| Addendum:
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.
Agreement
of sale:
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.
Breach
clause:
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.
Conditions
of title:
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.
Cooling-off
right:
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.
Electrical
compliance certificate:
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.
Entomologist's
certificate:
A similar 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.
Escape
clause:
A condition in 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.
Fixtures
and fittings:
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.
Guarantees:
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.
Interest-bearing
accounts:
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.
Jurisdiction:
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.
Null
and void:
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.
Prior
occupation:
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.
Offer
to purchase:
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
sale agreement.
Possession:
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.
Property
description:
This is the definition of the property sold in a sale agreement.
It can simply be its street address but shoul record its erf number
and township as described in the owner's title deed.
Subject-to
sale:
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.
Suspensive
condition:
A provision in a contract suspending its operation until a specific
condition is fulfilled. A clause stating that the sale will only
be confirmed if a mortgage loan is granted is a typical suspensive
condition.
Voetstoots:
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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