Form LRA 54 (Informal Charge) is a vital land registration document used in Kenya to create a security interest over land without the complexities of a full formal charge. Governed by Regulation 67(2) of the Land Registration (General) Regulations, 2017, and Section 79 of the Land Act, 2012, this form formalizes arrangements where a borrower (Chargor) pledges their interest in land to a lender (Chargee) to secure a financial obligation. This document is jurisdiction-specific to Kenya and is an essential tool for providing legal recognition to equitable charges created through the deposit of title deeds or written undertakings.
This advocate-reviewed template is available for download on wansom.ai and is specifically designed for lenders (banks, micro-finance institutions, or individual creditors), borrowers (landowners), advocates, and legal consultants involved in secured lending. Unlike formal charges, an informal charge under Form LRA 54 is often used for short-term or flexible credit arrangements where the parties intend to create a binding security interest that can be registered for legal protection and priority.
The downloadable template includes comprehensive sections for the Title Number, details of the Chargor and Chargee, and the Principal Amount secured. It also captures the Borrower’s details if the lending secures a third-party obligation. Key legal protections are embedded within the form, including an acknowledgment of the Chargee's remedies under Section 90 of the Land Act and a warranty that the property is free from other encumbrances. The document must be executed as a deed, requiring colored photographs, ID/Passport numbers, and PIN numbers for both parties, alongside a Certificate of Verification under Section 45 of the Land Registration Act. This legally compliant, ready-to-use template ensures that informal security arrangements are properly documented and enforceable under Kenyan law.