Document background
The Seller Financing Addendum is utilized in South African property transactions where traditional bank financing is either unavailable or not preferred by the parties. This document serves as an addendum to the main sale agreement, establishing the terms under which the seller will provide financing to the buyer. It must comply with the National Credit Act 34 of 2005, the Alienation of Land Act, and other relevant South African legislation. The addendum includes critical information such as the loan amount, interest rate, repayment terms, security arrangements, and default provisions. It's particularly useful in situations involving owner financing, investment properties, or when buyers face challenges obtaining traditional mortgage financing. The document must incorporate mandatory consumer protection provisions and statutory disclosures required by South African law.
