How to Get a Letter of Offer and What It Should Contain
A letter of offer (also called a plot offer) is the formal document a seller or developer issues to a buyer to confirm terms of a proposed land sale. It’s not the final transfer document, but it’s a critical milestone: it shows commitment, locks in basic terms, and starts the clock on due diligence and deposit payments. Here’s a clear, SEO-friendly guide to getting a strong letter of offer and what every buyer should expect to see inside one.
1. Why a letter of offer matters
- Acts as an initial written record of the seller’s terms and price.
- Protects both buyer and seller by clarifying obligations before the sale agreement.
- Often required by lawyers and banks before lodging searches, valuations, or issuing mortgages.
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2. How to get a letter of offer; step by step
- Express formal interest in writing. Contact the seller or the agent and ask for a written letter of offer. Keep records (email, WhatsApp messages).
- Provide buyer details and proof of seriousness. Sellers commonly request a copy of the buyer’s ID, KRA/PIN (or national equivalent), and a refundable reservation deposit to generate the offer.
- Request full seller documentation up front. Ask for the title deed / allocation letter, recent rates clearance, encumbrance certificate, and survey plan before accepting the offer.
- Get the letter emailed and signed. A scanned signed copy is acceptable for initial purposes, but insist on originals for the final sale.
- Forward the offer to your conveyancing lawyer. Lawyers will check the legal sufficiency of the letter and convert key terms into the formal sale agreement.
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3. What a good letter of offer should contain (must-have clauses)
A robust letter of offer should be concise but include these essential elements:
- Parties: Full legal names and contact details of buyer and seller.
- Property description: Parcel number, survey plan, size, and exact location (including GPS/landmark references where possible).
- Sale price and payment terms: Total price, deposit amount & deadline, balance payment schedule (bank, M-Pesa, escrow instructions).
- Reservation period: How long the seller will hold the plot exclusively for the buyer (e.g., 14 days) and terms for extending that period.
- Conditions precedent: What must happen before the sale proceeds (title search clear, rates clearance, planning approvals, NEMA clearance if applicable).
- Warranties: Seller’s confirmation that they have good legal title and there are no undisclosed charges, disputes, or pending compulsory acquisitions.
- Default & remedies: What happens if buyer or seller defaults (forfeiture of deposit, extension, termination).
- Costs & taxes: Who pays stamp duty, registration fees, lawyer fees and any agency commission.
- Signatures and date: Signed and dated by the seller (or authorized agent/developer).
Keywords: sale agreement, title verification, reservation agreement, deposit terms.
4. Helpful extras (optional but useful)
- Escrow instructions if a large deposit is required.
- Timeline for transfer (expected dates for sale agreement, payment, and lodgment at Lands Registry).
- Plan of the plot attached as an appendix or link to the survey plan.
- Contact for utilities (if the plot has water/electricity connection or pending approvals).
5. Red flags to watch for
- Seller refuses to provide a title deed or recent land search.
- Vague property description (no plot number or survey plan).
- No clear deposit/forfeiture clause – ambiguous refund terms.
- The seller pressures you to pay full price before checks are complete.
If you spot any of these red flags, pause and consult a conveyancing lawyer immediately.
6. Quick checklist before you sign a letter of offer
- Seller identity & title verified
- Reservation deposit amount & escrow arrangements clear
- Conditions precedent listed and realistic timelines set
- Costs and taxes allocation specified
- Lawyer has reviewed the offer
Final word
A well-drafted letter of offer for land protects your money and time by documenting the deal’s essentials before you commit to the full sale agreement. Treat the offer as a legal stepping stone. Verify the title, insist on clear deposit terms, and involve your lawyer early.
