5 things to know about a letter of offer
The offer letter when buying property in Kenya
When buying property in Kenya from a real estate company, you will get a request to sign a document from the seller. This document is called a letter of offer. It is set to express the interest of the buyer in the property before any payments are done. It also contains the terms and conditions of the transaction, the purchase price, and the down payment. An offer letter should be signed by the buyer and the seller with the help of their Lawyers who will act as the witnesses of the agreement. It is important to note that this letter is not a legally bound contract but just a proof document.
5 elements of the offer letter
An offer letter comprises of five main elements:
- The name of the buyer,
- Address of the buyer,
- The name of the buyer’s lawyer
- Address of the lawyer
- Details of the property.
Besides, the offer letter should show when the transaction should be completed and also show its not a legal document. When buying property from commercial property Kenya, you can ask your lawyer to search to make sure it’s not a fraud. The lawyer should be looking for a registered owner, land reference number, impediments, registration details, and an agreement. This will also show if the property is freehold or leasehold.
3 importance of letter of offer when buying property in Kenya
A letter offer is very important to the buyer since:
- It eliminates the possibility of two buyers getting the same property.
- it makes negotiation easy whereby the buyer’s lawyer does not have to write long sentences to respond to the selling party.
- shows the history of the property you are buying.
When the offer letter is introduced and why
Commercial property Kenya introduces a letter of offer once the client has decided to inspect the property with professionals. This is because the terms and conditions may change, especially if there were undisclosed information to the buyer. For example, there may be a change in the price of the property if a registered valuer produces a report that differs from the initial price. Also, the buyer may consult a professional who may advise for a lower price in case the property is not worth it.
A buyer may opt from signing the agreement without any punishment for violating the terms and conditions of the transaction. Your lawyer needs to bypass the agreement before signing so that you can avoid unnecessary mistakes or regrets. Be careful because some sellers just want money in every way possible.