In the previous article, I discussed the necessary due diligence one needs to take while carrying out any land transaction. This is a follow-up article to the previous one. In this article, I will discuss the contents of a good land sales agreement. It is paramount for you as a buyer or seller to know the contents of a good land sales agreement. This knowledge has several advantages that include the following;
First of all, the agreement acts as a protection to both the purchaser’s and seller’s interests and ensures that both get what they rightfully deserve without getting conned. Secondly, in principle, the sales agreement should seek to fully protect the rights and interests of both parties because if one party fails to abide by the contract terms the other party can take legal action to recover the damages caused. The agreement acts as a piece of evidence when seeking remedies for breach of the stated terms of engagement.The following are some of the features that should be at a bare minimum in a land sales agreement:
Identity of both the buyer and the purchaser: A good agreement should have Names and signatures of parties to the transaction; the buyer and the purchaser have to append their signatures and full names onto every page of the agreement.
Land location. The agreement should explicitly state where the land is located, the Village, Parish, Division/Sub-County, County, City, and District.
Land size: The agreement should clearly state in both words and figures the size of land being bought, as well as what is on the land such as houses, trees, crops, etc., and state whether they form part of the land being sold.
Date of the sale: This should include the day, month, and year in full. It is important to note the date the transaction was carried out.
Boundaries and neighbors to the land being sold: It is a good practice to have the neighbors (names and signatures) to the plot of interest listed in the agreement. This is especially important for untitled land. The folio, volume, plot, and block number should be included in the agreement in the case of titled land.
Tenure Type: The type of tenure should be indicated in the agreement.is the land in consideration customary, freehold, or Mailo tenure? It is important because different tenures have varying requirements and terms of engagement.
The amount of money involved: The price at which the property is sold is very important and must be stated. The amount of money should be stated clearly out in both figures and words. If there are any other means under which the land is being transacted it should be cleared stated in the agreement. If the total sum is being paid in a lump sum figure, it should be made known in the agreement. If there are periodical payments to be made, it should be stated with the entire details.
Spousal consent form: if the land is owned by a couple, ensure that you get consent from the other spouse before proceeding with the land transaction. According to Section 39 of the Land Act, spouses must give their consent to all land transactions on family land. As a potential land owner, you need to be aware that when making any transaction involving family land, spousal consent must be secured in writing. The spousal consent should be included in all the documentation about that land transaction. If not, the land transaction would not be legally binding; it would be null and void.
Certificate of translation where either or both of the parties are illiterate: In a land transaction where either the buyer or seller of the land is an illiterate, the person writing the agreement for or on behalf of the illiterate must indicate his or her full name and address as the writer of that document otherwise he or she commits an offense, according to Section 3 and 4 of the Illiterates Protection Act, Cap 78. The Act also requires that before the illiterate appends his or her name or fingerprints, the document has to be read over and explained to the illiterate so that he/she fully understands what has been written
Outline how non-performance of the agreed terms of the agreement is to be handled: ideally, someone’s word should stand but we live in a fallen world. People usually do not keep their end of the bargain due to a variety of reasons. It is prudent for you to include some clauses that in case one party fails to fulfill their obligations; one can seek ways of getting remedies
Names and signatures of the witnesses: The people who witness and testify to the transaction have to be present when the sale is being concluded to append their signatures as witnesses. The witnesses must also witness on each page. Care should be taken to involve all the affected parties in the transaction. It is a good practice to have either a local council official or lawyer to be part of the transaction.
They usually append their signatures and official stamps on the agreement. Several copies of the sales agreement should be made for the various parties to the agreement. Each party especially the vendor and purchaser should be able to have copies of the agreement. All copies should have the same information and be fully signed by all the parties present. The above features are not exhaustive but give you a starting point when you are involved in a land transaction whether as a buyer or seller.
The author is a Land surveyor and Author of a book: Buy the land; How to make a fraud proof land transaction in Busoga
