Let ’ s look at the clauses one by one :
The Parties to the Agreement The conveyancers ( a law firm qualified to complete transfers of immovable property ) must be able to identify the seller and the purchaser .
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Investing in Property It ’ s a well-known fact that property is the best investment one can make and the benefits of are endless . With well-chosen assets i . e . properties , investors can enjoy predictable cash flow , excellent return on investments , tax advantages , and diversification
The conveyancers must check that the seller is in fact the registered owner of the property for sale or has the right to sell the property . If the seller is a juristic person i . e . a company or trust , the seller ’ s representative must be legally authorised , in writing , to do so . The person signing the agreement must also have the contractual capacity to enter into the agreement on behalf of another person .
The details of the parties should include full names , identity and / or registration numbers , marital status , physical address , contact details , tax numbers and whether the parties are South African residents or not .
Description of the property This should include the erf number or sectional title scheme number and section number , the physical address of the property being sold , the extent of the property , the holding title deed of the property and other relevant details .
These details include the monthly rates / levy estimate , the name of the managing agents and the details of any homeowners ’ association .
If the property is sectional title , the purchaser may want to obtain details of the body corporate finances and to know whether any special levies have been declared .
The Voetstoots Clause This clause means that a purchaser buys the property “ as is ”. The seller is protected against a claim by the purchaser for patent defects in the property i . e . those that are clear and can be easily seen , such as a cracked tile . The seller cannot hide behind the voetstoots clause for latent defects those that are hidden .
If the seller is aware of a latent defect and deliberately conceals it with the intention to defraud the buyer , all voetstoots protection falls away and the purchaser can claim a reduction in the purchase price . Where the defect is material , the purchaser can apply to have the sale set aside .
The purchaser should insist , where an agent is involved in the sale of the property , on a copy of the Immovable Property Report , in which the seller states in writing if there are any defects in the property .
Purchase Price & Guarantees Unless agreed otherwise in the Agreement of Sale , the purchase price is payable in South African rand on transfer of the property in the deeds office into the name of the purchaser .
SA Real Estate Investor Magazine APRIL 2021 25