Contract Law

# Buying Property from a Company – Should You Buy the Shares or the House? – July 2021

You find the house of your dreams, agree on the price and get ready to put pen to paper. The house is in the name of a company, and you are offered a choice – either buy the house out of the company or take over the company (which owns the house and nothing else) by buying the shares and thus avoid the delay and cost of a normal property transfer and registration in the Deeds Office…

# DIGITAL SIGNATURES – LATEST CASE LAW! – 12 April 2021

Never before in our country’s history, have we seen a concerted effort in the property industry as we did, during levels 5 and 4 of lockdown, for estate agents; attorneys; sellers and purchasers to find “alternative methods” to sign sale agreements for land, when they had no access to printers and could not meet face to face as we are all accustomed to…

A Testator’s Intention: Is it enough for a valid Will? – 7 September 2021

The Wills Act sets out clear requirements for the drafting of a valid Will, including that it must have a signature or mark of the testator and must be witnessed. However, what happens if the wishes of the deceased are seemingly clear but the document does not otherwise meet the requirements of a valid Will?…

Breach of Contract

Remedies in case of a breach of contract What remedies does a party to a deed of sale have if the other party fails to fulfil his or her contractual obligations?

CAN I REVOKE AN OFFER? – 30 March 2021

Two of the fundamental elements of the South African Law of Contract is offer and acceptance. In other words, for a legally binding contract to come into existence, there must be a valid offer and there must be a valid acceptance of such an offer…

CONSUMER LAW

Author : Black Sash Publication CONSUMER LAW 1. What is Contract?2. The Law of Contract and Consumer’s Rights3. Ways of Selling and Buying4. Buying on Credit and Credit Agreements5. Debt Collectors6. Other Methods of Recovering Debt7. Friendly Societies8. Buying...

Cooling-Off – Period for Purchasers

In terms of the Alienation of Land Act, fixed property can only be sold by way of a written agreement between a seller and a purchaser. The act was some time ago amended to afford purchasers a “cooling-off” right.

Elected Domicilium addresses – 8 August 2020

One of the most common clauses that can be found in a contact is the so-called domicilium citandi et executandi clause. This clause, simply put, provides the addresses of the parties to the agreement, where they consent to service notices and pleadings in relation to that agreement…

Fractional Ownership

Fractional Ownership based on the ownership of undivided shares in a property as opposed to shares in a company or member’s interest in a CC

How to cancel your fixed-term contract

Author : Lauren Hastie – BOUWER KOBELI MORABE 7 August 2012 How to cancel your fixed-term contract in terms of the CPA Section 14 of the Consumer Protection Act 68 of 2008 (the “CPA”) limits the duration of a fixed term agreement to 24 (twenty four) months....

Instalment Sale Agreements

An installment sale agreement is an agreement of sale of land as defined in terms of the Alienation of Land Act, 1981 used or intended to be used mainly for residential purposes and in terms of a contract as defined in terms of the Alienation of Land Act, 1981 in terms of which the purchase price is paid to the seller by way of more than 2 (two) installments over a period of longer than 1 (one) year but no more than 5 (five) years.

Is it better to buy or build or plot and plan in South Africa? – 22 August 2021

Trying to decide whether to buy an existing home or to build is tough. An existing home will probably come with a landscaped garden, services installed, and all fitting decisions already made. If the Deeds Office does its thing, the transfer should be a relatively quick process from the moment your offer to purchase is accepted. But there are benefits in other approaches too…

Just how enforceable is an Agreement?

Just how enforceable is an Agreement? When two or more parties agree about something, they must respect the agreement, irrespective of what happens.

Moving in together? Read this … – 4 July 2021

Cohabitating versus legal marriage and property…
Cohabiting before marriage and even opting not to go the legal marriage route is commonplace these days and many cohabiting partners are looking to purchase property together, often as first time buyers…

Option to renew – 19 August 2020

Many lease agreements contain a clause granting the tenant an option to renew the lease after the expiry of the initial term. The clause will usually specify that the tenant may, before the contract term ends, exercise his/her option and in so doing renew the agreement for a further period…

Pleading Ignorance can be an Excuse – Beware of what You Sign

Author : Millers Attorneys Pleading Ignorance can be an Excuse (It Seems) Although a person is normally considered to be bound by that which he signs (under the common law rule of caveat subscriptor – “beware of what you sign”) – which includes...

Purchasers Cooling Off Right

Estate Agency Affairs Board [EAAB] PURCHASERS COOLING OFF RIGHT:[Under the Consumer Protection Act [CPA] relating to Properties with a Purchase Price up to and including R 250 000.00 …

RENOVATING YOUR HOME? A CERTIFICATE OF OCCUPANCY IS CRUCIAL – 16 February 2021

Once your local municipality has approved the building plans and you have completed the renovation, alteration, addition or extension to your home in accordance with such building plans in the required timeframe, it is imperative that you, or your project manager, make contact in writing with the municipality, to request the issue of a Certificate of Occupancy…

Transfer of immovable property following divorce – 26 February 2021

In respect of immovable property, it is important to note that the divorce order merely records that the party/parties are entitled to a full or half share in the immovable property. Thereafter, transfer of the applicable share in terms of the divorce order, must be registered by a conveyancer in the office of the Registrar of Deeds…

When Bond Clauses Sink Sales – June 2021

A very common suspensive clause in property sale agreements, where the buyer cannot pay the purchase price in cash, is the “bond clause” making the sale subject to the buyer obtaining a “bond approval” from a financial institution (usually a bank)…

When does the Consumer Protection Act apply to property sales?

The wave of publicity that accompanied South Africa’s widely-praised Consumer Protection Act has in some cases led buyers (consumers) to believe that they are afforded a blanket protection covering every commercial transaction in which they are involved…

When is a Sale of Businesses Voidable?

Author : Mark Fiandeiro – BOUWER KOBELI MORABE 14 August 2012: In terms of section 34 of the Insolvency Act, if anyone transfers any business that belongs to them in terms of an agreement, or even the goodwill of such business, or any of the business’ goods or...

WHY A ’72 HOUR’ CLAUSE? – 7 July 2020

The ’72 hour clause’ (or ‘continued marketing clause’) is somewhat of an enigma for a first time buyer or seller and we therefore explain here how it works. It is important to consider the exact wording of the ’72 hour clause in each and every sale agreement…