COUNCIL OF LEGAL EDUCATION. os Be EXAMINATION FOR ADMISSION TO THE ROLL OF ADVOCATES. MONDAY 24 JUNE 2024, DURATION: 3 HOURS Instructions to Candidates: (@) This paper contains Five (6) printed pages including the cover page, with a total of Six questions. (©) Candidates MUST answer FIVE (6) questions. (© Question ONE is compulsory and carries 20-marks, (@)_Allother questions carry 10 marks each, (©) Answers MUST be supported by relevant case law and statutory provisions where required. PLEASE TURNOVERQUESTION ONE Hamét is en only child. “His mother died 5 years ago and his father died last year. Hamisf has in his: possession his patents? death certificates-25 well as a letter from his area chief confirming his parents* deaths as wall as the fact that he is an only child, Hamis calls on your chambers to consutt and gives ‘you the Following informatio f. Hamft’s father owned a commercial building in Naicab CBD popwlarly known as Neus Kazi Piaza fi, The property comprises shops, restaurants and offices, fii. The titles in the name of Hamist’§ deceased father W. Title details are: ~ UR, 2007257200 LR 2001856 “Tenure is leasehold for 50 yeats from 1# January 1975 ‘There kn Create of Tle onder the Repitaton of Tes AC [esp 281] on rep ‘» Land Rent fs peppércorn {if demanded) '# Rates are payable ts the Haiobi County Government. Haris informs you that he has a cash purchaser for Uie propefty; oné Jima, who ls.ctferigarvéry good price bat the intending purchaser has threatened to withdraw tom the sale upon learning that the property is tn-a deceased person's.name aid thacit has only 5 years before the lease expires. Hamisi fas brought Juma along and both now seek your advice on the followings a) Hamisi argues thatas anconly child, he has an automatic right to the property and canseall without. ‘pediment. With reference to statutory provisions, advise Hemisl and Suma (2maric) b) What ts the process requlred to transmit tie property to Hats legally? (mars) ©) Does Hamiét have any fogal recourse on the fact that the lease has 5 years t6 expiry? What legel/statutory provisions would-be of assistance ta him tn this regard? (S.marie) ) What procedure (if any) ts provided in conveyancing law and practice to cure the expiry of the « tease? {3 marks) €@} Assuming that Hamist is able to résolve the Issues of transmission ofthe tile ta his name and the: expiry of the lease, advice Juma ont ~ te 5. The prectes of gale sind heir you will structure the sale/purchase process to protect the intetests of both the vendor and purchaser in the process (4 marks) ii ‘What are the clearances and consents that will be required fram the vendor ih this erticuler case bearing in mind the title details provided above? ‘G marks} fii. Whatare the respective tax abligations to be borne by each of the parties? (2 marks) Page Zof’s.QUESTION TWO. {Yehuinbarkchas. appravedta loan factlity in fayour of Pete Company Limited, The-proposed security 1s a {wit house conpried iam lgaseby Fartnhouse Lined. fee lat ouk ta several tenants, The proses © ‘lso changed in favour of Capital. Bank... UchumiBank is hesitant to accept the proposed security wade i drained advocate, adi Uchuint Benk on the practicability of taking the proposed Sptutity, the relevant approvals required for the securitization as well.as the requited formatities "ufo mie the seciiity enforceable, (s marig} bj Advien and:explain to Uchumi Bank at Yeasi two (2) other securities thot the Bank can request .-sfrobi the borrower's company: © {2 marks} » +0) Sherionths ‘after disbursemieit, the-borrower 1s unable to: continue renattting the monthly instalments, This & after the sald property was auctioned by Capital Banke for a similar defaule n ‘allthe proceeds vere utitzed to partly pay the Mist lender's loan, Leaving.2 shortfall which te Uchumt-Bankon -the- available: remeidy/remedies in the Dank: decided to write-off. advice circumstances and why it should settle Tor the same: (4 marks} ‘QUESTION THREE, dabali:owns's. 4 acre-parcel.of land in Ukawala area, Nairobi. It fronts.the ‘Eastern by-pass where:there has:beeitexponential grawth, of Commetcial- enterprise. aind. Jabali wants to establish a petrol service satarion Gepreperty debe forme yu take recent) approached ons of te major icone: for gfranchsebnt the legal officer of the alt company declinac and withput-elabaration said that Jabali's. {Hl was not suftable.jn,tenure or ser... Jabalt hands you-the ttle documents where you establish: ~ 4h... Title No. 4s Nairobi/Utawala Black 2/1700 then registered under the Registered Lands det “S ICAB.ADOL vihich has now been repealed: : wih Senet ieaseholg From the Gi trhintent of Kenya for a term of 50 years from 4 July 1977 “an 3 ny fi “Anviial rents Wai: 94 Gena) ~The lease from the Government of Kenya in ‘condition 5. provides that the premises shall only bé-used for a'single dwelling house {excluding a guest house) * dabalf now'steks your advice 4), What did the’ oll compsins legal offiger.miagn When she sud that the tenure: and user af the "ogi was saaaey¢ Se : Gout) >). Nitheeference to statutory and legal proysions, explain in detal the processes that Jahali has + Mlngertake cure the promanea! nie aes ‘t@ marke) ©) Jabali wanders. why the goverrimerté has'to complicate tand ownership by. ksuing teases for a + Umited duration and you mention that it has to. do with the. government wanting to retain teversionary rights. Explain the concept of reversion with veference to teasehold tenure on goverriment land. . (marks) Page S0fS‘QUESTION FOUR, ‘Your client Janet seeks ati urgent appointment in your chambers. Upon meeting you; she informs you that she has taker’ interest in a property offered for sale along Waiyaid Way near Kangemi where she wants to set up a Patrol Service Station and a comenience store, The same is next to a huge-gated community development with-over 200 households and in her assessment, the business opportumity ‘= jinmense. Janet further discloses that she has negotiated a good price well below market price and that she stands to gain altest Kshs, 10 milion {n savings on the purchase price in addition to the investment opportunity arising. She, therefore, wants to enter into an tmmediate sale agreement to be signed the same day of at worst the next day and she-furtlien discloses the following information cs itt, i “The owner of the property i a widow who unfortunetely fs currently in India undergoing: treatment for an undisclosed aitment ‘The sale is meant to finance the treatatent cost-and the:sale agreement wauld be signed by the widow's son ‘As condition forthe sala, the verdor fequires 50H of the purchase price; as a deposit, be ‘wired to her account direetly as soon av the son signs the sale agreement ‘Unless the money is paid within 3 days, the deal woutd be cancelled, Piease advise Janet on the following: a b o 9) What due diligence measures would you undertake in respect of the:proposed sale? (3 marks) ‘What tegal instrument woutd you require from thé vendor to ehable the sdn transact on her behali? What steps would be requited to validate that instrument? (@ marks) ‘What is Your advice:to Janet in respect of the coridition to pay 50% of the purchase price directly to the vendor upon execution of the sale sgraément? Please explain.yaur answer. (3 marks) Before Jenet (eaves you call your clarcto Instruct him on the uigent search requtred on the title bt he feminds you that the land registry concerned has been ordered closed for 3 weeks for ‘audit by. the government and jt will not be possible to obtain the search within the timetines contemplated by Janet. You client cannot fmagine losing this deal. What is your advico to tenet? @ marks) QUESTION FIVE a) *) Compare and contrast a transfer of an interest in land to a transfer of charge. What are the tax ‘implications in both transactions? (4imarks) Patel & Jaelare husband and wife. They own ai property in Langata shopping contro beng LAR No. 209/1010. ‘The property is charged for a loan of Kshs. 40 million, The intended purchaser's buying the property for Kshs: 60 million throigh a bank lan of Kshs. 50 million. Calculate the stamp duty payable i The Ditcherge i, The Transfer ffi, The Charge. Show workings Unfortunately, Patel dies before the transaction is concluded. The purchaser is still willing to.compiete the transaction, Advise Jnel.on how to proceed (S.marks) (3 marks) Page 4 of SQUESTION Six 9) idustriat Parc Limited ‘sadvacates have forwarded youra draft lease for review.on behalfof your ‘iznts, the tenants. The tease is for a commercial property. Discuss at least pertinent cimes ‘that you must ensure are in the lease document prior to execution by your client. {6 marke), ') Describe your role had you been retained by the lessor in the transadtion (iarks) Page Sof S.BEST PERFOMED£ E ' i i i COUNCIL OF LEGAL EDUCATION EXAMINATION FOR ADMISSION TO-THE'ROLL OF. ‘ADVOCATES UNIT cove: [ATE TE REGISTRATION NUABER: © INSTRUCTIONS TO ‘CANDIDATES - 1 rears lt ce, Subject ofthe Exanination,Adisson Number and Daten the spaces Provided. The admistion numer should be as it ‘Appears on the Examination Card, 2.’ Dé not-write your name ariywhere in this booklet. ° + 3. Attempt each question on a fresh page'of the booklet, an additional Booklet is used, it MUST be fastened atthe END of this booklet. °, 5,, Insert in the column headed ‘Question lumber’ the numbers of questions ariswered in the ‘order In Which you have hem. ‘6 Kindly ensure your handwriting fs LEGIBLE.* REGISTRATION NUMBER: | | White on both sided of the paper Questions mune BP namin Dateeie C PE Tile Ge gy dd Act ana t pioddes k Aipesdva _o Lend those ‘easertaston | | ! To Tewcerion [al Atibeace at “M_land_ | tI atREGISTRATION FUMBER: Write on both sided of the paper Questions mand amar i | sess 1D Ronawal a _loaroksidl poe Pty 2 bs Lebwes ” I he aed et Coe) paddler Te owe —y recoucel > lopse te ee fal: | eel ape nd om Nore | Whe He leur Ta een nro nS. te ths eee t S as die des 7 pe 2. afReacts | Questions al APO. ‘Write oa both sided of the paper OY te lowe ele te fee YT Pwrendonedl eno! T ono ted) To Youd oneniaiin__efOrop treed ie Balt ele _be. 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Bane. 222M INSTRUCTIONS TO CANDIDATES. 1. Enter the Unit code, Subject of the Examination, Admission Number and Date in the spaces brovided. The admission number should be as it appears on the Examination Card, —_ 2, Donot write your:name anywhere in this booklet, 3, Attempt each question ona fresh page of the booklet, ‘4 fan additional bookiet is used, it MUST be fastened at the END of this booktet, + 5. Insert in the column headed ‘Question Number’ the numbers of questions answered in the order in which you have attempted them. 6. Kindly ensure your handwriting is LEGIBLE.“Write on both sides of the papere ‘REGISTRATION NUMBER: ‘White oa both sides of the paper Questi008 win cssinmninnnne Dew re | “atid a veoh ol I, eet shellee owt n ‘Write on both sides of the paper Dasari HE) Had \ bec eebstnedl by, the lect to Yh Frantathcny ole olde heen: Dros oppor Nenu d, Lal a Meo eps