It is common for most contracts to be completed almost immediately after exchange of documents, hence they are not registered. This article discusses the importance of registering the contract and the circumstances where it is advised.
Registration is advised in circumstances where;
- There is a long gap between contract and completion.
- There is sufficient evidence to doubt the seller’s good faith.
- There arises a dispute between both parties, i.e. buyer and seller.
- The seller has delayed the completion of the contract beyond the agreed date.
In the case of registered land, the contract can be protected by an entry in the Registry. However, it is not necessary to register the contract when the buyer is in occupation of the property as he is guaranteed protection under LRA 2002.
In the case of unregistered land, the contract shall be void against the buyer if it is not registered. This is because the contract comes under Class C(iv) category of land charge. Thus, it is important that registration must be completed against the name of the person who is the owner for time being.
Photo courtesy: Matt Buck
