Hanlies Properties Paarl - What is the first step in the sale of fixed property?

The first prerequisite is the deed of sale. This must be a written agreement which is signed by both the purchaser and the seller (and by the seller's spouse and the purchaser's spouse in some cases). A written "offer to purchase" signed by a purchaser and accepted by a seller also constitutes a deed of sale. A verbal contract for the sale of fixed property is invalid.The deed of sale is an important document which must be carefully examined.

The parties (with the assistance of a conveyancer) must check that the total amount payable by the purchaser is what has been agreed on, that the terms of payment are acceptable to both parties, that all verbal promises made by the seller or his estate agents are incorporated in the document and that nothing mentioned in the document is contrary to any legal provision. Occupancy of the property does not necessarily have to coincide with registration of transfer.

If occupation takes place prior to registration, the deed of sale must provide what rent is payable until the registration. Risk in the property in such cases passes to the purchaser on occupation, although this consequence can be (and often is) changed in the deed of sale itself.

The purchaser must, therefore, take out insurance in inappropriate cases.The purchaser is usually responsible for payment of transfer costs. These are fixed by the law society and the purchaser will be able to know in advance, to within a few rands, what the costs will be. Finally, if the sale is subject to the granting of a bond, this must be specified in the deed of sale.

It should also be specified as to what the amount of the bond must be, how long the purchaser will have to obtain the bond, who will apply for the bond and so forth. It must also be specified that if the purchaser is unable to obtain the required bond in time, then the whole deal is to fall through. At this stage the property still does not legally belong to the purchaser although he has the right to require the seller to transfer the property to him.