AA - 2016

Author:  Stefan Hougaard – STBB
6 September 2016

RECORD SALE PROMISES

In new developments it often happens that, at the time of sale, building works in the development are still under way. Such agreements include undertakings regarding the nature and style of building works still to be finalised.

A recent High Court judgment highlights risks that can arise. There the sale agreement for a golf estate property contained a vague description of an estate clubhouse still to be erected. A clubhouse facility was subsequently made available, but the purchaser felt done-in as it differed from what was promised in a post-agreement newsletter of the developer. The purchaser’s claims did not succeed, the Court noting that the later newsletter did not bind the developer contractually as it did not form part of any signed agreement between the parties.

Make sure, in any purchase in such developments, that all the material details of building works still to be completed, are recorded clearly.

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