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The Owner Finance Purchase Agreement is a specialized legal document used in South African property transactions where traditional bank financing is either not preferred or not available. This agreement serves dual purposes: documenting the property sale and establishing the financing arrangement between the seller and purchaser. It must comply with several key pieces of South African legislation, including the National Credit Act 34 of 2005 and the Alienation of Land Act 68 of 1981. The document is particularly valuable in situations where buyers seek alternative financing options or sellers wish to generate ongoing income through property financing. It includes comprehensive terms covering property transfer, payment schedules, interest rates, security arrangements, and default provisions, while ensuring proper protection for both parties throughout the duration of the financing period.

1. Parties: Identification of the Seller/Finance Provider and the Purchaser with full legal names, registration/identity numbers, and addresses

2. Background: Context of the transaction, including brief property description and parties' intention to enter into an owner-financed purchase arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including Property, Purchase Price, Finance Amount, and other relevant terms

4. Property Description: Detailed description of the property including erf number, physical address, size, and registration division

5. Purchase Price and Payment Terms: Total purchase price, deposit amount, finance amount, interest rate, and payment schedule

6. Finance Terms: Detailed financing provisions including loan term, interest calculations, payment methods, and early settlement provisions

7. Security Arrangements: Details of property as security, registration of bond/mortgage, and additional security requirements if any

8. Transfer and Registration: Process and conditions for property transfer, including timing and responsibilities

9. Warranties and Representations: Warranties by both parties regarding property condition, authority to enter agreement, and financial circumstances

10. Insurance and Maintenance: Requirements for property insurance and maintenance during the finance period

11. Default and Remedies: Consequences of default, cure periods, and available remedies

12. General Terms: Standard legal provisions including notices, governing law, jurisdiction, and dispute resolution

13. Signatures: Execution clause and signature blocks for all parties and witnesses