KRA Sale Agreement: A Comprehensive Guide
If you are planning to buy or sell a property in Kenya, you need to be familiar with the KRA Sale Agreement. This is a legal document that outlines the terms and conditions of a property sale and purchase transaction. The KRA Sale Agreement is a mandatory document that is required by the Kenya Revenue Authority (KRA) when you are buying or selling a property. In this article, we will provide you with a comprehensive guide on the KRA Sale Agreement.
What is a KRA Sale Agreement?
A KRA Sale Agreement is a legal document that outlines the terms and conditions of a property sale and purchase transaction. It is required by the Kenya Revenue Authority (KRA) and is used to calculate the stamp duty that is payable on the transaction. The KRA Sale Agreement is also used to transfer ownership of the property from the seller to the buyer.
What are the elements of a KRA Sale Agreement?
A KRA Sale Agreement should include the following elements:
1. Parties involved: The KRA Sale Agreement should clearly state the names of the parties involved, i.e., the seller and the buyer.
2. Property details: The agreement should include the details of the property being sold, i.e., its location, size, and any other relevant details.
3. Purchase price: The purchase price of the property should be clearly stated in the agreement. This is important as it is used to calculate the stamp duty that is payable on the transaction.
4. Payment terms: The payment terms for the purchase should be clearly stated in the agreement. This includes the deposit amount and the balance of the purchase price.
5. Completion date: The agreement should include the completion date, i.e., the date when the transaction will be completed and ownership of the property will be transferred to the buyer.
6. Conditions of sale: The agreement should include any conditions of sale, such as repairs that need to be done before the completion date or any other conditions that are agreed upon by the parties involved.
7. Signatures: The agreement should be signed by the seller and the buyer, as well as any witnesses who are present.
Why is a KRA Sale Agreement important?
A KRA Sale Agreement is important for several reasons:
1. Legal protection: The agreement provides legal protection for both the seller and the buyer. It sets out the terms and conditions of the transaction, which can help to prevent disputes from arising later on.
2. Stamp duty calculation: The KRA Sale Agreement is used to calculate the stamp duty that is payable on the transaction. This is an important aspect of the transaction as failure to pay stamp duty can result in penalties.
3. Transfer of ownership: The KRA Sale Agreement is used to transfer ownership of the property from the seller to the buyer. This is an essential step in any property sale and purchase transaction.
Conclusion
In conclusion, a KRA Sale Agreement is a mandatory document that is required by the Kenya Revenue Authority when you are buying or selling a property in Kenya. It is essential to understand the elements of a KRA Sale Agreement to ensure that you are protected legally and that the transaction is completed smoothly. If you are unsure about any aspect of the KRA Sale Agreement, it is recommended that you seek the advice of a legal professional who specializes in property transactions.