A condition precedent is a material condition and must therefore be written and clearly formulated in order to avoid uncertainty. The sale, which depends on whether the buyer has a mortgage, is a default condition. If the event does not occur, that is, the buyer does not obtain a borrowing authorization, no contract is concluded. For the purposes of section 2 of the Land Transfer Act (No. 68 of 1981), an agreement for the sale of immovable property, in order for it to be valid, must be signed in writing and signed by both parties (i.e. the seller and the buyer). If the agreement is not written or signed, it is null and void and therefore has no force or effect. 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, for the agreement between the parties to be valid and binding, certain laws must be respected.
If you use one of these model agreements, you must ensure that the document complies with South African law. The parties must also be aware of the certificates of conformity that must be obtained before the registration of a transfer of ownership and provide for them in the contract of sale. Certificates of conformity concerning electrical installation, installation of electric fences and installation of gas on the ground are necessary within the meaning of the Occupational Health and Safety Act and the parties cannot agree or waive them. A “pest” certificate certifies that the property is free of certain wood-destroying insects, and in Cape Town, the seller must obtain a plumbing certificate. The contract must contain at least a description of the seller and the buyer, a description of the property for sale and the purchase price. These are considered to be essential conditions of the agreement. If you have any doubts about the validity and commitment of your agreement, contact a real estate lawyer who will guide you in the right direction. A special condition is also an essential condition of the contract and the same safety rules apply. A particular condition does not suspend the treaty and it is a contractual obligation that can be applied. An example of a special condition is that one of the parties must do something with respect to the property (for example.B.
the seller must provide the buyer with approved municipal plans). The following should be considered: who should do what, when should it be done, how it should be done (not always true) and what are the consequences if a party does not. Here is a free sales contract that you can download. This document complies with the Consumer Protection Act (CPA) and applies to Freehold premises, i.e. in a house or apartment. Click here: Freehold Sale Agreement What conditions should be included in a sales agreement? The method of payment of the purchase price must be clearly defined, as this is an essential deadline. In a pre-printed agreement, all unused options must be removed, as a default can invalidate the agreement. The parties must indicate if and when a deposit must be paid. If the buyer requires mortgage financing for the purchase of the property, the amount needed and the date on which the financing must be approved must also be clearly defined. If these data or deadlines are not provided for in the agreement, the agreement is not applicable. CONDITIONS PRECEDENT: conditions of the buyer or seller that must be met for the contract to become a binding contract of sale.
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