Sale Of Land Agreement South Africa
If you have any doubts about the validity and commitment of your agreement, contact a real estate lawyer to point you in the right direction. But this is not the end. The additional conditions essential to the sale must also be mentioned in the agreement. These essential concepts are not easy to define, but it must be kept in mind that there is no valid agreement if an essential concept has not been definitively agreed and is left open to further negotiations. When processing the sale of the land, the examples of essential conditions are: the method of payment of the purchase price, the time in which the purchase price must be paid, the suspensive conditions and other special conditions, as well as the date of the occupation and the possible rent of the operation. The method of payment of the purchase price must be clearly defined, as this is an essential clause. In a pre-printed agreement, all unsuperated options must be removed, as a default can nullify the agreement. Parties must determine whether a down payment is payable and when it is payable. If the buyer needs mortgage financing to purchase the property, the amount required and the date on which the financing must be approved must be clearly defined. If these data or periods are not included in the agreement, the agreement is not applicable. A particular condition is also an essential clause of the agreement and the same safety rules apply. The contract is not subject to a particular condition and it is a contractual obligation that can be applied.
An example of a particular condition is that one of the parties has something specific to do with regard to ownership (for example. B the seller must provide approved municipal plans to the buyer). It is necessary to take into account the following: who should do what, when it should be done, as it should be done (not always applicable), and what are the consequences if a party does not act. In today`s modern world, where most people have access to the Internet, it is easy to get a template for a real estate sales contract. However, certain legislative provisions must be respected in order for the agreement between the parties to be valid and binding. If you use any of these agreements, you must ensure that the document complies with South African law. At least the contract must contain a description of the seller and buyer, a description of the property for sale and the purchase price. These are known as the essential conditions of the agreement.
Under Section 2 of the Alienation of Land Act (No. 68, 1981), an agreement on the sale of land must be signed in writing and by both parties (i.dem the seller and the buyer). If the agreement is not written or signed, it is null and void and therefore without force or effect. A suspensive condition is an essential concept and must therefore be set out in writing and clearly in order to avoid any uncertainty. The sale, under the authority of the buyer who manages a mortgage, is a standard carry-over condition. If the event does not occur, i.e. the buyer does not obtain a loan authorization, no agreement is reached.