1
AGREEMENT OF SALE AND PURCHASE OF A SECTIONAL TITLE UNIT
By
Capstone 237 CC
Registration number: 2008/246170/23
of
3 Byron Avenue, Senderwood, Johannesburg
(hereinafter referred to as “the Seller”)
and
(full names)
Identity/Registration Number
(hereinafter referred to as “the Purchaser”)
Telephone Number.
Fax Number.
Mobile Number
E-mail address
(hereinafter referred to as “the Purchaser”)
The Seller has established the sectional scheme HERITAGE ESTATE, being Erf 29 Westlake Township Ext 16 in terms of which the development shall be phased with the total number of units on completion being no more than 200 in accordance with the rights reserved in favour of the Developer in terms of Section 25 of the Sectional Titles Act No. 95 of 1986;
The Purchaser wishes to purchase a sectional title unit in HERITAGE ESTATE together with all rights attaching thereto from the Seller upon the terms and conditions set out in this agreement.
The Purchaser acknowledges that he is automatically bound by the Westlake View Springkell 16 Owners’ Association.
IT IS AGREED:
1.DEFINITIONS AND INTERPRETATION
In this agreement, unless the context appears to the contrary
1.1 “the Act” shall mean the Sectional Titles Act No.95 of 1986; and “the Housing Act” shall mean The Housing Development Schemes for Retired Persons Act No 65 of 1988 together with regulations.
1.2the following words, phrases and sentences shall have the following meanings assigned to them for the purposes of this agreement :
1.1.1.“architect” means an architect appointed by the Seller;
1.1.2.“body corporate” means the body corporate of the scheme referred to in Section 36 of the Act;
1.1.3. “building” means the building or buildings and all improvements comprising the scheme;
1.1.4. “common property” means the land and such parts of the buildings in the scheme as are not included in any sectional unit;
1.1.5. “conveyancers” means Calteaux and Partners;
1.1.6. “developer” means Capstone 237 CC;
1.1.7. “land” means the immovable property described as Erf 29, Westlake Township Ext 16;
1.1.8.“land surveyor” means Hennie Maartens;
1.1.9. “levy contribution” means the monthly amount payable to the body corporate for and in respect of the Property, which amount at the signature date is R______
RAND);
1.1.10.“occupation date” means ______
1.1.11.“parties” means the Seller and the Purchaser referred to as such in this agreement;
1.1.12.“participation quota” In relation to a section or the owner of a section, means the percentage determined In accordance with the provisions of Section 32(1) or (2) of the Act in respect of that section for the purposes referred to In Section 32(3) of the Act, and shown on a Sectional Plan In accordance with the provisions of Section 5(3)(g) of the Act;
1.1.13. “property” means the immovable property described as:
A unit consisting of:
(a)Section No. ______as shown and more fully described on the Sectional Plans in the scheme known as HERITAGE ESTATE in respect of the land and building or buildings situate at Peace Road, Modderfontein of which section the floor area, according to the said Sectional Plan is ______square metres in extent,and or ______
and
(b)an undivided share in the common property in the scheme apportioned to the said section in accordance with the participation quota as endorsed on the said sectional plan; together with such exclusive use areas as have been allocated to the Unit in terms of the rules.
1.1.14. “purchase price” means the amount of R______
______
______(RAND)
1.1.15.“qualifying person” a person who is 50 years of age or older, alternatively a person who is, in the discretion of the Trustees, fit to qualify. The qualifying person need not be the buyer, the latter who may be younger than 50 years of age.
1.1.16. “registration date” means the date of registration of transfer of the Property into the Purchaser’s name;
1.1.17. “rules” means the Rules of the body corporate as defined In Sections 1 and 35 of the Act together with any amended Rules in terms of Clause 6.4 of this agreement;
1.1.18. “scheme” means the sectional scheme “HERITAGE ESTATE”;
1.1.19. “signature date” means the date of signature of this agreement by the last of the parties to sign;
1.3words importing the masculine gender include the feminine and neuter gender and vice versa;
1.4 the headings to the various clauses are intended only for reference purposes and shall not be taken into account in interpreting the agreement;
1.5 the calculation of “days” shall include Saturdays, Sundays and official South African public holidays, and shall be calculated as being exclusive of the first day and inclusive of the last day of the period concerned;
1.6. where figures or amounts are referred to in numerals and words, the words shall prevail should there be any conflict between the two.
1.7The Title Deed of the Property has been endorsed by the Registrar of Deeds in terms of the provisions of Section 4(c) of the Housing Act to the effect that it is the subject of a Housing Development Scheme.
1.8The following additional information is provided in terms of Sections 4 and 4(a) of the ‘Housing Act’:
a.the business address of the Developer is 3 Byron Avenue, Senderwood, Johannesburg, Gauteng;
b.the rules relating to the development and the individual unit which are applicable from time to time may be inspected at the offices of the Managing Agent;
c.the property is encumbered by a mortgage bond.
d.no amount is payable by the occupant in respect of the costs of drafting the agreement;
e.all the units in the development are reserved for occupation by qualifying persons and / or their spouses and by essential employees;
f.the development is managed by the Trustees, together with a Managing Agent;
g.the following facilities and services are provided and/or rendered at the adjacent developments for occupants in connection with the units;
- basic health services for the residents of Heritage Estate will be available. Such services would include a daily medical nursing service to cater for the application of medications, dressings, administering of injections, and calling upon members of the Estate who reasonably require assistance, advice and reassurance;
- the provision of a 24 (twenty four) hour medical emergency response service by health care personnel to emergency calls from residents within the scheme;
- the provision of a weekly transport facility, in the form of a Kia type bus to a shopping centre within the vicinity of the Estate, as may be selected by the Developer;
- a Dining Hall within the Estate where meals will be served;
- a Clubhouse which will cater for all entertainment purposes within the estate, and which may be booked for private functions.
h.A frailcare and assisted care facility will be developed on a separate erf adjacent to the Heritage Retirement Estate. The facility will be leased to a service provider which will operate the facility in a commercial, independent manner. The frailcare and assisted care facility does not form part of the Sectional Title scheme.
i.Home based frailcare and assisted care will also be made available to the residents of Heritage Estate. Such home based care will be charged out at market related prices.
j.In terms of the ‘Housing Act’ it is necessary to state the anticipated expenditure which will be incurred in the control, management and administration of the development for a three year period. It is not possible to determine the exact amount of such expenditure at the date of signature of the agreement but it is anticipated that the aggregate amount of such expenditure over a three year period for the date of the agreement will be increased by approximately 12% year on year, subject to any unforeseen circumstances.
1.9Attention is drawn to the provisions Sections 4(3), 8 and 9 of the Act, which have been complied with.
2.SALE AND PURCHASE
2.1 The Seller sells and the Purchaser purchases the Property.
2.2 In the event that the Sectional Plan for the Property is not registered as at the signature date:-
2.2.1 the Purchaser acknowledges that the measurement, demarcation, boundaries and locality of the Property, common property and also the calculation of the participation quota of the Property may, on final approval and registration of the Sectional Plan of the Property not accord exactly with the measurement, demarcation, boundaries and locality thereof as depicted on draft Plan annexed marked Annexure ‘A”, and notwithstanding any variation thereto the Purchaser undertakes subject to the provisions of 2.2.2 to accept the Property as finally approved and registered;
2.2.2. the Seller shall be entitled to vary by 5% the area of the Property as referred to in 2.2.1, and in the event of a variation within this 5% parameter then neither the Seller nor the Purchaser shall be entitled to increase or decrease the Purchase Price, Should the final area of the Property exceed the 5% parameter then the Purchaser shall be entitled to resile from this agreement on written notice to be received by the Seller within 7 days after the Purchaser has received notification that the final area of the Property exceeds the 5% parameter;
2.2.3.the final measurements, demarcation, boundaries and participation quotas of the Property shall be determined by the land surveyor having due regard to the provisions of this agreement and to the requirements of the Surveyor General, local authority and any other relevant authority and shall accord as near as practically possible with the location of the boundaries and the area shown on the draft Plan annexed marked “A1 & A2” which Plan Is furnished for guidance purposes only and as to the accuracy of which the Seller does not give or make any warranty.
2.3. The parties shall accept the Property as finally surveyed, determined and approvedas being the subject matter sold and purchased in terms of this agreement.
2.4.It is recorded that the Seller or its agents may have used brochures and other advertising material in marketing and presenting the proposed development to the Purchaser and the public at large. The furniture, finishings and fittings shown in the material were for advertisement purposes only and the Purchaser acknowledges that the finishings and fittings to his section will comply with the colour scheme finishes schedule that he has chosen.
3.PURCHASE PRICE
3.1.The Purchase Price payable by the Purchaser to the Seller for the Property is inclusive of Value Added Tax calculated at the standard rate, currently 14%.
3.2. The Seller is a vendor in accordance with the provisions of the Value Added Tax Act and the sale of the Property is a taxable supply on which Value Added Tax at the standard rate, currently 14% is payable. In the event that there is a change In the standard rate of Value Added Tax then the Purchase Price shall decrease where the standard rate is decreased and the Purchase Price shall increase where the standard rate is increased, and the Purchaser shall pay the amount representing the increase.
3.3. Should the Purchaser elect to purchase any extras falling outside the finishes and specifications as set out in the Schedule of Finishes annexed marked Annexure ‘B’ then the cost of such extras in the amount as agreed between the Seller and the Purchaser shall be paid in full to the conveyancers immediately upon request therefor and prior to the commencement of the construction of the buildings comprising the Property, and shall be released to The Seller in monthly draws In such amounts as certified in writing by the architect. The cost of any extras purchased by the Purchaser from the Seller does not form any portion of the Purchase Price.
4. SECURING AND PAYMENT OF PURCHASE PRICE
4.1. The Purchase Price shall be secured by the Purchaser as follows:-
4.1.1.A cash deposit of R20000 shall be paid to the Conveyancer within 72 (seventy two) hours of the signature date.
4.1.2.Within 30 days of the signature date, 10% of the purchase price must be paid in cash, alternatively a bank guarantee must be furnished to the Conveyancers.
4.1.3.Within 45 days of the signature date, the balance of the purchase price as a cash payment, bank guarantee or Bond must be furnished to the Conveyancers.
SECURING DEPOSITR______
10% within 30 days R______
Balance within 45 days R______
Total Purchase Price R______
4.2. Any guarantees furnished by the Purchaser on account of securing the Purchase Price shall be in a form acceptable to the conveyancers.
4.3.All payments to be made by the Purchaser in terms of this agreement on account of the Purchase Price shall be paid free of exchange, deduction, demand or set off to the conveyancers.
4.4. All payments paid by the Purchaser to the conveyancers in terms of this agreement on account of the Purchase Price shall be held in trust and invested for the Purchaser’s benefit as the conveyancers in their discretion so elect pending release and payment to the Seller in accordance with the provisions of this agreement.
4.5.The Purchaser and the Seller by their signatures to this agreement give written consent in terms of Section 78(2A) of the Attorneys Act authorising the conveyancers to invest all amounts received from the Purchaser on account of the Purchase Price in accordance with the provisions of 5.5.
5. SUSPENSIVE CONDITIONS(Delete whichever is not applicable.)
5.1.This sale is subject to the fulfillment of the suspensive condition that :
5.1.1Mortgage Loan Finance
within 30 days after the signature date the Purchaser obtains a loan from a bank or other financial Institution for an amount not less than that referred to in 4.1.3 on the security of a first mortgage bond to be registered over the Property simultaneously with registration of transfer of the Property into the Purchaser’s name. This condition shall not be deemed to have been fulfilled until the Seller is in receipt of written advice from the bank or financial institution concerned that a loan has been granted to and accepted by (the Purchaser for such amount upon that bank or financial institution’s usual terms and conditions relating to mortgage loans without any suspensive conditions attaching thereto and furthermore that the funds relating to such loan are immediately available for allocation thereto;
5.2.The suspensive condition referred to In 5.1 has been incorporated in this agreement solely for the benefit of the Purchaser, who may at any time on written notice to the Seller waive the operation thereof.
5.3.Should the suspensive condition referred to in 5.1 not be fulfilled within the prescribed time limits and the periods for fulfillment thereof not be extended in writing by the parties prior to the expiry thereof, then this agreement shall lapse and be of no force and effect, and in that event the parties shall be obliged to restore each other to the status quo ante as at the signature date.
6.CONDITIONS RELATING TO THE PROPERTY
The Purchaser acknowledges that :
6.1.the Property is purchased “voetstoots” absolutely as it stands, any differences as to quantity, quality, description or otherwise notwithstanding and without any warranties, representations or undertakings either express or implied;
6.2.the Purchaser is fully acquainted with the land, the Property, nature, extent and locality, and all the plans and annexures forming part of this agreement and the Purchaser shall take the Property with all its benefits and defects, latent and patent, the Seller and/or its agents being entirely free from any liability;
6.3. purchases the Property subject to all servitudes and conditions:
6.3.1contained in the title deeds of the land;
6.3.2. imposed by the Developer in respect of and being applicable to the scheme in terms of Section 11(2) of the Act;
6.3.3.contained in the Rules;
6.3.4.contained in this agreement;
the Seller being entirely free from all liability In respect thereof.
6.4The Seller shall register as Rules for the scheme, the standard Rules for the management and control of Sectional Title Schemes as prescribed by regulation in the Sectional Titles Act, however, the Seller shall, in its discretion be entitled but not obliged to effect modification to the Rules to ensure effective management of the scheme.
7. POSSESSION OCCUPATION AND OCCUPATIONAL RENTAL
7.1.The Purchaser shall, provided the Purchaser shall have complied with his/her obligations in terms of clause 4, be entitled to occupation of the Property on the occupation date, and from the occupation date all benefits of profit and income and all risks of damages and losses in and to the Property shall pass to the Purchaser, provided that should the Seller for any reason be unable to give occupation of the Property to the Purchaser on the occupation date the Purchaser shall accept occupation of the Property on the earliest date thereafter on which the Seller is able to give occupation and such subsequent date shall be deemed for all purposes to be the agreed occupation date, the Purchaser in such circumstances having no claims howsoever arising against the Seller for failure to give occupation on any promised date.
7.2. In the event that the occupation date precedes the registration date the Purchaser shall pay occupational rental to the Seller from the occupation date to the registration date, both days inclusive, payable monthly in advance on the first day of each month calculated at 0.8% of the Purchase Price, which occupational rental shall be pro-rated for any period comprising less than one (1) month.
7.3.In order to confirm that the unit is ready for beneficial occupation, the architect shall issue a certificate of practical completion. Consequently, an occupational certificate from Council is not a prerequisite for beneficial occupation. The architect’s decision is final and binding on the parties.
7.4. The Purchaser, including his agents, representatives, guests, invitees and any other person occupying the Property warrants and undertakes to and in favour of the Seller, the body corporate and all other owners and occupiers of sectional units in the scheme that the Purchaser including his agents, representatives, guests, invitees and occupants shall observe and comply fully and effectively in all respects with the Rules.
7.5. The Purchaser shall not sell, alienate or otherwise dispose of the Property or any rights pertaining thereto until the full Purchase Price and all other amounts due by the Purchaser to the Seller in terms of this agreement shall have been paid to, or secured to the Seller’s satisfaction, and then upon such terms and conditions as set out in this agreement.