Description

CONVEYANCING

Question One

Rose and Phillip Mutuku of P.O Box 2460-00100 Nairobi wish to buy a house from Alfred Mutua of P.O Box 263-00200 Nairobi. The house is located in Ngong Area and has a Title Deed Number Ngong/Ngong Hills/14. The title has a lease hold period of 99 years from 1970. Alfred used to pay rent and rates to the Kajiado County but has not made any payments since 2013. There are no encumbrances against the title. The house is to be sold with all the furniture contained therein. The entire property measure is 0.5 hectares. The parties have agreed on the following terms:-

• Purchase price shall be Kshs. 12,000,000.00. A deposit of Kshs. 2,000,000.00 shall be paid upon execution of the agreement.
• The Mutukus shall take up possession of the house upon payment of the deposit.
• The balance of the purchase price shall be paid within 30 days as the Mutukus have the money readily at hand and require no financing.

Both parties have approached you to handle the entire transaction on their behalf. The only issue is that Alfred is leaving the country next week and will not be available to sign any documents for the next 6 months. He however wants his son, Junior, to handle all issues arising from the sale and sign any documents required to complete the transfer.

1. Advise Alfred on the document he will require to effect his wishes to the transfer and draft a sample for his approval and execution. (8 marks)

• Advise Alfred on the documents he will be required to provide for the transaction to be completed other than the Original Title Deed, Signed Transfer and Identification documents. (2 marks)

1. Draft a Sale Agreement for the parties taking into account the special conditions requested by the parties. (15 marks)