Thomas Cyrus Wachira v Joseph Muigai Kamau [2017] KEELC 1570 (KLR)
The bottom line
#A Kenyan court confirmed that if you buy land, pay in full, and take possession, the seller holds it in trust for you until transfer.
What this practically means
#Executive summary
#Key legal issues
#Existence and validity of the agreement of sale
A valid agreement of sale existed; the Defendant admitted the sale and receipt of the full purchase price
The Defendant admitted at paragraph 2 of his defence the existence of an agreement of sale dated 2.9.2008 for a 100x100 feet portion of Limuru/Rironi/4487, and admitted receipt of the full purchase price. The defence argument that the agreement was voidable for lack of remedies clause was rejected as superfluous. The claim went uncontroverted after the Defendant failed to comply with order 11 directions and did not attend trial despite proper service.
Constructive trust and overriding interest
The Defendant holds the suit property in trust for the Plaintiff
Relying on Macharia Mwangi Maina & 87 Others v Davidson Mwangi Kagiri, Mutsonga v Nyali and Kanyi v Muthiora, the court held that equitable doctrines of implied, constructive and resulting trusts apply where a registered proprietor has received the full purchase price and put the purchaser in possession. The Plaintiff's occupation created an overriding interest under section 28 of the Land Registration Act binding on the land.
Effect of the alleged summons for revocation of grant in HCCC No. 799 of 2009
No evidence was produced of any restraining order; summons for revocation does not invalidate the Plaintiff's claim
The Defendant claimed his ability to transfer was hampered by summons for revocation of grant, but no order was produced in evidence. The court noted that summons for revocation means there is no order, and no evidence was led showing any difficulty in transferring the land. The assertion that the Defendant transferred parcels to third parties as late as 2015 was not controverted.
Damages for deprivation of title
Damages declined for failure of proof
Although pleaded under Article 23(3)(e), the Plaintiff led no evidence quantifying the loss allegedly suffered. Applying the principle that he who alleges must prove, the court declined to award damages under this head while granting the declaratory, transfer and injunctive relief.
Legal principles established
#- A vendor who has received the full purchase price and put the purchaser in possession holds the property under a constructive trust
- A purchaser in possession has an overriding interest under section 28 of the Land Registration Act
Court orders
#- 1.A declaration that the Defendant holds LR No.4885/122 (4885/111/12) also known as Plot 'C' measuring 100x100 feet in trust for the Plaintiff
- 2.The Defendant to forthwith transfer or cause the transfer of LR No.4885/122 (4885/111/12) also known as Plot 'C' measuring 100x100 feet to the Plaintiff
- 3.In default, the Deputy Registrar to sign all necessary documents effecting the transfer and the Defendant to surrender the Original deed plan No. 315705 and Title Deed for Kikuyu/Rironi/4487
- 4.A permanent injunction restraining the Defendant from alienating, selling, charging, being on, or interfering with the Plaintiff's title, occupation and quiet enjoyment of the suit property
- 5.The Defendant to pay the costs of the suit
- Jurisdiction invoked
- Not expressly stated; original civil suit under the Civil Procedure Act and Land Registration Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Thomas Cyrus Wachira v Joseph Muigai Kamau [2017] KEELC 1570 (KLR)", Case Analysis (2017). Not stated in the judgment (suit filed 4.2.2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/1570/eng@2017-09-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.