6. Contents of contract

6. Contents of contract.—(1) A contract shall contain—

 

(a)    the names of the purchaser and the seller and their residential or business addresses in the Republic;

(b)    the description and extent of the land which is the subject of the contract;

(c)    if the seller is not the owner of the land, the name and address of that owner;

(d)    if the land is encumbered by a mortgage bond, the name and address of the person, or his representative or, in the case of a participation bond, the name and address of the nominee company, or its representative, in favour of whom the mortgage bond over the land is registered at the time the contract is concluded;

(e)    the amount of the purchase price;

( f )    the annual rate at which interest, if any, is to be paid on the balance of the purchase price;

(g)    the amount of each instalment payable under the contract in reduction or settlement of the purchase price and interest (if any);

(h)    the due date or the method of determining the due date of each instalment;

(i)    if the land is sold by an intermediary, the name and address of every other intermediary who alienated the land prior to the date the contract is concluded;

( j)    the amount or amounts of any transfer duty (if any) payable in terms of the Transfer Duty Act, 1949 (Act No. 40 of 1949), in respect of the land, and the name of the person or persons by whom such duty is to be paid;

(k)    the dates on which and the conditions on which the purchaser shall be entitled to take possession and occupation of the land;

(l)    the place where the payments shall be made;

(m)    the date on which the risk, profit and loss of the land shall pass to the purchaser;

(n)    a statement of the obligation (if any) of the purchaser to insure the subject matter of the contract;

(o)    a statement—

(i)    of any amount which in terms of any law is payable in respect of the land as endowment, betterment or enhancement levy, a development contribution or any similar imposition and an indication of the person to and the person by whom it is so payable; and

(ii)    that no amount contemplated in subparagraph (i) is payable in respect of the land, if such is the case;

(p)    

    an indication of the party who shall be liable for the payment of the costs of—

(i)    the drafting of the contract;

(ii)    the recording thereof in terms of section 20; and

(iii)   the transfer of the land;

(q)    if the land is not the subject of a separate title deed at the time the contract is concluded, the latest date at which the land shall be registrable in the name of the purchaser;

(r)    if the seller is the owner of the land, an undertaking by him that the land shall not be encumbered or further encumbered by a mortgage bond on or before the date on which the contract is recorded in terms of section 20;

(s)    the period within which the purchaser is obliged or may be compelled to take transfer of the land against simultaneous payment of all amounts owed by him in terms of the contract;

(t)    a reference to—

(i)    the right of a purchaser under section 11 to perform the obligations of the owner or an intermediary;

(ii)    the right of the purchaser under section 17 to accelerate payments in terms of the contract and to claim transfer of the land against simultaneous payment of all the amounts payable by him to the seller in terms of the contract;

(iii)    the right of the purchaser under section 20 to have the contract recorded;

(iv)    the rights and remedies of the purchaser under sections 13 (2), 16 (3), 23 and 27;

(v)    the obligation of the purchaser—

(vi)    the limitation in terms of section 19 of the right of the seller to take action by reason of any breach of contract on the part of the purchaser.

(2) The date which is stated in a contract in terms of subsection (1) (m), shall not be earlier than the date which is stated therein in terms of subsection (1) (k) as the date on which the purchaser shall be entitled to take possession of the land.

(3) The aggregate amount of the instalments referred to in subsection (1) (g) which are to be paid during any of successive periods of 12 months following on the date of the contract, shall not be less than the interest which, in terms of the contract, would become payable during that period if all instalments were paid timeously.

(4) The date stated in a contract in terms of subsection (1) (q), shall not be later than five years from the date of the contract.

(5) If for whatever reason the seller is unable, after the date referred to in subsection (4), to tender transfer of the land against simultaneous payment of all the amounts payable to him by the purchaser in terms of the contract, the purchaser may cancel the contract, in which event the parties shall be entitled to the relief provided for in section 28 (1), or the purchaser may abide by the contract, in which event no interest shall be payable by him in terms of the contract as from the date in question until such time as such transfer is tendered: Provided that this subsection shall not detract from any additional claim for damages which the purchaser may have.

 

7. Sale of land encumbered by mortgage bond.—(1) If the land sold in terms of a contract is encumbered by one or more than one mortgage bond, the seller shall within 30 days after the conclusion of the contract hand to the purchaser or send to him by registered post a certificate, drawn up and dated not more than four months before the conclusion of the contract, by each mortgagee, in which is indicated the amount the mortgagee requires to be paid in terms of section 9 for the discharge of his mortgage bond or for the release of the land from his mortgage bond, as the case may be, as well as the rate or rates at which interest shall be levied as from the date of the certificate.

 

(2) Any certificate contemplated in subsection (1) shall irrevocably bind the mortgagee concerned and any successor in title of him for a period of four months as from the date of such certificate, and shall operate in favour of any person to whom the land is or has been alienated.

 

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