Installment Sale Agreement
INSTALMENT SALE AGREEMENT
1. PARTIES
1.1 The parties to this agreement are –
1.1.1 …………………………; the seller and
1.1.2 …………………………; the purchaser whose details appear in item 0 of the schedule attached hereto.
1.2 the parties agree as set out below.
2. INTERPRETATION
2.1 In this agreement, unless inconsistent with or otherwise indicated by the context –
2.1.1 “the Act” means the Alienation of Land Act, No. 68 of 1981;
2.1.2 “the/this agreement” means the agreement as set out herein together with the Schedule and all appendices hereto, being a contract as
envisaged in Section 6 of the Act;
2.1.3 “the balance of the purchase price” means the purchase price minus the first payment;
2.1.4 “business day” means a day which is not a Saturday, Sunday or South African public holiday;
2.1.5 “the conveyances” means ………………………………………………………………………… of …………………………;
2.1.6 “the exclusive use area” means the exclusive use area identified as such in item 3.8 of the Schedule, if any;
2.1.7 “the effective date” means the date on which the suspensive condition in and 4 below is complied with;
2.1.8 “the final payment” means the final payment specified as such in section 2, item 2.1 of the Schedule;
2.1.9 “the final payment date” means the date specified as such in section 0 of the Schedule;
2.1.10 “the first mortgage bond” means the first mortgage bond registered over the erf/unit as at the signature date, in favour of the person
referred to in item 0 of the Schedule;
2.1.11 “the first payment” means the first payment as such in item 2.4 in the Schedule;
2.1.12 “the first payment date” means the first payment date specified as such in item 2.3 of the Schedule;
2.1.13 “the instalment” means the monthly instalment specified as such in item 2.9 of the Schedule;
2.1.14 “the instalment due date” means the instalment due date specified as such in item 2.5 of the Schedule;
2.1.15 “the interest rate” means the fixed rate per annum specified as such in item 2.2 of the Schedule;
2.1.16 “occupied date” means the date on which the purchaser took de facto occupation of the property in terms of this agreement;
2.1.17 “the parties” means the seller and the purchaser;
2.1.18 “the promissory notes” means the promissory note which will comply substantially with the pro forma note contained in Appendix 1
hereto, issued in terms of the provisions of 7.1 by the purchaser to the seller in respect of the purchaser’s obligations to make payment
of the instalments in terms of the provisions of this agreement;
2.1.19 “the purchase price” means the total purchase price specified as such in item 2.1 of the Schedule;
2.1.20 “the purchaser” means the person whose details appear from item 1 of the Schedule;
2.1.21 “registerable” means capable of being registered as the subject of a separate title deed in a Deeds Registry in that the requirements of
any law relating to such registration have been complied with;
2.1.22 “registered owner” means the registered owner, as at the signature date, of the land on which the unit is constructed, whose details
appear in item 4.1 of the Schedule;
2.1.23 “SARS” means the South African Revenue Service;
2.1.24 “the Schedule” means the schedule attached hereto;
2.1.25 “the seller” means …………………………….. (an individual/a private company duly incorporated in the Republic of South Africa, with
registration number ……………………………) acting as agent for the owner of the unit, if item 5 of the Schedule is completed, or acting
in its own right, if item of the Schedule is not completed;
2.1.26 “the signature date” means the date upon which this agreement is signed by the party signing last in time;
2.1.27 “the unit” means the unit identified in item 0 of the Schedule and including any exclusive use area (if any);
2.1.28 “VAT” means value-added tax payable in terms of the Value Added Tax Act, No. 89 of 1991;
2.1.29 any reference to the singular includes the plural and vice versa;
2.1.30 any reference to natural persons includes legal persons and vice versa;
2.1.31 any reference to gender includes the other genders;
2.1.32 the clause headings in this agreement have been inserted for convenience only and shall not be taken into account in its interpretation;
2.1.33 Words and expressions defined in any sub-clause shall, for the purpose of the clause of which that sub-clause forms part, bear the
meaning assigned to such words and expressions in that sub-clause.
2.2 If any provision in a definition is a substantive provision conferring rights or imposing obligations on any party, effect shall be given to it
as if it were a substantive clause in the body of the agreement, notwithstanding that it is only contained in the interpretation clause.
2.3 If any period is referred to in this agreement by way of reference to a number of days, the days shall be reckoned exclusively of the first
and inclusively of the last day unless the last day falls on a Saturday, Sunday or public holiday, in which case the last day shall be the
next succeeding day which is not a Saturday, Sunday or public holiday.
2.4 This agreement shall be governed by and constructed and interpreted in accordance with the law of the Republic of South Africa.
3. PURCHASE AND SALE
3.1 The seller sells the unit to the purchaser who hereby purchases same from the seller on the terms and conditions set out in this
agreement.
3.2 The seller hereby undertake to procure that the unit shall be registerable by the date specified in item 0 of the Schedule.
4. SUSPENSIVE CONDITION
4.1 This agreement is subject to the purchaser qualifying as a beneficiary with the Provincial Housing Department. The above suspensive
condition is only applicable when the purchase price of the unit is being subsidized by the Provincial Housing Board.
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