I am a first-time house buyer. What do I need to know?
- The first step is to decide what kind of property you want to purchase. Whether you buy it off the plan, a house that is under construction, or a ready house or bare land.
- Each of these properties are governed by different land regimes.
- Doing Due diligence entails having your documents reviewed by professionals. Having a lawyer conduct several searches with various authorities to ensure that the property is free of any impediments.
- Some common due diligence aspects include searching the Lands Registry, the Companies Registry, the Ndungu Lands Report, the Court’s Registry, performing a physical site visit, and hiring a surveyor to determine the approximate area of the land.
- Once you’ve determined that the house you want to buy is free of encumbrances, the next step is to make an offer to purchase (sometimes referred to as an Agreement of Purchase and Sale). This is a legal document that must be meticulously prepared, which is why you should work with an experienced Conveyancing practitioner.
- If you plan to buy a house with a mortgage, get pre-qualified with a Mortgage Lender or bank to determine the size of the loan and the type of payment that works best for you. Your lender may require you to obtain a property appraisal, a land survey, or both, in addition to title insurance.
- Upon execution, the buyer pays a deposit of 10% to 30% of the purchase price, which is usually refundable if the seller defaults on the transaction and may be forfeited if the buyer defaults.
- Completion period is usually from 30 days to the period the parties agree upon and time commences once the Agreement for Sale is signed by the Parties. Upon execution of the Agreement and the deposit of the purchase price being paid then the Advocates for the parties normally exchanges the documents with the balance of the purchase price to enable the Purchaser’s Advocates commence registration. It is only after successful registration of the Transfer in favor of the Purchase that the Vendor’s Advocates releases the balance of the purchase price to the Vendor.
What is a Mortgage/Charge?
- A mortgage is the security document created between the Bank/Lender and the Borrower that gives the ender the right to take the Borrower’s property if they fail to repay the money they have borrowed plus interest.
Do we need a lawyer when buying a house/property?
- A real estate Lawyer is very important in buying a house as they help in reducing the risk and ensure a smooth transaction. A lawyer can, among other things, give advice on how to find the best property for a prospective homeowner, title search, deal with brokers, prepare and review purchase agreements, negotiate and execute a contract of sale, secure a mortgage, and attend the closing where the deed is transferred.
- In addition, purchasing a property involves more than just paying for it and
Do I need a home inspector?
- A home inspection is a thorough assessment of a house’s condition. Although not always, the home inspection procedure is carried out when the house is being sold.
- A certified home inspector is a qualified individual who will examine the home’s general condition. A thorough inspection will help a customer fully comprehend the property they are about to purchase.
What is “buyer beware”?
- Caveat emptor, or “buyer beware,” is a legal principle that states that the onus is on the buyer to fully investigate a property before deciding to buy it or committing to do so.
What is an offer of purchase?
- Although “promise to purchase” is the right phrase, “offer to purchase” is more frequently used. It is a legal document in which the buyer formally offers to acquire the seller’s property. The offer outlines the intended acquisition price as well as the terms and conditions under which the deal would go through.
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Does your law firm do legal training to corporates? If yes please share details
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There is a new legal update notice by CBK on digital money? Do you mind expounding on it?
Introduction On 30th November 2020, the Central Bank of Kenya (Amendment) Bill, 2020 (‘the Bill’) was published in the Kenya Gazette and seeks to have the Central Bank of Kenya (‘CBK’) regulate providers of digital money lending services. Contents of the Bill The Bill describes digital money lenders as any entity that offers credit facilities. We have a full blog on this but also you can reach out to benson.ngugi@attorneys for more consultations