Contractual Responsibilities of Ownership

Question 1

What is an offer to purchase of sale agreement?

Answer 1

• written agreement between a seller and buyer
• includes terms and conditions for the purchase

Question 2

What happens once a person has signed an offer to purchase?

Answer 2

• they are bound by law to purchase the property

Question 3

What is a deed of sale?

Answer 3

• the signed agreement between the buyer and seller
• every single condition agreed upon must be specified in writing

Question 4

When does an offer to purchase become the deed of sale?

Answer 4

• once the buyer and seller sign the document

Question 5

What should the deed of sale contain in terms of property details?

Answer 5

• correct names and residential addresses of the seller and buyer
• description of property

Question 6

What should the deed of sale contain in terms of the transaction?

Answer 6

• the transaction is subject to a bond being obtained within a set period
• if not fulfilled, sale will lapse

Question 7

What should the deed of sale contain in terms of purchase?

Answer 7

• purchase price

Question 8

What should the deed of sale contain in terms of occupation?

Answer 8

• date of occupation
• occupational interest should the transfer not be completed by the date of occupation

Question 9

What should the deed of sale contain in terms of expenses?

Answer 9

• stipulation that seller is responsible for estate agent’s commission
• stipulation that buyer is responsible for all other expenses

Question 10

What should the deed of sale contain in terms of fixtures?

Answer 10

• list of fixtures and fitting that have to stay
• fixtures and fitting that may be removed

Question 11

What should the deed of sale contain in terms of penalties?

Answer 11

• clause stipulating penalties
• in the event that either party breaks the contract