Real estate agents understand the laws related
to property transactions and are relied upon during the process of
buying or selling properties. As the agents are not the owners
of the properties, they need permission to act as an agent for the
property owner or buyer.
An authorization letter is a document that
gives someone else the authority to conduct business, carry out
transactions on behalf of someone else.
Buyers and sellers should provide
real estate agents with letters that authorize the real estate agent to act on
their behalf. Property Authorization letters need to be written carefully to
prevent any miscommunications. While sourcing letters should be provided
by the principal, you can assist them by preparing one for them to sign. Below
is a guide to prepare a sourcing letter.
Related: Letter of
Authorization to sell real estate.
Start with Personal Information
Type your full name and contact
information, including your email address, left justified with one information
item per line. Type the full name and contact information for the customer
as well.
Ensure there is a date on the letter.
State Your Intention
After you have identified the parties,
identify the intention. This is done by having this as the subject line and
have this in bold or underlined.
Detail the Permissions
List the specific tasks for which you
are responsible for using bullet points or numbers to separate each
item visually. Go into as much detail as necessary to make the scope or
specific limitations of the tasks clear. For instance, don't state a term
like source for a house in Kitengela instead, be specific like source for a
3-bedroom house all ensuite, with a detached SQ, within 1 kilometer of a tarmac
road and at most 3 kilometers from Kitengela, priced between 14M to 15M
inclusive of stamp duty and all transfer costs.
Remember to mention the duration of the
authorized duty and the reason should be devoid of any misinterpretations.
Create a Closing
Close with official words such as
"Sincerely," and type your client's full name. Try to keep
your the letter short, precise and to the point while ensuring
no detail was left out
Finish with a Signature
Present the letter to your client for
review, ensure its signed and make a copy for your records.
Also Read: Commissions
to charge for real estate transactions in Kenya.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Example:
To,
John Doe
P.O. Box 1234
Nairobi
Tel 0123456789
From
Jane Doe
P.O. Box 4321
Nairobi
Tel 987654321
Date: 12th of May 2022
Subject: Authorization to source
property
Dear John,
This letter is in regards to request
to source for property that fits this description
{...........................................}. We estimate that the price range
for such property shall be within a budget of
{..............................................}.
Your role shall include:
1...................................................
2....................................................
While your role relates to finding the
appropriate property(ies) as detailed above, due diligence shall be done by my
legal team on such properties as shall be provided by you.
In case a property sourced by you meets my
expectations and those of my partners, we shall pay you a commission of
............................. payable as
{.......................................}.
This authorization is to you and is not
assignable to any other party without my express approval in writing. This
authorization is valid from the day of signature and shall last for a period of
{.......................................................}.
For any further clarification you can call
me on my mobile number 123456789 or email me on [email protected]
Yours Sincerely,
Jane Doe
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