Prior to signing a sale agreement it is best to have a Conveyancer to check and advise parties regarding their rights and obligations. Here is a list of some of the important points to consider:
- Full names, ID numbers and marital status of all parties must be disclosed. For example, if a party is married in community of property then both spouses need to sign the sale agreement.
- If one of the parties is a company or trust or other legal entity then the person signing on behalf of same must be duly authorized by a company resolution or Letter of Authority for a trust etc.
- The sale agreement must set out the property description in full with the extent (street address and Deeds Office description is best).
- The Purchase price must be set out in words and figures and details of payment such as deposit etc must be clearly set out with time limits.
- Occupation date and transfer date need to be set out so both parties know what they are aiming for.
- It is best to include the amount of occupational rent because often the transfer and occupation dates do not coincide. Offen even where the contract said they would as the transfer date cannot be guaranteed by the Conveyancer, for example sometimes the Deeds Office has delays or delays at the Municipality etc.
- If any movables, such as furniture, are included in the purchase price then there should be a list of the said furniture as well as an amount being the value of same. This is vital as transfer duty is not paid on movables and it there is any dispute later then the contract can be used to solve the dispute.
- A realistic transfer date should be set out in the sale agreement as a normal transfer can take two to three months from the date the Conveyancer is instructed to date of registration at the Deeds Office.
- The sale agreement must also include a DISCLOSURE as to any defects so once again the parties are clear on who is responsible to remedy any defects. Most agreements will be VOETSTOOTS but this has to be read with the Disclosure and the seller is obliged to disclose any defects he is aware of.
- The name of the Conveyancer and Estate Agent should be set out in the Sale agreement so both parties are aware of this. The amount of commission payable by the seller should also be disclosed. This can be negotiated by the Seller and estate agent as there is no FIXED percentage set by law.
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