Installment Agreement South Africa

It is illegal for the seller to revocation if the buyer is caught in default under an agreement that has not been registered with the Clerk of the Facts. If the buyer is a small legal entity that borrows more than R250,000, the provisions of the NCA do not apply to the creditor (seller) or the credit contract (term purchase contract). If the purchaser is a large corporation (annual turnover or assets greater than R1 million), the provisions of the NCA do not apply, regardless of the amount of money borrowed. A person wishing to acquire a property in South Africa can enter into a contract to purchase at a time (weather-missed sales contract) in the form of which the purchase price is paid in increments. 18.4 acknowledges that the seller has given the buyer a prior agreement and an offer (in the form of the letter of offer and offer); The contract offers some protection to the parties, since the contract itself can be registered with the relevant office. In order to enter into a contract to purchase in a temperament, the land to be sold must be a real estate, which then clearly excludes commercial, agricultural, industrial and other real estate. In addition, the purchase price must be paid in two or more installments over a period of at least twelve months. There are many formalities that must be completed for the treaty to be valid. Therefore, it is advisable to ensure that a lawyer develops the contract itself to ensure that all legal requirements are met.

Various information must be disclosed in the contract of sale with a catch-up temper, including, of course, the name of the buyer and seller, the purchase price and description of the property, but also other information such as the name of the borrower and the transfer fee to be paid. Since the transfer tax must be paid within 6 months of the conclusion of the contract, it should be kept in mind that this is the case, otherwise the buyer pays penalties plus interest. The penalty is normally 10%. At first glance, the temperamental sale contract appears to be the solution in which the purchase price of a property cannot be paid shortly after the contract is signed; unfortunately, due to the introduction of the National Credit Act, there are a number of problems related to the conclusion of a contract of sale in temperament. The seller provides credit to the buyer and must therefore comply with the national credit law.

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