When it comes to property contracts, they need to be clinically accurate in completing all formalities to ensure watertight contracts. Many are the proverbs that promote this precept; for example, a stitch in time saves nine, and an ounce of prevention is worth a pound of cure. Many sale contracts, once they are in a conveyancer’s hands, become highly complicated and tangled, not because they are...
Before 1981, two major Acts of Parliament covered the essential formalities of contracts relating to the sale of immovable property. A very short Act, known as the Formalities in Respect of Contracts of Sale of Land Act, was passed in 1969 and prescribed one simple principle: that all such sale contracts had to be reduced to writing and had to be signed by both parties. In 1971, another much more...
No alienation of land after the commencement of this section shall, subject to the provisions of Section 28, be of any force or effect unless it is contained in a deed of alienation signed by the parties thereto or by their property practitioners acting on their written authority. The provisions of subsection (1) relating to the signature by the property practitioner of a party acting on the written...
It is not only essential to ensure that both parties sign a contract but also that the correct parties do so. The following are the essential features of any contract of sale to make it valid: - Both the Seller and the Buyer must be clearly identified, and both must sign the contract. - The contract must clearly state the Purchase Price to be paid by the Buyer to the Seller. - The Property sold to...
I4. The Property It is essential, likewise, to describe the property sold correctly. Negligence here can lead you to sell the next-door neighbour’s property, a non-existent property, a portion of a whole erf, or only a part share in a property. Once again, the deeds access system is a crucial source of information to establish the actual property being sold. In the case of Sectional Title...
It often happens that either or both parties require amendments to a contract before it is finalised. This is quite admissible provided the practitioner is fully aware of the implications and what has to be done. The following formalities must be observed in such circumstances. Changes to the contract It is quite in order to cross out a clause or other portion of a contract and insert a change...
To be legally binding, a contract needs two essential components: Agreement, and Consideration. Within the agreement and consideration lies an assortment of provisions that add to the legality of a contract. These include the offer, performance, terms, conditions, obligations, payment terms, liability, and default or breach of the contract. Agreement Component of a Contract The agreement...
Marriage Types One of the most important aspects of concluding a valid and effective sale is the need to properly identify and qualify the respective parties to the contract. Mistakes at this point can render the wholesale invalid and will often have severe repercussions for the Property Practitioner. This section deals with the fundamental facets relating to the identity of Sellers and Buyers...
Evaluation Methods The Purchase Price is usually determined when taking a mandate, which is then used for marketing a property for sale or for rent. This amount can vary once an offer is made by a prospective buyer or tenant. There are three main methods used when conducting a property evaluation. The most prominent and preferred method is the comparison method, as it’s directly linked to...
The conclusion of every sale depends to a large extent on the purchaser’s ability to finance the purchase of the property. Although there are numerous variations in the methods used, the ones you will encounter most often are: Cash transactions Part cash, part mortgage bond transactions; and 100% mortgage bond transactions Cash transactions This means that the purchaser has enough cash...