In what format must your property sale agreement be, and what terms and conditions must it incorporate for it to be valid and enforceable?
Ensure that all the important terms of your sale agreement are recorded in writing and signed.
Leave out anything “material” and, as we shall see from the Supreme Court of Appeal case discussed below, your entire sale could well collapse. At the very least, you face significant legal consequences, delay and cost.
The omitted term that sank a R4.5m sale (after 7 years’ delay)
The formalities required for validity
In this case, the omission of a subdivision term had created uncertainty about the parties’ rights and obligations concerning the subdivision process, including responsibility for costs and potential consequences if approval was not granted. Their failure to record in writing their agreement on these issues (if indeed they ever reached one) rendered the whole sale invalid.
Note that your written agreement must be clear in itself, sufficiently accurate and comprehensive to avoid any need for oral evidence on any of those critical issues.
Takeaways
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