Motor Vehicle Sale Agreement KRA: What You Need to Know

Purchasing a motor vehicle is a significant investment. It is essential to ensure that the process is legally binding and that both the buyer and seller are fully protected. One of the essential documents needed to seal the deal is the Motor Vehicle Sale Agreement KRA.

What is the Motor Vehicle Sale Agreement KRA?

The Motor Vehicle Sale Agreement KRA is a legally binding contract between a buyer and a seller of a motor vehicle. It is a document that provides proof of the sale and purchase transaction, outlining the terms and conditions, including the purchase price, payment terms, and warranties.

The KRA aspect stands for Kenya Revenue Authority, the government agency responsible for collecting taxes and ensuring compliance with tax laws in Kenya. The Motor Vehicle Sale Agreement KRA is a mandatory requirement for the transfer of motor vehicle ownership in Kenya, as it captures the relevant taxes and levies payable.

Why is the Motor Vehicle Sale Agreement KRA important?

The Motor Vehicle Sale Agreement KRA is an essential document as it protects both the buyer and the seller. For the buyer, it ensures that they are purchasing a vehicle that is legitimately owned by the seller and that all the relevant taxes and levies have been paid. For the seller, it provides proof of the sale and protects them from any legal liabilities that may arise from the transaction.

Additionally, the Motor Vehicle Sale Agreement KRA is an essential document for the transfer of ownership with the Kenya Revenue Authority. Failure to produce this document may result in the transfer of ownership not being legally recognized.

What are the requirements for the Motor Vehicle Sale Agreement KRA?

The Motor Vehicle Sale Agreement KRA must include specific requirements to be legally binding. These include:

1. Identification details of both the buyer and the seller, including names and ID numbers.

2. Details of the motor vehicle being sold, including the make, model, year of manufacture, and registration number.

3. Purchase price and payment terms, including the mode of payment.

4. Proof of ownership, including a copy of the logbook.

5. The seller`s declaration that they are the rightful owner of the motor vehicle and that there are no outstanding financial obligations.

6. A declaration of any warranties or guarantees provided by the seller.

7. Confirmation of the payment of all relevant taxes and levies, including stamp duty and transfer fees.

Conclusion

The Motor Vehicle Sale Agreement KRA is a crucial document in the purchase of a motor vehicle in Kenya. It is essential to ensure that all the necessary requirements are captured in the agreement to avoid legal disputes and ensure that the transfer of ownership is legally recognized. Both the buyer and seller should understand the importance of the document and ensure that it is properly executed before finalizing the sale.