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Agreement To Sell (Real Estate) for South Africa

Agreement To Sell (Real Estate) Template for South Africa

A legally binding document governed by South African law, particularly the Alienation of Land Act 68 of 1981, that formalizes the sale and purchase of real estate property. This agreement outlines all essential terms and conditions of the property sale, including purchase price, transfer conditions, warranties, and compliance requirements. It incorporates specific South African legal requirements such as mandatory compliance certificates, FICA regulations, and transfer duty considerations, while providing protection for both the seller and purchaser throughout the property transfer process.

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What is a Agreement To Sell (Real Estate)?

The Agreement To Sell (Real Estate) is a fundamental legal document used in South African property transactions to formalize the sale of immovable property. It serves as the primary contract between a seller and purchaser, documenting all essential aspects of the property sale including price, payment terms, transfer conditions, and various legal requirements specific to South African property law. This agreement 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. The document is typically used in both residential and commercial property transactions and must incorporate various statutory requirements including FICA compliance, transfer duty provisions, and mandatory property certificates. It forms the basis for the subsequent transfer process and is a crucial document for conveyancers handling the property registration.

What sections should be included in a Agreement To Sell (Real Estate)?

1. Parties: Full details of the Seller and Purchaser, including legal names, registration/identity numbers, and physical addresses

2. Background: Context of the sale and brief description of the property being sold

3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Transfer Date', 'Signature Date', etc.

4. Sale: Core provision confirming the sale and purchase of the property

5. Purchase Price: Details of the purchase price, payment terms, and deposit requirements

6. Transfer and Registration: Process and timing for property transfer, appointment of conveyancer, and registration requirements

7. Possession and Risk: Date of possession, transfer of risk, and occupational rent if applicable

8. Warranties and Representations: Standard warranties by both parties, including seller's warranties about the property condition

9. Property Condition: Description of the property's current condition and any defects

10. Compliance Certificates: Requirements for electrical, gas, electric fence, and other mandatory certificates

11. Transfer Costs and Charges: Allocation of transfer costs, transfer duty, and other associated expenses

12. Estate Agent Commission: Details of estate agent's commission if applicable

13. Breach: Consequences of breach and remedies available to the parties

14. Dispute Resolution: Process for resolving disputes between the parties

15. Notices and Domicilia: Communication methods and official addresses for notices

16. General Terms: Standard boilerplate clauses including entire agreement, variation, and governing law

17. Signing: Execution clause and signing details

What sections are optional to include in a Agreement To Sell (Real Estate)?

1. Bond Clause: To be included when the purchase is subject to the buyer obtaining mortgage finance

2. Sale of Purchaser's Property: To be included when the purchase is conditional on the buyer selling their existing property

3. Occupational Rental: Required when there's a gap between occupation and transfer dates

4. Tenant Provisions: Required when the property is currently let to tenants

5. FICA Requirements: Detailed Financial Intelligence Centre Act compliance requirements for high-value transactions

6. VAT Provisions: Required when the seller is VAT-registered and the sale is a VATable supply

7. Special Conditions: Any unique requirements specific to the particular transaction

8. Agent Mandate: Details of estate agent's appointment and obligations if an agent is involved

What schedules should be included in a Agreement To Sell (Real Estate)?

1. Property Description Schedule: Detailed description of the property including erf number, title deed details, and physical description

2. Fixtures and Fittings Schedule: List of items included and excluded from the sale

3. Defects Schedule: Detailed list of known defects in the property

4. Payment Schedule: Detailed breakdown of payment terms and timelines if payment is structured

5. Compliance Certificates Appendix: Copies of all required compliance certificates

6. Property Plans Appendix: Building plans, site plans, and relevant zoning documents

7. Proof of Authority Appendix: Required corporate resolutions or trust documents if parties are not natural persons

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

South Africa

Publisher

Ƶ

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions



































Clauses




































Relevant Industries

Real Estate

Property Development

Legal Services

Banking and Finance

Construction

Property Management

Professional Services

Urban Development

Residential Property

Commercial Property

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Sales

Business Development

Risk Management

Operations

Corporate Services

Documentation

Relevant Roles

Real Estate Agent

Property Lawyer

Conveyancer

Property Developer

Legal Counsel

Property Manager

Compliance Officer

Real Estate Broker

Property Practitioner

Transaction Manager

Property Attorney

Sales Manager

Business Development Manager

Property Consultant

Legal Administrator

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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