Description

CONVEYANCING

QUESTION ONE

Maria and Bill Mageti of P.O. Box 123 Nairobi are interested in buying a property from Ms Savi Husula of PO. Box 296 Kiambu. The property consists of a modern style farm house and an adjoining farm with the necessary infrastructure to grow mushrooms and rear donkeys for sale. The property measures 4.5 Hectares and is located in the picturesque Kiambu farming area. The couple intends to buy the entire property i.e. the house and the farm infrastructure. The purchase price shall be Kenya Shillings The parties have agreed that a deposit of Kshs. 40,000,000/= shall be paid upon execution of the agreement and the balance to be paid within 45 days. The Title Deed with the property number, LR/Kiambu/Block 1, is a freehold. But the Kiambu County Government has been demanding rates for the same. However Ms Husula has not paid since 2015.

Both parties want you to act on their behalf. Upon visiting your office to engage your services, a number of issues arose. First, both parties were informed that they would need a Land Control Board consent. They however do not wish to obtain the said consent and want to proceed with the transactibn without it.

Second, Mr. Mageti is very anxious to complete the transaction as fast as possible. Money is not the object for him. His commercial lawyer has told him of something known as “time is of the essence”. He wants you to incorporate the same in the sale agreement.

Advise the parties on the following:

Explain to the parties what a Land Control Board consent is. (2 Marks)

• Explain what would be the effect of not having the consent to the proposed transaction.

(3 Marks)

• Explain to the parties what the term “time is of the essence” means and the effect of having such a clause in the agreement. (3 Marks)
• Advise Ms Husula on what other document she would need to supply to the Magetis to complete the transaction. (2 Marks)

1. After your engaging advise, the parties have agreed to obtain the consent and include the “time is of the essence” clause. Together with all the information previously provided, draft a sale agreement for them to

execute.                                                                                            (15 marks)