SALE AGREEMENT COMMON TERMS
A supplementary agreement to an original sale contract covering points agreed
to afterwards. It is a separate agreement in its own right and, if it
contradicts the original in any way, it is presumed to overrule it.
The basic contract of sale and purchase between a willing seller and buyer. No
matter what the parties have agreed to verbally no contract exists until an
agreement of sale is completed and signed by both parties.
A condition in a contract obliging a seller to give a defaulting buyer written
notice to remedy his breach of contract within a specific period (usually seven
days) before he can cancel the sale.
These are the restrictive conditions limiting an owner's rights which are
recorded on his title deed to a property. They cover matters such as mineral
right reservations, servitudes and building limitations.
A statutory right, recorded in Section 29A of the Alienation of Land Act,
giving a buyer of a residential property costing R250 000 or less the right to
withdraw from the sale within five days of making a written offer.
A certificate issued by a qualified electrician confirming that the
installation on a property from its supply point is safe. Every buyer has to be
in possession of one once he takes transfer of ownership.
Known in common terms as a Borer Beetle Certificate. A certificate required by law in some coastal provinces to be obtained
before transfer of a property confirming that its structure is free of wood
borer or termite infestation.
A condition in a sale contract giving the seller the right to cancel it if he
obtains a better offer from another purchaser. It is usually inserted when the
first buyer is given time to sell his own property first.
These are attachments to a home which are deemed to permanently belong it, and
may not be removed by the seller when he vacates the property.
Written undertakings issued by registered banks guaranteeing payment of part or
all of the purchase price on registration of transfer. They are furnished to
the transferring attorney.
A savings account or other short-term investment opened by an attorney or
estate agent to invest any deposit paid by a buyer. The interest accruing will
accrue to the buyer on transfer.
Most sale agreements contain a clause providing that, should either party take
the other to court for any alleged default, he may do so in a Magistrates Court
even though the amount in dispute may exceed its normal jurisdiction.
A legal expression emphasizing a final cancellation or lapse of a sale
agreement. It puts both parties in the position they were in before the
agreement was signed and leaves each without obligation to the other.
A buyer's right to take personal occupation of a property before transfer takes
place. A rental, agreed to in advance between the parties, will be payable by
the buyer until registration of transfer.
A document setting out the proposed purchase price and conditions on which a
buyer is prepared to purchase a property. It will be submitted to the seller
and, once he signs it, it becomes a valid agreement of sale agreement.
A stronger right than occupation which usually only passes on registration. It
entitles the buyer to receive all rentals paid by existing tenants while
obliging him to pay all assessment rates.
This is the definition of the property sold in a sale agreement. It can simply
be its street address but should record its erf number and township as
described in the owner's title deed.
An expression used by estate agents to describe a sale contract which will only
become unconditional between the parties if and when the buyer sells his own
property. A time period of sixty to ninety days is usually allowed.
A provision in a contract suspending its operation until a specific condition
is fulfilled. A clause stating
sale will only be confirmed if a mortgage loan is granted is a typical
A Dutch expression meaning that a property is bought "as is" with all
its patent and latent defects. A Seller can still be held liable for latent
defects known to him which he fails to disclose to the buyer.
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