Property sellers should not transact without lawyers

Harold Ayodo

Many property sellers are not aware that they need lawyers in their transactions. They assume conveyancers (property lawyers) are only hired to act for buyers. The sellers do not understand why they have to spend money on lawyers to dispose off their property.

What many people do not know is that the lawyer acting for the seller has different functions from the buyer’s lawyer. However, in cases where there is no conflict of interest, both parties (the seller and the buyer) can agree to use one lawyer.

If the parties opt for separate lawyers, the lawyers are required to maintain constant communication until completion of transactions.

Clearance certificates

The seller’s lawyer prepares the sale agreement, which mainly spells out terms of the transaction. Other duties include preparation of original title documents (title deed or lease) required to transfer the property to the name of the buyer.

The lawyer representing the seller must also ensure that land rent and rates are settled with the Ministry of Lands and Local Government, respectively. This will provide clearance certificates, which are part of essential documents in the transactions.

The lawyer must also certify photocopies of the national identity card and the Personal Identification Number (PIN) as true copies of the original.

Others to be certified include three passport size photos of the seller sent to the Lands Registrar when applying for consent to transfer the property.

The lawyer also attests forms filled by the seller and also — on behalf of his/her client — receives money from the advocate of the buyer.

For the seller’s lawyer to do his or her work effectively, they must be supplied with all the necessary information.

Mode of payment

These include names and addresses of the buyer and seller, purchaser’s advocate and any of the estate agents involved in preparing the sale agreement.

Other required details include particulars of the property for sale such as the price and whether it is freehold or leasehold.

The lawyer should also know the mode of payment — whether it is in full or in installments. Details of any mortgage or charge on the property, if any, the name of the lender and outstanding balance are also important for the lawyer.

The seller must inform the lawyer of the expected date to complete the transfer of the property to the buyer for inclusion in the sale agreement.

The writer is an advocate of the High Court of Kenya.

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