Question: How do you drive your car? Answer: However you want to, within the confines of the law.

The Principle: Willing Buyer, Willing Seller

The Application: In the same way, although the standard transaction period has become 90 days between the date you sign the Sale Agreement and the Completion Date, you can adjust this.

Does 90 days work for you? If not, agree between parties and amend your transaction period accordingly. If you are selling and you wish to be more flexible, ensure your Advocate is aware that you are OK with a longer period of, for example, 180 days (6 months). It is also not uncommon to find transactions closing in shorter timeframes such as 30 days, in the case of quick cash buyers.

1.Property Search

The Buyer begins with the time-intensive work of property search; looking for a suitable property to purchase. A reputable Agent, one with experience, can assist you in this endeavour.

We do the heavy lifting here, taking time to understand what you are looking for. Then our collective feet hit the street, hunting for what will warm your heart.

2.Site Visit

The Buyer should then make arrangements to visit the property and satisfy themselves that it meets their desired criteria. Is this what you are looking for?

3.Make an Offer/ Express your Interest

Once the property has been identified, the Buyer makes a formal expression of interest/ offer, subject to contract, detailing their offer price, terms of payment and Advocate’s details.

4.Letter of Offer (subject to contract)

If the expression of interest is accepted by the Seller, then the Agent prepares a Letter of Offer confirming the salient details of the agreed transaction. This is then signed by both parties and acts to formally instruct the legal teams of both parties.

Note that the Letter of Offer is subject to contract. This means that the same terms will be reflected in the Sale Agreement which will become the legally binding contract between the Buyer and the Seller. The Letter of Offer is usually valid for 14 days. The two weeks allows the Buyer sufficient time to conduct due diligence and review the draft Sale Agreement.

Some Letters of Offer demand that Buyers pay a requisite down payment/ commitment deposit of at least 10% of the purchase price immediately upon signing it.

Should the offered deposit be more than 10%, the top-up deposit would be due for payment upon signing of the Sale Agreement by both parties.

Note: A signed Sale Agreement means that the Buyer is satisfied that the property meets their needs, that due diligence is satisfactory and that the terms in the Sale Agreement work for them.

Copies of the Buyer’s ID and valid KRA PIN Certificate may also be required with the acceptance of the Letter of Offer.

Part 4. It is now time to conduct your due diligence >>