Since land is currently the most valuable fixed item you could possibly own, everyone in society aspires to own some. However, before you begin the entire land-buying procedure, you must obtain a few documents.
The following legal documents are necessary when purchasing land;
1: A letter of offer or reservation.
This document declares a buyer’s intent to buy a piece of property. It is a one-page document that outlines the terms and conditions of the land sale agreement for both the seller and the buyer.
The following are included in the document:
- The seller’s name
- The buyer’s name
- The plot number, or property identification number
- The chosen method of payment, which is typically cash or installments
A copy of this agreement should be sent to both the buyer and the seller. By doing this, the possibility of two parties buying the same property is eliminated.
2: Sale contract/Agreement.
This legally binding document outlines each party’s responsibilities under a purchase agreement. The two parties concerned are bound by it. In that scenario, the property is sold to the buyer.
It is advisable to only sign this paper after carefully checking that everything is in order. Conducting due diligence in real estate includes going on a site visit to check the property’s location and dimensions and conducting a land search to ensure that the seller is the property’s owner. This document includes;
- Names of the buyer and the seller in full
- The details of the asset up for sale i.e., location, dimensions, plot number, and present state, whether it is occupied or vacant.
- The cost of purchasing the land and the method of payment.
This contract is crucial since it safeguards both parties involved in the land purchase process. The aggrieved party may file a lawsuit to recover damages if either the seller or the buyer violates the conditions of this agreement.
3: A copy of the title deed.
This legal document proves ownership of the land and gives a clear description of the property. You will need to sign a title transfer document when the seller has received all the money. This paperwork is used to change the seller’s ownership of the property to the buyers. The following files must be affixed:
- A signed authorization from the Lands Control Board to sell
- A receipt proving you paid the stamp duty
- Copies of the identifying papers
- Buyer’s KRA pin certificate
- Two photographs for a passport.
The transfer of land is legally attested by this document. It can be used to research the property’s past in the Land Registry.
Okay, we know that all this documentation stuff can be overwhelming. But trust us, it’s worth taking the time to make sure everything is in order. By doing so, you’ll be protecting yourself and ensuring that the land-buying process goes as smoothly as possible.