Document background
The Short Sale Contract is utilized in South African property transactions where the seller, due to financial distress or market conditions, needs to sell their property for less than the outstanding mortgage amount. This document is essential when standard property sales agreements are insufficient due to the involvement of the mortgage holder in approving the sale terms. The contract addresses unique aspects such as lender approval conditions, potential deficiency judgments, and special closing requirements while ensuring compliance with South African property law, including the Property Law Act and Consumer Protection Act. It provides protection for all parties involved and clearly outlines the responsibilities and expectations in what can be a complex transaction involving multiple stakeholders.
