OFFER TO PURCHASE PROPERTY

OFFER TO PURCHASE

By:.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

(“the Purchaser�)

To:..............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

(“the Seller�)

The Purchaser hereby offers, through the agency of Swan Properties (“the Agency�), to purchase the Property mentioned below, from the Seller on the terms and conditions contained in this agreement:

FULL TITLE

Stand Number:.......................Street Address...........................................................................................................

Suburb: ........................................................ Township:………….…........................................................................

or

SECTIONAL TITLE

Unit Number........... Flat / Townhouse number …...... Stand number................ in the Scheme…....... ……………………..in the Township of ....................................... together with an undivided share in the common Property in the scheme and the exclusive use and enjoyment of the following areas of the common Property and / or buildings namely:……………………………………......................................................................................

and carport/garage number. ................

(“the Property�)

1.            SALE AND PURCHASE

The Seller hereby sells to the Purchaser the Property together with all permanent improvements, fixtures and fittings which will include the following:

1.1          Including:

Built in stove (stovetop and oven); built-in units and cupboards electrical installations and light fittings; curtain fittings and rails; wall –to- wall carpeting; blinds and awnings; swimming pool pumps and engines; swimming pool equipment and automatic swimming pool cleaners in working order on date of occupation, installed alarm system, electronic consoles and existing keys; built-in braai and accessories, all fencing and trees; shrubs and plants; television aerials and satellite dish (including M-net and DSTV connections); built-in heaters, built-in air conditioning systems; tennis court nets, bar stools.

(Delete whichever is not applicable)

1.2          Also including: ………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………………….………which include accessories the Seller warrants to be paid for in full and to be the sole beneficial owner of

1.3 Excluding:…………………………………………………............................................................................................

............................................................................................................................................ ………………………….

2.            PURCHASE PRICE

The purchase price of the Property is the sum of R ..................................... (…………………………………. ........................................................ rand) (value added tax included if applicable), payable as follows: (read together with clause 19)

2.1          A DEPOSIT for the amount of R.............................. (……………………………..…................................................. …………………………………………………….………………………………………………………………..……rand);

The Purchaser shall pay the deposit or the full purchase price to the conveyancer within .................... (................................................) days to be kept in trust until registration of the transfer by the conveyancer, in an interest bearing account at a financial institution of his choice. The interest accrued on the amount shall be for the benefit of the Purchaser.

3.            SUSPENSIVE CONDITIONS

3.1          The Purchaser shall apply for a LOAN in the amount of R….............................................................................

(.......................................................................................................................................................................rand);

This agreement is subject to the suspensive condition that the Purchaser receives approval of the loan within.................. (......................................) days after signature of this agreement, from a financial institution, against registration of a first mortgage bond over the Property.

3.1.1      The Purchaser shall apply for such a loan on the first business day after acceptance of this offer by the Seller. In this regard the Agency is irrevocably authorised to apply for such loan through Bond Choice Home Loans on behalf of the Purchaser, at Banks and/or other Financial Institutions which may be appropriate under the circumstances.

3.1.2      The Purchaser undertakes to provide all documentation and information that may be necessary to fulfil the above mentioned conditions on request from the Agency/Seller/Bank Consultant. The loan obtained by the Purchaser shall be subject to the normal terms and conditions of banks and/or other financial institutions, where the application for the Bond was made.

3.1.3      If the Purchaser’s loan is not approved within the provided time period, the period will automatically be extended with 14 (fourteen) days.

3.2          The SALE of Purchaser’s Property for the amount of R.....................................................................................

(....................................................................................................................................................................... rand)

or for such a lesser amount as the Purchaser may accept. This agreement is subject to the suspensive condition that the Purchaser sells his Property, with Property description...............................................................

………………………………………………………………………………………………………………………………….within …………………..(……………………………………….) days after signature hereof.

3.2.1      The Purchaser must sell his Property described in clause 3.2 (“the Purchaser’s Property�). The Seller is aware that the Purchaser will apply the net proceeds of such sale to meet his obligations in terms of this agreement. The Purchaser’s Property shall be considered sold if:

3.2.1.1   a purchase and sale agreement of the Purchaser’s Property is entered into within the period stipulated in clause 3.2. and

3.2.1.2   all the suspensive conditions in the sale agreement of the Purchaser’s Property are fulfilled.

3.2.2      It is consequently agreed that:

3.2.2.1   The Purchaser shall receive a guarantee for the payment of the purchase price, or a part thereof, of his

Property within …………(………………………………………..) days after the conditions in 3.2.1 have been fulfilled, which guarantees shall be delivered to the Seller or his conveyancer;

3.2.2.2   Registrations of the transfer of the Purchaser’s Property shall take place within a reasonable time;

3.2.2.3   If the Purchaser’s Property has already been sold at the time of signature of this agreement, the time periods as set out above will be applicable to such transaction;

3.2.2.4   if the Seller receives an unconditional offer to purchase the Property before the conditions contained in 3.2.1.1 and 3.2.1.2 are fulfilled, the Seller shall deliver to the Purchaser a copy of such offer, whereupon the Purchaser shall be obliged to fulfil such conditions within 5 (five) days, or to waive the conditions contained in clause 3.2. The Purchaser shall give written notice to the Seller regarding his decision failing which this offer shall expire immediately and any amount already paid by the Purchaser shall be reimbursed together within any interest accrued thereon.

3.3          ANOTHER SOURCE for the amount of R……………………………………………………………………………..

(....................................................................................................................................................................... rand)

Other source/Other: ...........................................................................................................

Written proof of the existence of the other source shall be provided to the conveyancer within ..................... (..................................................) days after the signature date of this agreement..

4.            GUARANTEES

The full purchase price/balance of the purchase price shall be payable to the Seller against registration of transfer of the Property into in the name of the Purchaseer and shall be secured by a bank or other acceptable guarantee furnished by the Purchaser within .................... (...........................................) days after signature of this agreement, and if this offer is subject to any suspensive conditions within 14 (fourteen) days after fulfilment of the suspensive condition(s).

5.            OCCUPATION

5.1          Undisturbed occupation of the Property shall be given to the Purchaser on REGISTRATION or as otherwise agreed between the parties in writing, as soon as all suspensive conditions in terms of this agreement have been fulfilled

5.2          In the event of the Property being let to a tenant, the Purchaser’s right to occupation will be subject to the tenant’s rights in terms of the lease agreement. The rental income will still be due to the Seller until date of registration of transfer into the name of the Purchaser.

6.            RISK AND BENEFIT

On date of registration the transfer, all risks of damage in connection with the Property and ownership shall be transferred to the Purchaser, together with all the benefits and responsiblities for payment of any rates, Property taxes and/or expenses in connection with the Property. The Purchaser shall also be responsible to insure the Property against any contingency

7.            LEVIES

                SECTIONAL TITLES

The Purchaser confirms that he/she is aware that:

7.1          The Property is subject to the conditions of the Sectional Title Act, nr 95 of 1986;

7.2          The Property is situated within a Sectional Title Scheme which inter alia means that the Purchasers shall receive ownership of the Property and that he / she shall also have a right to sell or lease the Property;

7.3          The Purchaser of a unit automatically becomes a member of the Body Corporate, a non-profit organisation in terms of the Sectional Title Act. The Purchaser agrees to conform to the rules of the Body Corperate;

7.4          The developer has registered a real right of extension in terms of the section 25(9) of Act 95 of 1986 and that until such right does no longer exist, the Purchaser’s right shall be subject to the real right of extension of the developer.

HOMEOWNERS ASSOCIATIONS

7.5          The Purchaser is aware that a homeowners association exist to which he/she becomes a member with transfer of the Property and will therefore be bound by the constitution of the Homeowners Association.

7.6          A monthly Homeowners Association / Body Corporate levy in the amount of R……….............(…………...............

...................................................rand) per month, is payable to ................................................................... at Telephone Number. .........................................................................

8.            TRANSFER AND COSTS

The conveyancer shall ensure the registration of the transfer immediately after all the suspensive and all other relevant conditions as set out in this agreement have been fulfilled. Transfer and bond costs must be paid on request, immediately by the Purchaser to the transfer- and bond attorneys. The Purchaser and Seller must immediately and on request, provide all information and sign all documents in order to ensure registration of the Property and/or bond(s) over the Property.

9.            VOETSTOOTS

The property is sold VOETSTOOTS, subject to all conditions of title and servitudes contained in the current and/or previous Title Deeds of the Property, which are available for public inspection at the relevant deeds office, as well as any new conditions of title and servitudes that may exist regarding the current condition and size of the Property. The Agent shall not be liable for any patent or latent defect in the Property, nor for any damages suffered by the Purchaser as a result of such defect. All parties declare that they are acquainted with the VOETSTOOTS clause and the legal effect thereof. The Property is sold in its current condition, excluding any normal wear and tear from the date of signature of this agreement to date of registration.

10.          GUARANTEES AND WARRANTIES BY THE SELLER

10.1        The Seller warrants that he has provided all relevant information relating to the Property and the condition thereof to the Agency in writing. The Seller hereby indemnifies the Agency against any liability in the event of the Purchaser instituting a claim against the Agency due to any defects in the Property not disclosed by the Seller.

10.2        The Seller is not responsible to point out the surveyor’s beacons demarcating the boundaries of the Stand to the Purchaser, and is also not liable to pay the cost to determine such boundaries.

10.3        The Purchaser confirms that neither the Seller, nor anyone on his behalf have provided any warranties or given any guarantees in respect of any aspect relating to the quality of the Property which are not contained in this agreement.

10.4        The Seller confirms that:

10.4.1    The purchase price is sufficient to settle all outstanding obligations relevant to the sale of the Property, including but not limited to the existing bonds, agent’s commission, outstanding statutory fees and/or levies, or any other costs normally associated with the transfer of Property.

10.4.2    In the event of any shortfall as referred to in 10.4.1 above, such shortfall shall be paid by the Seller to the conveyancer on demand.

 10.5       In lieu of the fact that the South African Revenue Service (SARS) conducts a risk analyses on both the Purchaser and Seller with the issue of transfer duty receipts in Property transactions, both the Purchaser and Seller warrant to each other and the agent that all taxation issues (personal and/or other), including, but not limited to tax returns and payments, have been submitted and paid timeously.

11.          DELAYS

The Property shall within a reasonable period after signing of the agreement be registered in the name of the Purchaser. Should any party cause an unreasonable delay in the transfer process, the party who is responsible for the delay shall be liable to the other party for interest to be paid at the prime rate plus 2% (two percent) on the purchase price calculated for the period of the delay.The aggrieved party shall in terms of this clause, be entitled to claim penalty interest from the party responsible for the delay. This remedy is in addition to any other remedy the aggrieved party may have in law or in terms of this agreement.

12.          JURISTIC PERSON AND AUTHORITY        

12.1        Juristic person: If the person signing this agreement, signs as Trustee, on behalf of a legal entity (Company or Close Corporation) to be registered, then it is specifically recorded that unless the legal entity is registered and ratifies this agreement within 30 (thirty) calendar days after signature of this agreement, such person by his signature hereto shall be deemed to have signed the agreement in his personal capacity. If the legal entity is however registered timeously, the signatory binds himself as surety for and co-principal debtor in solidium with the said legal entity for the due performance of its obligations in terms of this agreement.

12.2        Representation: Any natural person signing on behalf of a juristic person, whether registered or still in the process of registration, personally warrants that the entering into of this agreement by the juristic person concerned is within the scope of its powers, objects and authority and does not contravene any provisions of the Companies Act 61 of 1973, the Close Corporations Act 69 of 1984 or the Trust Property Control Act 57 of 1988, and that all the necessary steps have been taken to give the signatory the power to execute this agreement on behalf of the juristic person and in particular, but without limitation, the directors, members or trustees have approved this agreement in specific terms

12.3        Surety: If the Purchaser signs this agreement in his capacity as representative of a Trust, Company or other legal entity, the signatory binds himself as surety for and co-principal debtor in solidium with the said legal entity for the due performance of its obligations in terms of this agreement. Such a representative hereby waives all legal exceptions, including but not limited to the following: no cause of indebtedness, revision of accounts, the benefit of excussion, and the benefit of division – the nature and content of which he is aware of and undertstands.

13.          BREACH

13.1        Should either the Seller / Purchaser breach any of the terms of this agreement and fail to remedy such breach within 14 (fourteen) days after receipt of either a hand delivered notice, or a notice dispatched by prepaid registered post to the defaulting party’s domicilium calling upon the defaulting party to remedy the breach, then the aggrieved party shall, without prejudice to any other rights that he may have, be entitled to:

13.1.1    cancel this agreement and institute action for damages sustained; alternatively;

13.1.2    claim specific performance in terms of this agreement, together with damages.

13.2        In the event of the agreement being cancelled as a result of a breach by the Purchaser, the Purchaser is obliged to vacate the Property immediately (in the event of the Purchaser already occupying the Property) and the Seller is entitled to retain all amounts paid by the Purchaser together with any interest thereon as a pre-estimate of damages, alternatively, to retain such amounts until such time as the Seller’s claim have been determined and such amounts are off-set against each other.

14.          ELECTRICAL COMPLIANCE CERTIFICATE

14.1 The Seller is obliged to deliver to the Conveyancer, at his own expense, a certificate of compliance issued by a qualified electrician in terms of the Electrical Installations Regulations of 1992, promulgated under Act 6 of  1983 and amended under Act 85 of 1993 (an “accredited person�), with regard to the wiring of the Property, wherein the electrician states that he has examined the wiring from the point of entry of the Property to the utitlity point and found it reasonably safe, and guarantees that the wiring meets the requirements set in the Code for wiring the premises SABS 0142 M or the substitute thereof.

14.2 Should the Seller fail to deliver the certificate before the date of registration, the Purchaser shall be entitled to appoint a  qualified electrician to issue the abovementioned certificate for the account fo the Seller, and he will be entitled to deduct such costs form the purchase price.

14.3 Any defect in the wiring discovered during the abovementioned examination must be rectified by the Seller before transfer of the Property, failing which the Purchaser shall be entitled to rectify it for the account of the Seller, and he will be entitiled to deduct such costs from the purchase price.

14.4 The Seller undertakes not to make any changes in respect of the electrical installations in the Property after delivery of such certificate.

15.          BEETLE CERTIFICATE (Kwazulu Natal / Cape Province)

The Seller shall at his own expense arrange for the accessible portions of the building/s on the Property to be inspected by a government accredited entomologist and/or qualified, accredited firm for insfestation by visible wood borer beetle (“Oxypleuris Nodierie, Hylotrupes Bajulus and Anobium Punctatum�) and prior to registration of transfer furnish the Purchaser with a certificate by the aforesaid entomologist and / or firm recording that the accessible timbers of the buildings were inspected and found to be free from such infestation or that such infested timbers had been treated / removed and replaced with pre-treated timbers by a qualified reputable contractor. (*Delete whichever is not applicable)

16.          AGENTS COMMISSION 

16.1        The parties confirm that............................................. of _______________________________ was the effective cause of this agreement.

16.2        Agent’s commission shall be paid by the Seller in the amount of

is deemed to be earned on fulfilment of the suspensive condition/s, which is due and payable on the registration of  the transfer of the Property into the name of the Purchaser.

16.3        The Agency shall be entitled to and the Seller shall remain responsible for payment of the agent commission and/or damages should the agreement not continue or be cancelled as a result of any failure by the Seller to fulfil his obligations in terms of this agreement.

 16.4       The Agency shall be entitiled to and the Purchaser responsible for the payment of the agent commission and/or damages, should a binding agreement not be signed or if the agreement cannot continue, or if the agreement is cancelled as a result of the Purchaser’s failure to comply with his obligations in terms of this agreement.

16.5        The Agency shall be entitled to payment of the agents commission should the Seller and Purchaser agree not to proceed with this agreement. The Seller and Purchaser will in such event jointly and/or severally be liable for payment of the agent’s commission, regardless whether the suspensive condition(s) have been fulfilled or not.

16.6        Should any dispute arise between the party(ies) and the Agency in respect of the agents commission, the party(ies) and the Agency hereby agree to refer the dispute for arbitration to the Arbitration Tribunal of the Estate Agency Affairs Board. The constitution and procedural rules of the Tribunal are herewith fully incorporated into this agreement and as such it forms an integral part thereof. The referral to arbitration shall be solely at the Agency’s discretion and the Agency shall be entitled to proceed with litigation instead.

17.          COOLING-OFF PERIOD

The parties confirm that they are fully aware of their rights in terms of Section 29(A)(1)of the Alienation of Land Act 68 of 1981 (as amended), in terms of which the Purchaser is entitled to recall his offer by written notice to the Seller, should the purchase price be less or equal to R250 000.00 (two hundred and fifty thousand rand) within 5 (five) business days after signature of this offer by the Purchaser.

18.          SOLD BOARDS

The Seller and Purchaser herewith give their consent to the display of a for sale/sold board in front of the Property for a period of 3 (three)months after all suspensive conditions have been fulfilled.

19.          VALUE-ADDED TAX (VAT)

If the Seller is registered as a value added tax vendor and the transaction is subject to payment of value added tax, the value added tax will be included in the purchase price and it is the responsibility of the Seller to pay such value added tax to the South African Revenue Service on registration. In the event that value added tax in payable, no transfer duty shall be payable by the Purchaser. If the Seller confirms that he is not registered for value added tax, transfer duty shall be payable by the Purchaser on the purchase price.

20.          GENERAL

20.1        No failure, omission of waiver or relaxation of any of the provisions of this agreement, nor any failure by a party to enforce the provisions of this agreement due to any breach, shall operate as an estoppel against any party in respect of its rights, under this agreement, nor shall it preclude such party thereafter from exercising its rights strictly in accordance with this agreement.

20.2        No rights in terms of this agreement may be ceded, delegated and/or transferred without the written consent of the other party.

20.3        Signature of this agreement refer to the date on which the Seller accepts the offer.

20.4        Days in this agreement refers to calendar days, Saturdays, Sundays and public holidays included, the first day excluded and the last day included. If the agreement is forwarded by registered post, the day on which the Post Office’s slip is issued shall be included.

20.5        The Purchaser and Seller herewith choose as domicilium citandi et executandi, the addresses as stated in the information sheet, for the service and/or delivery of all notices and documents in terms of this agreement.

21.          SPECIAL CONDITIONS

............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

22.          ACCEPTANCE

This offer is irrevocable until ......................:00 (…………..............hours) on the …………………………….. (………………………………) day of ……………………………………..20……….. and is binding on the parties by acceptance hereof without the Purchaser having to be informed of the Seller’s acceptance.

23.          WHOLE AGREEMENT

This agreement constitutes the entire agreement between the parties and no conditions, stipulations, warranties or representations of whatsoever nature shall be of any force or effect unless reduced to writing and signed by both parties.

OFFER MADE BY ME/US

At __________________________________                  on this        day of                             .20

.......................................................                       ………………………………………………......

     WITNESS                                                                                                                                         PURCHASER

.........................................................                    …………………………………………….…….

WITNESS                                                          CO - PURCHASER

OFFER ACCEPTED BY ME / US

at ...................................... on this ................ day of………......................................20…………. and we/I hereby give instruction to attorneys ................................................................................... to register the transfer of the Property.

.............................................................                                                               ………..…………………………………………

WITNESS                                                                                                                              SELLER

..............................................................                                                                             ………………………..…………………………

WITNESS                                                                                                                              CO - SELLER

The Agency herewith accepts the benefits, which they will receive from the agreement.

.............................. ..............................                                                               …………..………………………………………

AGENT                                                                                                                  PRINCIPAL

INFORMATION FOR TRANSFERRING ATTORNEY

PURCHASER(S): PURCHASER A/ PURCHASER B ___________________________________________

Full name & surname (if married woman, give maiden name) ________________________________

Name & number of Company / CC / Trust. _______________________________________________

(Full names & surnames of Directors / Members)___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

ID Number / Passport Number / Registration Number    ______________________________________          

Current Physical address ____________________________________________________________________________________________________________________________________________________________________

Postal address ____________________________________________________________________________________________________________________________________________________________________

Date of birth and place of birth                  ____________________________________

Marriage Regime ( in community / out of community of Property) _________________________

Antenuptial no and where registered / country of contract marriage, if no South Africa __________________________________________________

Contact numbers : Home                             ____________________________

                              Work                                      ___________________________

                              Fax                                           ___________________________

                              Cell                                           _________________________

                              E-mail                                      ___________________________

Income Tax Number                                       __________________________

Value added tax Registration Number    __________________________          

I/we certify the above information to be correct.

………………………                     ……………………………..               ………..……………….

          DATE                                         PURCHASER A                             PURCHASER B

 INFORMATION FOR TRANFERRING ATTORNEY

SELLER(S) :          SELLER A

____________________________________________________________________________________________________________________________________________________________________Full name & surname (if married woman, give maiden name)Name & number of Company / CC / Trust.

(Full names & surnames of Directors / Members) _________________________________   

ID Number / Passport Number / Registration Number _____________________________

Current Physical address ____________________________________________________________________________________________________________________________________________________________________

Postal address

____________________________________________________________________________________________________________________________________________________________________

Date of birth and place of birth ________________________________________________               

Marriage Regime ( in community / out of community of Property)_____________________   

Antenuptial contract no and where registered / country of marriage, if no South Africa                 

Contact numbers : Home                             ____________________________________

                              Work                                       ____________________________________

                              Fax                                           ____________________________________

                              Cell                                           ____________________________________

                              E-mail                                      ____________________________________

Income Tax Number                       __________________________________________________

Value added tax Registration Number                    ____________________________________

1st  Bond holder :Bank   Branch: Acc No:                 ____________________________________

2nd Bond holder : Bank                 Branch: Acc No:                 ______________________________________

3rd  Bond holder : Bank                 Branch: Acc No:                 _______________________________________

I/we certify the above information to be correct.

………………………                     ……………………………..               ………..……………….

          DATE                                               SELLER A              …                   SELLER B

TRANFERING ATTORNEYS           

Firm :     Firm : ___________________________________________________________

Contact Person : ___________________________________________________________

E-mail :                 E-mail _____________________________________________________________

BOND ATTORNEYS _________________________________________________________

 Contact Person : __________________________________________________________

E-mail :                 E-mail _____________________________________________________________

AGENT:                Contact number:  _____________________________________________________