¶¶Òõ¶ÌÊÓƵ

The Provisional Sales And Purchase Agreement is a crucial document in South African property transactions, serving as an interim binding agreement between parties while certain conditions are being fulfilled. It is typically used when parties wish to formalize their intent to enter into a property transaction but need to satisfy specific requirements first, such as obtaining mortgage approval or completing property inspections. This document, governed by South African property law including the Alienation of Land Act, provides essential protection for both buyer and seller during the conditional period. It includes key elements such as property details, purchase price, payment terms, suspensive conditions, and timeframes for condition fulfillment, while maintaining flexibility for progression to the final sale agreement.

1. Parties: Identifies and provides full details of the Seller and Purchaser, including legal names, registration/identity numbers, and addresses

2. Background: Outlines the context of the sale and the parties' intention to enter into a provisional agreement

3. Definitions and Interpretation: Defines key terms used in the agreement and sets out rules for interpreting the agreement

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

5. Purchase Price: States the agreed purchase price and payment terms including deposit requirements

6. Payment Terms: Specifies how and when payments must be made, including deposit and balance arrangements

7. Suspensive Conditions: Lists conditions that must be fulfilled for the agreement to become final, such as mortgage bond approval

8. Occupation and Possession: Specifies the date of occupation and terms related to occupational rent if applicable

9. Voetstoots Clause: States that the property is sold 'as is' subject to Consumer Protection Act provisions

10. Transfer and Registration: Details the process and timing for property transfer and registration

11. Estate Agent Commission: Specifies commission arrangements if an estate agent is involved

12. Risk and Insurance: Addresses transfer of risk and insurance requirements

13. Breach: Outlines remedies available to parties in case of breach

14. Dispute Resolution: Specifies procedures for resolving disputes between parties

15. Notices and Domicilia: Lists official addresses for legal notices and communications

16. General Terms: Includes standard contractual provisions like entire agreement clause and variation requirements