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Property Sales Agreement Example | Offer to purchase

Property Lawyer

A "property sales agreement" is also known as an "offer to purchase", and once signed by both parties becomes the "deed of sale". The buyer of the property makes an "offer to purchaser", and then the seller may accept the offer by signing it. The example of a property sales agreement shown below is for a residential house or flat; note that it is just an example to show you what it might look like; do not use it without hiring an expert property lawyer to tailor it to the particular circumstances around a property sale, and ensure that it is crafted correctly. Consult with a legal professional to ensure that the content of your agreement is legally sound and appropriate for your specific needs. This includes verifying clauses related to legal compliance, such as CPA and POPIA.

Selection of Conveyancing Lawyers

Traditionally it's been up to the seller to decide on who the conveyancing attorneys are (often as suggested by the real estate agents), but there is nothing to stop the purchaser from suggesting or evben insisting of conveyancing attorneys who they feel comfortable with; after all it is a large amount of money which they are eventually going to have to EFT to the trust account run by the conveyancers.

Expiry date of offer

It is usually good practice for a seller to put an expiry date for the offer, in the offer to purchase. Canny purchasers will sometimes place a really short expiry period, e.g. expires in 24 hours, to place pressure the seller to accept the offer. The purchaser can place whatever clauses they want in the offer to purchase, as it is their offer. Then it is up to the property seller to decide whether or not they accept it.

Example of a Property Sales Agreement

OFFER TO PURCHASE

which constitutes a

DEED OF SALE

when accepted

I/We, the undersigned,




Address:
TELEPHONE - CELL: 
E-MAIL: 
SARS Tax Reference Number:
          

(hereinafter called "the Purchaser")


hereby offer to purchase from:

Address:
TEL:
E-mail : 
SARS Tax Reference Numbers:

(hereinafter called "the Seller")

 

the following property, namely:           

           
ERF 

Situated at:                     

(hereinafter called "the Property")

Attorney shaking hands with property seller, symbolising her thanks for him drafting a property sales agreement.

 
on the following terms and conditions:

  1. ACCEPTANCE

    2. This Offer shall become a final and binding sale upon acceptance hereof by the Seller.  

  2. PROTECTION OF ACT 68 OF 2008 (“CPA”) AND PROTECTION OF PERSONAL INFORMATION ACT 4 OF 2013 (“POPIA”)

    3. The Seller confirms that she is NOT selling the Property in the ordinary course of her business and that to the best of her knowledge the CPA does not apply to this Agreement.

    The Seller and Purchaser each hereby consent to the processing (as defined in POPIA which includes collection, retention and transfer) of their personal information (which includes contact details and identification numbers) as may be required to give effect to or otherwise implement the provisions of this Agreement and the transactions contemplated herein.  This will include, where relevant, providing personal information to financial institutions, mortgage originators, attorneys and other services providers such as those required to obtain compliance certificates.

  3. PURCHASE PRICE

    4. The purchase price shall be the sum of R
    payable by the Purchaser as follows: - 

    1. A deposit of R

      2. to be paid on acceptance by the Seller of this offer, direct to the TRANSFERRING ATTORNEYS, ???????FILL-IN-CONVEYANCERS?????????, which amount shall be invested in an interest bearing Trust Account with interest payable to the PURCHASER until date of registration of transfer.

    2. The balance of the purchase price against registration of the transfer free of Bank exchange at Cape Town payable to ???????FILL-IN-CONVEYANCERS?????????.

     
    The Purchaser shall furnish a guarantee by a bank or other Financial Institution acceptable to the Seller, covering payment of the purchase price and costs. Such undertaking shall be furnished by the Purchaser within 14 (Fourteen) days of acceptance by the Seller of this offer. 


  4. MORTGAGE
    1. This offer is suspensive upon the approval by a financial institution(s) on its normal terms and conditions, of a mortgage loan(s) in favour of the Purchaser totalling, or not less than, R within a period of 14 (fourteen) days from the acceptance of this Offer, or such extended period as the parties may agree to in writing;

      2.  

    2. The Purchaser undertakes to sign all documentation necessary to give effect to this clause;

      3.  

    3. The suspensive condition shall be deemed to have been fulfilled even if such loan is approved subject to the Purchaser or other person interposing himself as surety for and co-principal debtor in solidum with the Purchaser for the fulfilment of all the Purchaser’s obligations under the loan.

     

  5. CONTINUED MARKETING

    6.  
    Prior to fulfilment of the suspensive conditions the Seller retains the right to continue marketing the property which is the subject of this agreement.

    Should the Seller at any time prior to the fulfilment of the suspensive conditions receive another offer in good faith, to purchase the property, which offer contains no suspensive conditions, alternatively where all suspensive conditions have been fulfilled, and which the Seller finds more acceptable and wishes to accept, then the Purchaser herein shall be notified of such fact in writing and shall have 72 (seventy two) hours (excluding Saturdays, Sundays and public holidays) from time of receipt of such notification to waive in writing the benefit of all suspensive conditions in this Agreement, failing which, this Agreement will lapse and be of no further force or effect.

  6. BENEFITS AND RISKS OF OWNERSHIP <

    7. All benefits and risks of ownership of the property shall be given and passed to the Purchaser on registration of transfer, from which date the Purchaser shall be entitled to the rents (if any) accruing from the property, and shall be liable for all rates and taxes or other amounts paid by the Sellers in advance, in respect of the period from the said date to the date up to when such advance payments apply. Such refund shall be made forthwith on demand upon registration of transfer.

  7. OCCUPATION

    8.  
    Occupation of the property, subject to the rights of existing tenants, if any, shall be given to the Purchaser on date of registration or earlier, if agreed upon in writing by the parties from which dates the Purchaser shall:

    1. pay occupational interest at the rate of 

      2. per month until date of registration of transfer, which amount shall be paid to the Sellers monthly in advance no later than the date of occupation and thereafter on the first business day of each succeeding month. 

    2. Be liable for the payment of all rates and taxes in respect of the said fixed property. The purchase shall refund to the Seller any rates and taxes paid by the Seller for any period beyond the day of occupation.

    3. In the event of the sale falling through for any reason whatsoever, the purchaser undertakes to vacate the property within 7 days of the Seller or his Agent/Conveyancer giving written notice.

     

  8. POSSESSION

    9.  
    Possession of the property shall be given to the Purchaser upon date of registration of transfer. Until such date, the Purchaser shall make no alteration or addition to the improvements on the property.

  9. TRANSFER

    10. Transfer of the property shall be passed by the Sellers’ Conveyancer, ???????FILL-IN-CONVEYANCERS????????? and shall be given and taken by the Purchaser on or about  or as soon as possible thereafter. 

    The Purchaser shall pay all transfer costs incurred in respect of the registration of transfer of the property, including Transfer Duty and the costs of and relating to obtaining the Master’s Consent to the Sale, which amounts shall be paid immediately upon request of the Seller’s Conveyancers, ???????FILL-IN-CONVEYANCERS?????????.

  10. RATES AND TAXES.

    11. The Purchaser shall be liable for the payment of all Rates, Levies, Taxes, Insurance Premiums and other charges in respect of the property beyond the date of occupation or registration of transfer, whichever is the earlier.

  11. FIXTURES

    12. The property is sold with all fixtures and fittings of a permanent nature, (which the Seller warrants are paid for) as viewed by the Purchaser.

  12. BREACH.
    1. In the event of the Purchaser failing to fulfill on due date any of the terms and conditions of this Deed of Sale, within 7 (seven) days of written demand, the Sellers shall have the right either;

      2.  

      1. To cancel the sale by registered letter addressed to the Purchaser, in which event the Purchaser shall, at the option of the Sellers, and without prejudice to any other rights which the Sellers may have, either forfeit all monies paid to the Sellers or their Agent in terms hereof or alternatively be liable to the Sellers in damages.  In the latter event the Sellers shall be entitled to withhold any monies repayable to the Purchaser until their damages have been determined and then to apply set-off against such damages; or

        2.  

      2. To claim immediate payment of the whole of the purchase price and the fulfilment of all the terms and conditions hereof.

     

  13. DOMICILIA CITANDI ET EXECUTANDI.

    14.  
    The Parties hereto respectively choose domicilium citandi et executandi for all purposes of and in connection with this Agreement as follows:-

    THE SELLER:              



    THE PURCHASER:                 


  14. VOETSTOOTS.

    15. The Property is sold as described in the existing title deed or deeds thereof, and subject to all conditions and servitudes (if any) attaching thereto or mentioned or referred to in the said title deeds or prior deed.  The Seller shall not be liable for any deficiency in extent which may be revealed on any re-survey, nor shall the Seller benefit by any surplus in extent.

  15. WARRANTIES.

    16. The property is sold "voetstoots' and as it stands, the Seller giving no warranty in regard to the buildings and any improvements upon the property or the rights attaching thereto.  The Seller shall not be liable for any defects in the property, either latent or patent. The Sellers shall not be required to indicate to the Purchaser the position of the beacons or pegs upon the property and/or boundaries thereof, nor shall the Seller be liable for the costs of locating same.

  16. WAIVER.

    17. Notwithstanding any express or implied provisions of this Deed of Sale to the contrary, any latitude or extension of time which may be allowed by the Seller in respect of any matter or thing that the Purchaser is bound to perform or observe in terms hereof, shall not under any circumstances be deemed to be a waiver of the Sellers’ rights at any time, and without notice, to require strict and punctual compliance with each and every provision or term hereof.

  17. LEGAL PROCEEDINGS 

    18.  Any legal proceedings which may arise out of or in connection with this agreement may at the election of either party be instituted in the Magistrate’s Court,  notwithstanding that the amount of the claim might otherwise exceed the jurisdiction in the Magistrate’s Court.

  18. CERTIFICATE OF COMPLIANCE OF WATER INSTALLATION

    19.  The Seller shall, at his/her expense, submit a certificate of compliance, by an accredited plumber, to the City of Cape Town Municipality certifying that the water installation on the property confirms with the requirements stipulated in section 14 of the City of Cape Town Water By-law 2010.

    All expenses incurred in meeting the criteria for the issue of such certificate, including the certificate itself, shall be borne by the Purchaser, and shall be obtained and submitted to the municipality prior to registration of transfer. The Seller further undertake to deliver a copy of such certificate to the Purchasers prior to registration of transfer.

  19. SARS DECLARATION

    20.  The Seller and the Purchaser warrant to each other that all tax issues whether personal or otherwise including but not limited to tax returns and tax payments are current and up to date.  The defaulting party will be liable for all costs incurred and damages suffered by the aggrieved party as a result of a breach of this warranty. The aggrieved party shall also be entitled to place the defaulting party on terms and thereafter cancel the agreement if the warranty is breached. These remedies are in addition to all rights which the parties have in terms of this agreement or in law.

  20. FICA

    21. The Purchaser and the Seller undertake to furnish the Conveyancing Attorneys, ???????FILL-IN-CONVEYANCERS?????????, with the necessary documentation in order to comply with provisions of FICA (the Financial Intelligence Centre Act) as well as any documentation as  may be required to enable the Conveyancer’s to effect the registration of Transfer.

  21. INTERPRETATION.

    22. In this Agreement, words importing the singular shall include the plural and vice versa, words importing the masculine gender shall include the feminine gender and words importing persons shall include bodies corporate.

  22. VARIATION.

    23. This Deed of Sale constitutes the entire Agreement between the parties and no modification, variation or alteration thereto shall be valid unless in writing and signed by both parties hereto.

  23. AGENTS’ COMMISSION

    24.  NONE. The Purchaser warrants that she has not been introduced to the property by an Estate Agent.

  24. SPECIAL CONDITIONS

    25.  







    SIGNED by the PURCHASER at                                      on the day of                                                                         


    ____________________________


    AS WITNESSES:


    1.   ____________________________

    2.   ____________________________                                    






    ACCEPTED by the SELLER at                                      on the      day of               

               


    ____________________________


    AS WITNESSES:

     
    1.   ____________________________

    2.   ____________________________  

                                                                                

    Lady Justice

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