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