Document background
The Financing Addendum To Purchase And Sale Agreement is essential in South African property transactions where specific financing arrangements need to be documented separately from the main purchase agreement. This document is typically used when there are detailed financing terms that need to be agreed upon between the parties, such as payment schedules, interest calculations, and security arrangements. It must comply with South African legislation, particularly the National Credit Act 34 of 2005 and the Alienation of Land Act 68 of 1981. The addendum is crucial in both residential and commercial property transactions where financing is not handled entirely through traditional mortgage bonds, or where additional financing terms need to be specified. It provides legal protection for all parties by clearly documenting the financing arrangements and their relationship to the main purchase agreement.
