Agreement of Sale - aktepraktyk.co.za

1 Assignments for Chapter 3. Agreement of Sale Centre for Conveyancing Practice Total number of marks asked from this chapter Paragraph 3 - Provisions of an Agreement of Sep 2009 - 6 July 2004 - 36. sale iii May 2000 - 20 Sep 2003 - 0. PARAGRAPH: SUSPENSIVE CONDITIONS. Sep 2008 - 10 May 2003 - 18. May 2008 - 0 Sep 2002 - 12. Sep 2007 - 0 Question 3 (Part 1) September 2009 [6]. May 2002 - 0. May 2007 - 10 Sep 2001 - 0. Sep 2006 - 10 Sean Crom well wishes to purchase Erf 9939 Seaview May 2001 - 0. May 2006 - 6 Sep 2000 - 20 from Mary W hite. In order that Crom well will be in a Sep 2005 - 22 May 2000 - 25 position to finance the transaction, it is essential that the May 2005 - 10 Sep 1999 - 0 purchase be m ade subject to the sale of Crom well's Sep 2004 - 20 May 1999 - 15 existing property, Erf 1003 Heatherton, for a sum not less than R975 000,00, the proceeds of which sale will An average of m arks from 22 papers be appropriated towards the purchase price payable by Crom well to Mary W hite.

2 Im portance: of the exam ination paper Draw such condition as m ay be required for insertion in Paragraph 2 - Formalities of an Agreement of the deed of sale between Mary W hite and Crom well in sale order to protect Crom well's interests as purchaser. Question 9 (Part 2) September 2005 [6] See under paragraph below Question (Part 1) May 2009 as part of Question 7. Section 2 of the Alienation of Land Act of 1981 contains the form alities in respect of agreem ents of alienation. Question 2 (Part 1) September 2008 [10]. Describe these formalities in your own words. Ben Blaps is the registered owner of erf 12 Putfontein Township. There is a m ortgage bond registered over the ANSW ER. property in favour of Back Break Bank for the capital A deed of alienation m ust be in writing and signed by the sum of R900 0000.

3 Parties or their agents acting on their written authority. Ben Blaps wishes to purchase erf 20 Putfontein If the purchaser has the right to revoke the offer or to Township from Zeezee Top but cannot do so without the term inate the deed of sale in term s of Section 29A of the sale and registration of transfer of erf 12 Putfontein Act (cooling off clause), this m ust be contained in the Township. The agreem ent of sale between Ben Blaps agreem ent. and Zeezee Top m ust therefore be m ade subject to the sale of Ben Blaps' existing property, erf 12 Putfontein (See further questions on formalities of Agreement of Township, for not less than R900 000,00. The proceeds sale under the assignments titled: The Big Five - of this sale will be appropriated towards the purchase assignment on chapter 2 - Alienation of Land.)

4 Price payable by Ben Blaps to Zeezee Top. Chapter 3 - Agreement of Sale 1 Centre for Conveyancing Practice - 2013. Draw such condition as m ay be required for insertion in (c) should the seller receive any offer from another the deed of sale between Ben Blaps and Zeezee Top in person, the purchaser will be entitled to declare order to protect Ben Blaps' interests as purchaser. the agreem ent unconditional or m atch the other offer, failing which the seller shall be entitled to Question 8 (Part 1) M ay 2007 [10] accept the other offer. You are instructed to draw a deed of sale. The balance Prepare the necessary clauses to give effect to the of the purchase price, nam ely R50 000,00, m ust be paid aforesaid. from the proceeds of a loan to be obtained from a bank.

5 ANSW ER: See the exam ple of an outside offer in Draw only the suspensive condition in the deed of sale Chapter 3, Agreem ent of Sale . relating to the obtaining of a loan. Previously asked in Question 5 (Part 1) M ay 1999 for Previously asked in Question 6 (Part 1) M ay 2005 for 8 m arks. 10 m arks. PARAGRAPH: BREACH / CANCELLATION OF. PARAGRAPH: OUTSIDE OFFER CONTRACT (& SUSPENSIVE CONDITION). Question 12 (Part 1) M ay 2011 [8] Question 7 (Part 1) M ay 2009 [20]. David Cooke m akes an offer to your client John Sm ith, to You have been instructed to prepare an agreem ent of purchase a property from him . The term s of the offer to sale relating to a dwelling on behalf of the Seller. Draft purchase are such that transfer will only take place in 18 only the following clauses in order to protect your client's m onths tim e and is subject to the purchaser receiving interests: funds from the proceeds of the sale of certain shares he owns by 15 March 2009.

6 A breach clause where you are also to take the following into consideration, nam ely: Notwithstanding the suspensive condition and the fact that transfer is still som e tim e away, the price offered is a deposit is to be paid to the seller's attorneys such a good one that your client wishes to accept the and shall be forfeited on cancellation of the offer. agreem ent due to the purchaser's breach;. As a prudent conveyancer you suggest that a suitable occupation will occur before transfer and the clause be incorporated in the offer to afford your client an purchaser m ust vacate the property in case of opportunity of possibly accepting another offer in the cancellation due to the purchaser's breach. interim period on term s m ore advantageous.

7 A suspensive condition which will be fulfilled Draft the clause upon approval of a loan of R1 500 000,00 to the purchaser. Question 15 (Part 1) M ay 2003 [18]. Provide your own further particulars, where necessary, to You have been instructed to prepare a deed of sale m ake the conditions as com prehensive as possible. where: Question 3 (Part 1) September 2000 [20]. (a) the property is being sold subject to the fulfilm ent of a suspensive condition in favour of the Draft the following: purchaser; and a breach clause in terms of an Agreement of (b) the seller will, pending the fulfilm ent of the sale where you are also to take the following suspensive condition, be entitled to m arket the into consideration, namely: property and receive written offers from other parties (an outside offer); and a deposit has been paid in term s of the agreem ent to the seller's attorneys.

8 Chapter 3 - Agreement of Sale 2 Centre for Conveyancing Practice - 2013. occupation in term s of the agreem ent is any of those docum ents, specify those to take place prior to transfer . (12) requirem ents. (3). A bond clause in an Agreement of sale where In the circum stances of this transaction, is there the purchaser requires a bond of R1 500 000,00. any special requirem ent of law which, if not m et, (8) will invalidate the transaction? (2). ANSW ER: See the exam ple of a breach clause in If you had prepared the deed of sale, would you Chapter 3, Agreem ent of Sale . have inserted any special provisions in order to protect the seller and/or in order to provide greater flexibility in the form ation of the com pany? If your answer is in the affirm ative, Paragraph 4 - Purchase on behalf of a company you are not required to draft any specific or close corporation to be formed clauses, but m erely to indicate briefly what those iii provisions would be.

9 (3). Question 4 (Part 2) M ay 2011 [12] Question 13 (Part 2) September 2010 [13]. A deed of sale is concluded between John A deed of sale is concluded between John Sm ith, as seller and Peter Brown, as trustee for Sm ith, as seller, and Peter Brown, as trustee for a Close Corporation yet to be registered, as a Close Corporation yet to be registered, as purchaser. Upon registration of the close purchaser. Upon registration of the close corporation, what docum ents would you require corporation, what docum ents would you require the purchaser to furnish? (4) the purchaser to furnish? (4). Mr Sydney Septem ber sells his property Mr Sydney Septem ber sells his property described as Lot 402 Ottawa to Mr Adam Sm ith, described as Erf 402 Ottawa to Mr Adam Sm ith, who is in the process of registering a Close who is in the process of registering a Close Corporation.

10 Corporation. Describe the purchaser in the deed of Describe the purchaser in the deed of sale. (4). sale; (2). Draw a special clause to be inserted in the deed Draw a special clause to be inserted in of sale to protect the seller in case the Close the deed of sale to protect the seller. (6) Corporation is not registered. (7). Question 1 (Part 2) September 2010 [12] Question 1 (Part 1) September 2006 [10]. Your client, Chris Blyth, has sold Erf 919 Misty Point and Your client is the seller of a property which has been sold in the deed of sale (which was not prepared by you) the to a person who will sign the deed of sale as trustee for a purchaser is described as David W right in his capacity com pany or close corporation to be form ed.