
Visibility: Public
Uploaded by: CARNVERSATIONS
Uploaded at: 2024-07-03
Published at: 2024-07-03
Length: 17:59
Views: 4207
Likes: 120
Category: Autos & Vehicles
Description
Our legal expert breaks down everything you need to know about vehicle ownership transfers, paperwork requirements, protecting yourself as a buyer/seller, and more.
Every Wednesday, join Wakili Cedric Magotsi for an informative and engaging look at the intersection of automobiles and legal issues. On "Cars and Laws," we'll explore a wide range of topics related to vehicle laws, regulations, rights, and responsibilities.
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Transcript
you're at home and you're thinking how
am I going to purchase my dream car yet
your bank account does not have enough
money you sit at home you think through it
and you realize how to select by
conversation Soo you reach out to or to
select by conversations and they tell
you not to worry you can actually
purchase your dream Motor
Vehicles buy a higher purchase
agreement join me on this episode of
carsin laws as we take you through the
nitty grees of what you should be aware
of while purchasing your car under the
higher purchase agreement I'll be your
host as always W Cedric
[Music]
mot conversations. Africa is where a
vehicle has been posted you love this
vehicle you want to purchase it you want
to be the owner of this brand new
vehicle
however the monies in your account are
not well enough for you to purchase this
vehicle wholesomely or in one go what do
you do you reach out to AO select my
conversations they tell you you know
what you can actually purchase this
vehicle by high purchase remember our
last episodes the processes or the faces
of purchasing the vehicle contacting the
seller agreeing on a purchase price and
most importantly conducting all the
necessary prep purchase inspections
youve done all that youve met the sale
of this specific Vehicles normally this
happens youve agreed Ill pay a deposit
of this amount then Ill pay the
remaining amount in these specific
installments what do you do next you get
into what is known as a higher purchase
agreement again what do you do next you
get into what is known as a higher
purchase
agreement briefly I'll take you through the
definitions that you'll find them
under the higher purchase business model
the first definition is the higher
purchase agreement what is the higher
purchase agreement the higher purchase
agreement basically in simple terms
means there's one party who owns the
specific Goods these specific Goods in
our situation is this vehicle then
there's another party who wants to hire
or purchase this motor vehicle so the
purchaser who will reach out to the
owner of this vehicle agrees with them
on a specific
deposit and installments that will be
payed over a period of time that being
indicated the owner will hire because
the vehicle is still not the property of
the purchaser the owner will hire this
specific vehicle to the purchaser or to
the hire so property will move from the
owner to the hirer or to the wbe
purchaser for a
consideration of some
currency purchase
agreement the first person is willing to
let this second person hire this car on
the basis that a deposit has been paid
or a down payment has been paid and the
remainder of the sums shall be paid in
subsequent and equal installments over a
period of time however from the owner
to the purchaser
till so ing until the last installment
has been
paid brief breakdown of what a higher
purchase business agreement means the
second
definition is the higher purchase
business what is a high purchase
business
registered so for them they sell
property of
vehicles using as Guided by the high
purchase act and as Guided by the high
purchas
agreement but under the purchase act
as guided as under the high purchase
AG payment the final installments
basically that is what encompasses the
higher purchase business model or the
higher purchase
agreement purchase agreement the first
thing you should do is go to a licensed
higher purchased
agents very
importante agreement is not
licensed so you go to a licensed higher
purchase agent
he or she must have a valid license
confirm recognized as a higher purchase
agents you can now draft the higher
purchase agreement and like the first
agreement we discussed in the first
process of purchase of a motor vehicle
the higher purchase agreement is a
unique agreement in that it has to be
registered where is this High purchase
agreement registered the high purchase
agreement is registered at the register
arm is registered with the register of
high purchase how does this registration
go the high purchase agreement is
drafted agreement with all the contents
down
deposit contract this contract has to be
filed with the register of higher
purchase filing fees for this specific
High purchase agreement pay filing fees
another additional payment that has to
be made is St duty every higher purchase
agreement has to be paid stamp Duty for
so
duty duty receipt
then each of you should have a copy of
the registration fees for this purchase
agreement and the receipt in which the
stamp Duty has been paid again briefly
and repeat for a higher purchase
agreement to be valid it has first of
all to be prepared by a
licensed High purchase
agents who has a valid
license
payment 10,000
LIC by the government of Kenya two high
purchase
agreement with
ofe with the register of purchase filing
fees at the regist office then two
by pay Duty very
important you have a copy both the
seller and the H and
two
payments very important fail to do so
this agreement is illegal its not a
high pchas agreement
some of you are not registered and some
of you once you draw this High purchase
agreement you don't pay St Duty for it
and you don't pay the registration for
it any legal dispute if there arises any
legal dispute and this case is referred
to a court of
law prep agreement and is not a
registered licensed or is not a
registered or a licensed High purchase
agents and two this High pchas agreement
is not registered is not going especially if
you are the owner of this
vehicle
agreement
claim this purchase agreement has
refused to pay the final du to pay the
installments this specific contract
cannot be enforced you might seek other
orders yes part but seeking this orders
under the high Purchase Act I always
ERS you are not a licensed High purchase
agents two the higher purchase
agreement has not been
register is a must
payment so again you don't register the
St Duty you canot have or you will not
have a claim you do not register the
high purchase agreement you will not
have a claim in a court of law you've
gone to a licensed High purchased agent
youve drafted a high purchase agreement
the agreement has been
registered some of the terms the most
important terms that have to be captured
in this higher purchase agreements so
that safety of the business is
guaranteed the few most important
terms that should be included in this High
purchase agreement is the
residency
resc terms where does he or she reside
because high purchas is you put a
deposit youre given this car then you
pay subsequent
installments so as it stands then the
owner the seller of the car stands to
lose if the purchaser disappears with
this car and he or she has not completed
the payments of this specific Vehicles
so one of the most important
terms captured in this higher purchase
agreement is the exact residency of
where the
H
estate kamak road the road the town the
locality is
in thisch agreement failure
to you exposing to
RIS so you must get the accurate
location accurate
residency of the H of this of this
car second
thing get the exact location
very important you get the exact
location of where this specific person
or hire or
purchaser
conducts his
business very important any of those
installments you can go to that specific
location
and so very important these are some of
the conditions that should be captured
in some of the warranties that have to
be there in a
highas so in
case and high purchase wants to relocate
amama wants to change his specific job
AM wants to change his place of business
he has to do a notification which should
been writing to the own of the
vehicle a job from Ministry of Defense
Ministry of Agriculture Ministry of
Finance you have to notify the owner
the agent you
shifting from one position to this to
this other
location you have to notify its a must
and its compulsory for you to
notify the agent the own of this
property the own of this vehicle that
from
from it has to be writing then you share
it with the owner of the vehicle at all
times where the vehicle or the person
who has bought this vehicle and high
purchase is for safety
purposes you can also put car trackers
at all times in this specific vehicle
you can actually engage the car
tracker then you may have a legitimate
claim against a court of law say this
guy stated that he lives in this
specific location but he has
moved payot all at once so
location of
where the car is and where the part is
are very important and should not at any
cost be omitted from the higher purchase
agreement however a higher purchase
agreement is just like any other
contractual agreement this High purchase
agreement can always be
terminated however you cannot just
terminate a high purchase agreement V
terminate any other contractual
agreement first thing you have to know
is that once the hire
hire once the hirer has paid
2/3 of the purchase price am of the down
payment plus
installments and he he or she fails to
pay the rest of the amounts you cannot
actually acquire possession of that
car enforce the payment of the remaining
balance with interests and costs again
comea 2/3 of the part price has already
been paid you can never claim that to be
your this guy has paid 2/3 of the entire
purchase price entire of the entire
higher purchase price
so with interest and cost very important
however a higher purchase agreement can
always be terminated
at any
time however
again and H purchase contract I fail to
comply fail to perform his obligations
of paying the
installments first thing before
terminating the contract you have to
give him notice he notice laim writing
you can never go to a court of
law terminate contract purchase
give him notice in the next one month if
you will not have paid the remainder of the
installments so notice has to be there
notice has to be there very important
you canot
seek
notice now reasons as to why he or she
has not paid his installments as
obligated in the higher purchase
agreement so notice is very
important if you have any questions with
regarding to any higher purchase
agreement that
v you can always feel free get in
touch with us get that specific aspect
of the higher purchase agreement
in our next
episode the first episode to where we
are on our episodes of cars and laws as
always I've been your host
[Music]
0 likes · 3 views · May 19, 2026
A comprehensive guide on vehicle ownership transfers and legal aspects of hire purchase agreements.