to a Land Sale Agreement in Kenya

• Land Verification: Do a land registry search in Kenya and a title deed verification in Kenya.

• Agreement Drafting: Payment Terms, Dispute Resolution, Land Description and other important clauses.

• Engage an Advocate: A land sale agreement drafted by an advocate in Kenya guarantees compliance with the law.

• Sign and Witness: Make sure the contracting parties sign an agreement. How to Contract Land in Kenya land law provisions offer writer.herokuapp.com;

• Stamp and Register the agreement: Required stamping by the Land Control Board & registration of the entire deal.

• Keep Records of Making Payments: Adhere to the payment terms in Kenya and maintain a written record.

• Title Transfer: The transfer is made after the time payments are completed.

Final Thoughts

Land sale agreement sample in Kenya. Well, with this guide, you can make a clear and legally binding land sale contract in Kenya for both parties involved in the land sale. Always do your due diligence, get a copy of the title deed, and possibly get a lawyer to smooth land acquisition in Kenya. For a land sale agreement template or a sample land sale agreement in Kenya, you can check reliable sources or employ the services of a lawyer.