These two concepts are often confused, even in agents' standard form agreements. possession is risk; i.e. at what point is it your or your insurer's problem if the building burns down? occupation is the right to move in and enjoy the benefit of the use of the property. So, possession first: When should you take [...]
The Restitution of Land Rights Act allowed previous owners of property who were unfairly forced from their land or who received less than a fair price for the land at the time, the right to claim the land back. The opportunity to lodge such a claim ended some time ago but has been reopened, and new claims are [...]
Make sure that your agreement contains a clause dealing with breach by the parties. In other words, what will happen if either party fails to honour its obligations under the agreement. It is a good idea to provide that if either party breaches the terms of the agreement and does not perform as they should, [...]
Commission is usually paid by the seller except in auction agreements where commission is usually paid by the purchaser. If commisison is paid by the purchaser, it is added to the purchase price in the calculation of the transfer duty payable. The commission clause must clearly provide when the commission is both earned and payable. Most [...]
Electrical compliance certificate This is possibly the source of more conflict between the buyer and seller after transfer than any other clause, with the possible exception of the voetstoots clause. The existence of the compliance certificate does not mean that the electrical installation is in excellent working order. It simply means that the basic safety [...]
Domicilium just means "home". This clause allows you to nomiate a home where all formal notices can be served. If a notice is served to this address/fax number/email address in the way indicated in the agreement, it is considered to have been received. Make sure the agreement gives a South African physical address [...]
The buyer benefits from a cooling off period when: the purchase price is R250 000 or less (and there are other exceptions which apply even if you fall into this category) or the Consumer Protection Act applies, (the seller is a supplier under the Act and sells property in the normal course of its business, and the [...]
Ok, there's quite a bit to think about if you are a foreign buyer. You should be asking at least these questions...
This is another very important section for buyers of property owned by foreign sellers, as well as for agents and conveyancers dealing with the transaction. Where the seller is non-resident, the buyer, the agent and the conveyancer are all burdened with the job of making sure that the seller pays a withholding tax to cover [...]
The transfer costs are usually payable by the buyer, but these should not include the cost of preparing an agreement. If an agent is involved and each party has their own attorney, usually each will pay their own costs for the negotiation of the agreement. If there is no agent, then, since the seller is [...]
