The Pre-Sale Contract is a crucial document in South African property transactions, used when parties wish to formalize a property sale before the actual transfer takes place. It is particularly relevant for new developments, off-plan purchases, or situations where certain conditions need to be met before final transfer. The document must comply with the Alienation of Land Act 68 of 1981, which requires all property sale agreements to be in writing and signed by all parties. It typically includes comprehensive details about the property, payment terms, transfer conditions, and various warranties. This type of contract is especially important in protecting both seller and purchaser interests during the period between sale agreement and property transfer, ensuring compliance with South African property law and consumer protection regulations.
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1. Parties: Full legal names and details of the seller and purchaser, including registration numbers for companies or ID numbers for individuals
2. Background: Context of the sale, including brief description of the property and intention to enter into a pre-sale agreement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Purchase Price', 'Transfer Date', etc.
4. Property Description: Detailed description of the property including erf number, physical address, size and zoning
5. Purchase Price: The agreed purchase price and detailed payment terms including deposits and payment schedules
6. Conditions Precedent: Any conditions that must be fulfilled before the agreement becomes binding, such as mortgage bond approval
7. Transfer and Registration: Process and timing for property transfer and registration, including appointment of conveyancers
8. Warranties: Warranties provided by the seller regarding the property's condition and legal status
9. Risk and Possession: When risk transfers to the purchaser and arrangements for taking possession
10. Default and Breach: Consequences of breach by either party and remedies available
11. Notices and Domicilia: How formal notices should be given and parties' chosen domicilia citandi et executandi
12. General Terms: Standard clauses including whole agreement, variation, and governing law
1. Development Conditions: Used when the property is part of a development still under construction, specifying completion dates and standards
2. Occupational Rent: Required when there will be a period where the purchaser occupies the property before transfer
3. Agent Commission: Included when an estate agent is involved in the transaction
4. FICA Requirements: Detailed section on Financial Intelligence Centre Act requirements when dealing with high-value transactions
5. Fixtures and Fittings: Detailed list of items included/excluded from the sale when this needs specific clarification
6. Statutory Compliance: Special conditions relating to compliance with specific regulations, particularly for commercial properties
7. Tenant Rights: Required when the property is currently leased and includes provisions about existing tenants
1. Schedule A - Property Details: Detailed description of the property including boundary details, diagrams, and zoning certificates
2. Schedule B - Payment Schedule: Detailed breakdown of payment terms, installments, and due dates
3. Schedule C - Fixtures and Fittings: Comprehensive list of all items included in or excluded from the sale
4. Schedule D - Development Specifications: For properties under development, detailed specifications and building plans
5. Schedule E - Compliance Certificates: List of required compliance certificates and their status
6. Appendix 1 - Property Plans: Architectural plans, site plans, and other relevant drawings
7. Appendix 2 - Title Deed: Copy of the current title deed of the property
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