The method of payment of the purchase price must be clearly defined, as this is an essential clause. In a pre-printed agreement, all unsuperated options must be removed, as a default can nullify the agreement. Parties must determine whether a down payment is payable and when it is payable. If the buyer needs mortgage financing to purchase the property, the amount required and the date on which the financing must be approved must be clearly defined. If these data or periods are not included in the agreement, the agreement is not applicable. But this is not the end. The additional conditions essential to the sale must also be mentioned in the agreement. These essential concepts are not easy to define, but it must be kept in mind that there is no valid agreement if an essential concept has not been definitively agreed and is left open to further negotiations. When processing the sale of the land, the examples of essential conditions are: the method of payment of the purchase price, the time in which the purchase price must be paid, the suspensive conditions and other special conditions, as well as the date of the occupation and the possible rent of the operation. 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, certain legislative provisions must be respected in order for the agreement between the parties to be valid and binding. If you use any of these agreements, you must ensure that the document complies with South African law. This sale agreement assumes that the purchaser seeks the authorization of a financial institution for r1,500,000 by December 2, 2013, otherwise the agreement expires. Most people who have purchased a property may have noticed a clause dealing with the suspensive terms in the sale agreement. As a general rule, these conditions relate to deposits that must be paid, financing that must be obtained and/or other real estate that must be sold before the sale can be confirmed. The interpretation seems quite simple – meet the requirements, then the contract is valid; The contract is not valid. But is it that simple? And what are the consequences of non-compliance? When selling a home provided that the sale depends on the sale of the buyer`s property, it simply means that the buyer must sell his property to raise money to pay the seller. If the buyer does not sell his property, it means that the seller has not sold his property for the most part.
Both buyers and sellers are bound by this contract as soon as all the conditions are met and neither can resign without being penalized for breach of the terms of the contract, Bauer said. Michael Bauer, managing director of the real estate company SAProperty.com, said that if a suspensive condition is mentioned, it must be concluded before the agreement between the parties is applicable. “Given that such a condition can have significant consequences, it is essential that the intentions of the parties be clearly and precisely set out in the bid.” If such conditions were to depend on the sale of a property, it is important to include it expressly in writing in the offer to purchase so that they can appropriately affect the validity of the contract.