Deed of Sale Attorneys in Cape Town

The deed of sale must clearly record the agreed purchase price and the terms on which it will be paid, including the deposit amount and payment date, whether the balance is payable from a bond or cash, and the date on which the full purchase price must be paid. Where the sale is subject to bond approval, the conditions and timeframe for obtaining that approval must be clearly stated.

Most residential property sales include one or more suspensive conditions, which are conditions that must be fulfilled before the deed of sale becomes unconditional. The most common suspensive condition is bond approval: the sale only becomes binding once the buyer obtains approval for a home loan from a financial institution within a specified timeframe. Other suspensive conditions may include the sale of the buyer’s existing property, the granting of a municipal permit, or any other matter that must be resolved before the parties are bound. The attorney will draft suspensive conditions precisely to avoid disputes about whether they have been fulfilled or lapsed.

The voetstoots clause, which means the property is sold as it stands, limits the seller’s liability for patent and latent defects in the property. Under the Consumer Protection Act, the voetstoots clause does not apply to sales by developers or estate agents acting in the ordinary course of business, and all sellers have an obligation to disclose known latent defects. The attorney will advise buyers on the implications of the voetstoots clause and the seller’s disclosure obligations, and they advise sellers on what they are required to disclose to avoid liability after transfer.

The deed of sale must specify the date on which the buyer takes occupation of the property, which may be on the date of registration of transfer or on an agreed earlier date. Where the buyer takes occupation before transfer, or the seller remains in occupation after transfer, an occupational rental is payable. The attorney will ensure that the occupation date and occupational rental provisions are clearly recorded and that the implications for rates and utilities are addressed.

Many property transactions require special conditions tailored to the specific circumstances of the parties or the property. These may include conditions dealing with movable items included in the sale, building or renovation work to be completed before transfer, the resolution of existing tenancies, or the settlement of homeowners association levies. They advise clients on the special conditions appropriate to their transaction and draft them in a way that is clear and enforceable.

A deed of sale must address what happens if one party fails to fulfil their obligations. This includes the remedies available to the innocent party in the event of breach, the notice required before the agreement can be cancelled, and the consequences of cancellation including the forfeiture or return of the deposit. They ensure that the default and cancellation provisions are balanced and clearly expressed, so that both parties understand their position if things go wrong.

In many property transactions, particularly those involving estate agents, the deed of sale is prepared by the agent or by the seller’s attorney and presented to the buyer for signature. Buyers often feel pressure to sign quickly and may not appreciate that the agreement was drafted to favour the seller. Our attorneys review deeds of sale from the buyer’s perspective, identify provisions that create risk or obligation that the buyer may not have anticipated, and advise on whether and how those provisions should be amended before signature.

Sellers who receive a buyer’s proposed deed of sale also benefit from legal review before signing. An agreement that appears straightforward may contain conditions or provisions that create difficulties at the transfer stage or expose the seller to claims after transfer.

Once a deed of sale has been signed and all conditions have been fulfilled, our conveyancing attorneys manage the full transfer process from lodgement through to registration at the Deeds Office.